This article first appeared on GuruFocus .

Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Alupar Investimento SA ( BSP:ALUP3 ) reported a significant revenue growth of 90.4% compared to the same period last year.

• The company successfully completed the TNE project, connecting the last isolated point to the grid, which is expected to generate $60 million in annual revenue.

• Alupar Investimento SA ( BSP:ALUP3 ) achieved a 34% increase in profit compared to the first quarter of 2024.

• The company paid a total of 290.6 million in dividends, equating to $0.90 per unit, reflecting strong shareholder returns.

• The board approved a dividend distribution of 900 million, marking the highest dividend ever paid since 2022.

Negative Points

• The company's capital cost is higher than competitors, making it challenging to compete in certain acquisition opportunities.

• There is uncertainty regarding the regulatory environment for battery storage projects in Latin America, affecting future investment decisions.

• Alupar Investimento SA ( BSP:ALUP3 ) faces challenges in participating in M&A processes due to higher capital costs.

• The company experienced a reduction of 123 million due to GPM reduction in the quarter.

• There are ongoing uncertainties and potential legal challenges related to reimbursement through VACS, which could impact financial outcomes.

Q & A Highlights

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Q: Can you provide insights into Alupar's approach to acquisitions, particularly regarding transmission platforms that have been put up for sale recently? A: (CFO, Jose Luis de Godoy de Pereira) Alupar is primarily a greenfield company, and our capital costs are higher compared to others, making it challenging to compete in acquisitions without compromising our capital. We have observed that international funds are more active in these acquisitions. We believe that participating in greenfield projects offers better returns than M&A activities. Currently, we do not have any battery projects in the pipeline, as we are awaiting regulatory clarity.

Q: Could you elaborate on Alupar's participation in the recent auction for synchronous compensators and the company's expertise in this area? A: (Director of Investor Relations, Luis Coimbra) Alupar has experience with synchronous compensators in Chile, which require advanced engineering due to their complexity. The compensators in the recent auction were more complex, and we approached them conservatively. We are leveraging our expertise to evaluate these opportunities carefully.