Alupar Investimento S.A. reported a 14.6% year-on-year drop in regulatory net income to R$159 million for the second quarter of 2026, missing estimates and sending shares lower. The decline came even as regulatory net revenue rose 10.3% to R$946.1 million and regulatory EBITDA climbed 6.5% to R$724.7 million.
The company attributed the profit contraction to higher debt-service costs tied to the IPCA inflation index and to execution costs on transmission projects in Brazil and Latin America. Financial expenses widened 15.8% to R$238 million from R$205.5 million a year earlier, while the EBITDA margin slipped 2.7 percentage points to 76.6% because EBITDA grew more slowly than revenue.
Investor relations director Luiz Coimbra told CNN Brasil that transmission revenue increased but was partially offset by generation curtailments ordered by the national grid operator ONS. "No lucro, tivemos uma redução. Os principais motivos são que grande parte de nossas dívidas estão indexadas em IPCA, que veio mais alto neste trimestre (...) e o imposto de renda," Coimbra said.
On a consolidated IFRS basis, the picture differs sharply: net income jumped 187.6% to R$416.6 million on revenue of R$1.627 billion, according to a separate filing. The divergence reflects different accounting treatments for transmission concessions and project execution.
For the first half, regulatory net income fell 5.6% to R$307.9 million while revenue grew 13.3% to R$1.94 billion and EBITDA rose 11.2% to R$1.52 billion. The half-year EBITDA margin narrowed 1.4 points to 78.2%.