AXIA Energia S.A. (AXIAY)

Price$10.89Cached quoteAs of 2026-09-05 11:33 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because good cash generation is offset by uneven earnings and heavy reinvestment.

At the observed OTC quote, public market data put AXIAY at about twelve to thirteen times profit from the latest 12 months; each depositary receipt represents one Brazilian common share. The supplied FY2024 history shows BRL 10.38 billion of net income and BRL 9.29 billion of free cash flow, meaning cash left after running and investing in the business. That is healthy, but not a bargain-level valuation for a utility with visibly uneven profits. The price looks reasonable if 2024-like cash generation persists and leverage stays controlled.

Big pictureProfit has improved sharply, but the long record shows earnings can swing even when revenue rises steadily.

Revenue rose from BRL 29.0 billion in 2019 to BRL 40.2 billion in 2024, about 6.7% yearly growth. Net income was much less steady: BRL 11.2 billion in 2019, then BRL 6.3 billion, BRL 5.6 billion, BRL 3.6 billion, BRL 4.5 billion, and finally BRL 10.4 billion in 2024. Operating cash flow climbed to BRL 12.4 billion. The pattern supports durable electricity assets, but also shows that profits can move sharply with energy-market conditions, provisions, financing costs, and portfolio effects.

Business strengthAXIA carries meaningful debt, yet strong liquidity and improving cash flow give it room to invest.

At FY2024, cash was BRL 26.6 billion against BRL 75.6 billion of debt, leaving BRL 49.0 billion of net debt; current assets were about twice current liabilities. By June 2026, reported net debt was BRL 45.5 billion and leverage improved to 1.7 times operating cash profit before depreciation and financing effects. Capital allocation has shifted: 2023 buybacks were BRL 1.97 billion, while 2024 paid BRL 1.31 billion in dividends and just BRL 0.12 billion in buybacks. In 2026, up to BRL 7.7 billion was approved for preferred-share redemptions; conversions change common-share count but replace existing claims.

What could change the storyThe upside depends on new transmission returns arriving before debt, cash costs, or hydrology weaken the payoff.

The bull case is execution: AXIA says 288 transmission projects could add about BRL 2.0 billion of annual allowed revenue by 2030 for roughly BRL 15.5 billion of investment. The bear case is paying for growth before those returns arrive; second-quarter investment rose 53%, while financing costs remain large. Because much of generation is hydroelectric, weak reservoir conditions can also raise purchased-power exposure. A stronger thesis needs free cash flow near or above 2024's BRL 9.3 billion and leverage below about two times; sustained slippage would justify a lower valuation.

AI: News

Second-quarter earnings reboundSecond-quarter results showed stronger core profit and cash generation, but investment spending also accelerated sharply.

On August 5-6, AXIA reported adjusted operating cash profit of BRL 6.31 billion in the second quarter, up 22.5% from a year earlier. Six-month adjusted net income reached BRL 5.32 billion versus BRL 1.39 billion, while second-quarter free cash flow was BRL 4.96 billion. Investment also rose 53% to BRL 3.12 billion. The combination improves earnings confidence, but faster spending means not all of the stronger cash flow is available for distributions.

Preferred-share redemptionA large preferred-share redemption returns cash to holders while changing the mix of AXIA's share classes.

On August 6, the board approved a BRL 2.0 billion mandatory redemption covering 37.2 million Class C preferred shares, about 6.14% of that class. Holders could instead convert affected preferred shares into common shares at 1.1 common shares for each preferred share; U.S. depositary holders could not choose conversion. Cash redemption reduces cash, while conversion increases the common-share count but removes an existing preferred claim, so the economic effect is more nuanced than simple dilution.

New York exchange exitAXIA moved its American receipts off the New York Stock Exchange, reducing U.S. trading visibility.

On July 6, AXIA said its American depositary shares represented only about 2.5% of outstanding shares and that it would consolidate trading around Brazil. New York trading ended in August and the common receipts continued over the counter as AXIAY. The underlying business did not change, but over-the-counter trading can reduce institutional access and trading depth. Any share-price move around the transition cannot be confidently attributed to the delisting alone.

Share structure simplifiedAXIA simplified its capital structure by exchanging older preferred shares for common shares and joining Brazil's top governance segment.

Effective June 10, all Class B1 preferred shares were exchanged for common shares at 1.1 common shares for each preferred share, with the corresponding depositary receipts exchanged on the same basis. This completed AXIA's migration to B3's Novo Mercado governance segment. The transaction changes share counts and makes older per-share comparisons less clean, but it replaces existing preferred claims rather than raising fresh equity. Any market-price effect cannot be isolated reliably from other moves occurring at the same time.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	R$41.28B	R$40.18B	R$37.16B	R$34.07B	R$34.63B	R$25.40B	R$29.04B	R$26.21B	R$29.44B	R$50.40B	R$32.18B
Gross profit	R$36.25B	R$34.23B	R$31.63B	R$29.24B	R$24.95B	—	—	—	—	—	—
Gross margin	87.80%	85.20%	85.13%	85.82%	72.05%	—	—	—	—	—	—
Operating expenses	R$22.96B	R$21.67B	R$20.77B	R$29.28B	R$29.70B	R$23.42B	R$20.44B	R$9.85B	R$25.91B	R$33.57B	R$42.65B
Operating income	R$13.29B	R$19.61B	R$11.02B	R$5.16B	R$9.78B	R$6.21B	R$8.60B	R$16.36B	R$3.53B	R$16.83B	−R$10.47B
Operating margin	32.19%	48.80%	29.65%	15.16%	28.25%	24.43%	29.61%	62.42%	11.98%	33.40%	−32.52%
EBITDA	R$3.61B	R$23.60B	R$14.64B	R$7.85B	R$11.23B	R$7.46B	R$10.41B	R$18.06B	R$5.05B	R$18.40B	−R$8.62B
EBITDA margin	8.75%	58.73%	39.39%	23.05%	32.42%	29.38%	35.84%	68.91%	17.15%	36.50%	−26.79%
Net income	R$6.56B	R$10.38B	R$4.39B	R$3.64B	R$5.71B	R$6.39B	R$11.13B	R$14.56B	−R$1.73B	R$3.67B	−R$11.92B
Net profit margin	15.89%	25.83%	11.83%	10.68%	16.50%	25.15%	38.34%	55.53%	−5.86%	7.29%	−37.03%
Basic EPSper basic share	R$0.00	R$4.56	R$1.98	R$1.58	—	—	—	—	-R$1.30	R$2.65	-R$8.43
Diluted EPSper diluted share	R$0.00	R$4.50	R$1.98	R$1.58	—	—	—	—	-R$1.30	R$2.62	-R$8.43

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Owners

Reported shareholders

Ownership data is not available for this listing yet.

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys42$66.03M disclosed value

Sells (SEC code S)131$211.29M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 17, 2026Form 4	Batista de Lima Filho PedroDirector	SellCommon Shares · indirect	118.7K	$10.16	$1.21M	4.90M
Jun 17, 2026Form 4	Batista de Lima Filho PedroDirector	SellCommon Shares · indirect	57.8K	$10.16	$587.2K	4.63M
Jun 17, 2026Form 4	Batista de Lima Filho PedroDirector	SellCommon Shares · indirect	114.1K	$10.16	$1.16M	7.23M
Jun 17, 2026Form 4	Batista de Lima Filho PedroDirector	SellCommon Shares · indirect	169.4K	$10.16	$1.72M	14.98M
Jun 15, 2026Form 4	Batista de Lima Filho PedroDirector	SellCommon Shares · indirect	173.8K	$10.13	$1.76M	4.69M

Review ownership filings at SEC.gov ↗

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AXIA Energia S.A. (AXIAY)

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