Energy Co Of Parana (ELPC)

Price$12.26Cached quoteAs of 2026-09-05 08:34 UTC

AI: Fair-priced

Price checkThe shares look fairly priced because stronger profits are balanced by a higher price for each real of assets.

Near the observed market level, third-party ratio data put ELPC at about 13.5 times trailing earnings, 1.8 times book value, and roughly 27 times free cash flow. Book value is the accounting value of net assets; free cash flow is cash left after running and investing in the business. The dividend yield is about 5.4%. That mix looks balanced, not cheap: earnings are reasonably priced, but cash generation is expensive and leverage is elevated. The price therefore assumes recent profit growth persists and investment spending eventually converts into stronger cash returns.

Big pictureRevenue and operating cash stayed resilient for years, but heavy investment now absorbs much of that cash.

From 2019 to 2024, supplied SEC-derived revenue rose from R$16.24 billion to R$22.65 billion, while operating cash flow stayed between R$2.95 billion and R$3.94 billion every year. Net income remained positive but swung from R$1.11 billion in 2022 to R$4.95 billion in 2021, so profits are less steady than cash. The 2025 filing shows operating cash of R$3.03 billion against R$3.60 billion of capital spending, turning cash after investment negative. Future cash durability therefore depends on earning adequate returns from today’s heavy investment program.

Business strengthA regulated grid and improving efficiency support earnings, but rising debt reduces the margin for mistakes.

Copel’s distribution business gained a stronger earnings base when regulators recognized a R$19.94 billion asset base. In 2Q26, recurring operating profit rose 20.8% and recurring net income rose 42.6%. Against that, total debt reached R$23.48 billion, net debt R$19.65 billion, and average debt cost 12.92%. Capital allocation is aggressive: policy targets 2.9 times leverage and at least 75% of annual profit returned to shareholders. A 2023 capital increase raised the share count roughly 9%; inconsistent later share-count tags mean the apparent huge 2024 buyback should not be credited as real per-share value creation.

What could change the storyThe upside needs regulated returns and efficiency gains to outrun debt costs, investment needs, and generation setbacks.

The bull case is concrete: the rate review expanded recognized distribution assets, 2Q26 billed grid demand grew 7.2%, and generation achieved 6.4% higher average selling prices. The bear case is equally specific: generation curtailment rose to 23.7%, financing losses worsened as debt grew, and investment can outrun operating cash. The valuation works if efficiency and regulated returns keep compounding while leverage stays inside management’s 2.6-to-3.2-times band. It weakens if debt breaks that range, curtailment remains high, or free cash flow stays thin despite higher reported profits.

AI: News

Second-quarter earnings surgeSecond-quarter profits improved sharply, showing that operating gains were still outweighing higher financing costs.

On August 5, Copel reported 2Q26 recurring operating profit of R$1.61 billion, up 20.8%, and recurring net income of R$645 million, up 42.6%. Distribution demand and efficiency helped, but recurring financial losses widened to R$653 million as debt charges rose. The shares gained about 0.9% in the next session, then fell the following day, so the short price move does not prove causation. Investors should care because operating improvement is now competing directly with higher financing costs.

Distribution rate resetThe regulator approved a much larger asset base, supporting future earnings after years of grid investment.

On June 23, the regulator approved a net distribution asset base of R$19.94 billion and calculated R$2.53 billion of return on capital, up from R$0.98 billion under the prior cycle. The average customer tariff effect was 20.51% from June 24, partly shaped by a R$1.3 billion deferral. ELPC rose about 0.6% that day and fell about 1.1% next session, so attribution is unclear. The lasting value link is higher recognized assets supporting regulated revenue and returns.

Dividend policy resetCopel kept a generous profit-return promise while allowing more debt, trading shareholder income against financial flexibility.

On July 15, Copel raised its target leverage from 2.8 to 2.9 times, widened the acceptable range to 2.6-3.2, and lengthened convergence to 48 months. It kept a minimum annual distribution of 75% of net income and at least two payments yearly. The stock fell 1.5% that day and 2.9% next session, but timing alone cannot establish why. The policy matters because it promises substantial shareholder cash while explicitly accepting more leverage to fund investment.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	R$26.12B	R$22.65B	R$21.48B	R$20.54B	R$20.98B	R$18.63B	R$16.24B	R$14.93B	R$14.02B	R$13.10B	R$14.95B
Gross profit	R$5.66B	R$4.89B	R$4.90B	R$4.93B	R$4.27B	R$5.29B	R$4.41B	R$3.43B	R$3.36B	R$2.87B	R$3.15B
Gross margin	21.68%	21.59%	22.80%	24.01%	20.35%	28.37%	27.12%	22.99%	23.95%	21.89%	21.05%
Operating expenses	R$1.11B	R$17.76B	R$16.58B	R$15.61B	R$16.71B	R$13.35B	R$11.46B	R$11.50B	R$10.67B	R$10.23B	R$11.80B
Operating income	R$4.55B	−R$827.0M	−R$1.20B	−R$1.98B	R$658.5M	−R$1.03B	−R$1.10B	−R$1.04B	−R$1.22B	−R$878.8M	−R$1.03B
Operating margin	17.44%	−3.65%	−5.60%	−9.65%	3.14%	−5.54%	−6.79%	−6.96%	−8.68%	−6.71%	−6.86%
EBITDA	R$4.97B	R$638.5M	R$178.7M	−R$747.9M	R$1.74B	−R$22.2M	−R$152.1M	−R$289.9M	−R$485.7M	−R$170.5M	−R$348.6M
EBITDA margin	19.03%	2.82%	0.83%	−3.64%	8.30%	−0.12%	−0.94%	−1.94%	−3.46%	−1.30%	−2.33%
Net income	R$2.69B	R$2.80B	R$2.33B	R$1.15B	R$5.05B	R$3.91B	R$2.06B	R$1.44B	R$1.12B	R$874.5M	R$1.16B
Net profit margin	10.29%	12.36%	10.83%	5.60%	24.07%	20.98%	12.70%	9.67%	7.97%	6.67%	7.77%
Basic EPSper basic share	R$3.62	R$3.77	R$3.03	R$1.63	—	—	—	R$4.91	R$3.61	R$3.13	R$3.87
Diluted EPSper diluted share	R$3.62	R$3.77	R$3.03	R$1.63	—	—	—	R$4.91	R$3.61	R$3.13	R$3.87

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 12 reported holders of ELPC
Holder	Shares held
Slaviero Daniel Pimentel	147.68K
Malczewski Marcel Martins	113.45K
Sales Pedro Franco	74.84K
Lima Rodolfo Moraes Fontes	39.87K
Neto Vicente Loiacono	36.92K
Campos David (D.)	36.92K
de Abreu Marco Antonio Villela	31.06K
Martins Jacildo Lara	24.84K
Junior Geraldo Correa de Lyra	24.84K
Biedermann Carlos	24.84K
Candido Marco Antonio Barbosa	24.84K
Martins Viviane Isabela de Oliveira	24.84K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 3/A ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)1$490.3K disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Apr 8, 2026Form 4	Sales Pedro FrancoDirector	SellCommon Shares	153.7K	$3.19	$490.3K	74.8K

Review ownership filings at SEC.gov ↗

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Energy Co Of Parana (ELPC)

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