Q4 2025 Empresa Distribuidora y Comercializadora Norte SA Earnings Call
With Marie and will come this is you'll see a lot of muscle investor relation the beauty of my job out there theyre not on behalf of the blue like to thanks, everybody for participating in this conference call to discuss the restart of the first quarter that ended in December 31 25.
Lucila Ramallo: Good morning, and welcome. This is Lucila Ramallo, Investor Relations Deputy Manager at Edenor. On behalf of Edenor, we would like to thank everybody for participating in this conference call to discuss the results of Q4 ended 31 December 2025. We will also have an important recent development and advances in our efforts to express our position as an energy leader. If you would like to receive our annual release or presentation, you can download them easily from the investor relations section of our website located at www.edenor.com, or contact our investor relations team to request the document. This event is being recorded. After the company remarks are completed, there will be a question and answer section for which you may submit questions through the webcast chat.
We will also Kai lani partnered with some development and advances in our airports, both French and proposed visuals and energy leader.
If you would like to receive our islands released our breath of infection, you called them easily from the Investor Relations section of our website.
At Www dot.
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Our investor relations team to request the documents.
This event is being recorded after the compounded remarks are completed there wouldn't be a question and answer infection for which you may submit questions for the webcast chat.
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Before proceeding let me mention about forward looking statements are based on where they live and assumptions softer than normal.
And one for Michael currently available to the company they involve risks uncertainties and assumptions because they relate to assist our events and therefore depends on circumstances that may or may not occur in the future.
Lucila Ramallo: Before proceeding, let me mention that forward-looking statements are based on the belief and assumptions of the Edenor management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic condition, industry condition, and other operating factors could also affect the future results of Edenor and could cause results to differ materially from those expressed in such forward-looking statements. Now, let me pass the call to Germán Ranftl, our CFO, who will guide us through the presentation.
Investors should understand that general economic conditions industry conditions and other operating platform will also expensive.
And then R. R.
Comparably sized fully private materially from those expressed in or want to look inside now.
Now, let me pass the call to come on Brown, our CFO, who will guide us for the press infection.
Thank you Lou Sheila good morning, and welcome to everyone. Your presence here is very important to us and we hope to provide you with a good understanding of it and our performance during the fourth quarter of 2025.
Highlights from the regulatory framework before moving to the discussion of details of our financial performance. During the fourth quarter of 2005, I would like to take a few minutes to highlight that ignore a seamless reviewed a major improvement in results over the last several years.
Germán Ranftl: Thank you, Lucila Ramallo. Good morning, and welcome to everyone. Your presence here is very important to us, and we hope to provide you with a good understanding of Edenor's performance during Q4 2025, highlights and regulatory framework. Before moving to the discussion of details of our financial performance during Q4 2025, I would like to take a few minutes to highlight that Edenor has demonstrated a major improvement in results over the last several years, led by the restoration of a healthy regulatory environment and substantial improvement in the economic situation in Argentina. These factors, combined with our focus on continuous operational improvement and modernization of the network, have positioned the company well to take advantage of a highly attractive growth opportunity in Argentina. I think it's appropriate to summarize the key milestones of 2025.
Led by our restoration unhealthy regulatory environment and substantial improvement economic situation in Argentina.
These factors combined with our focus on continuous continuous operational improvements and modernization of the network have positioned the company well to take advantage of our highly attractive growth opportunity in Argentina.
I think it's appropriate to summarize the main key milestones of 2025 January 20th rupee price isn't all submitted a new tariff proposal to virtual reality to be able to really being a public hearing.
February of 2025.
The regulatory Andy do you have a public hearing to defined electricity distribution targets for the next five years 'twenty to 'twenty five 'twenty 'twenty four 2008.
Germán Ranftl: January 2025, Edenor submitted a new tariff proposal to the regulatory entity to be evaluated in a public hearing. February of 2025, the regulatory entity held a public hearing to define electricity distribution tariffs for the next five years, 2025 till 2030. April of 2025, there has been approved the five-year tariff review that includes an automatic adjustment of 0.42% plus an inflation adjustment considering the wholesale price index of 33%, sorry, consumer price index of 33% and wholesale price index of 67%. This adjustment is being applied automatically on a monthly basis since April of 2025. May of 2025, debt regularization with CAMMESA is being paid through payment plans in 72 and 75 monthly installments. October of 2025, Edenor filed a claim of regulatory assets calculated by independent third parties. The Secretary of Energy is already analyzing company's complaint.
After the 25.
There hasn't been approved the five year charters review that includes a mark to market adjustment of $2, 42% plus uninflated adjustment of.
Considering the wholesale price index of 33%, sorry, consumer price index or 33% on wholesale price index of 67%. This adjustment is being applied automatically on a monthly basis.
Since.
April of 2025.
May of 2025 that we're going to recession, which can mesa is being paid through payment plans and 72 and 75 monthly installments.
<unk> 2025 filed a claim of regulatory assets calculated by independent third parties. The secretary of energy is already analyzing companies complete.
We do in January of 2025 due to December of 2025 to 12 months targets have increased 30, 37% versus.
Consumer price index of 32% versus 41% of the foreign exchange.
Germán Ranftl: Between January 2025 and December 2025, the 12-month tariff has increased 37% versus the consumer price index of 32% and versus 41% of the foreign exchange depreciation. Monthly average tariff increase of 3.1% since August 2024. In December 2025, the regulatory entity authorized the company to modify the frequency of meter readings from bimonthly to monthly, with an important impact during Q1 2026. From January 2026 to March 2026, automatic monthly adjustments continued to be applied. In March 2026, there has been a 2.5% increase in the value-added amount. The normalization of the tariff, including the effects of the reduction of subsidies, was clearly reflected in Edenor's financial indicators, with an 11% rise in full-year sales and 110% rise in EBITDA. For all of 2025, revenues increased 11%, and EBITDA increased 110%, resulting in ARS 572 billion.
Creation.
The average tariff increase of three 1% since August of 2024.
December of 2025, the regulatory entity authorized the company to modify the frequency of meter readings from bi monthly to monthly.
I mean important impact during the first quarter of 2026 <unk>.
January of 'twenty during the six to March of 2026 automatic monthly adjustments continue to be applied on the March of 2026, there has been at two 5% increase in the value on it.
Then the monetization of Vitaros, including <unk>.
Including the effects of the rate reduction of subsidies whats being reflected in the interim financial indicators.
11% rate in full year sales and 110%.
For all of the 2025 revenues increased 11% and maybe that increase of 110%, resulting of 572 billion pesos. We believe that these events have positioned the company to be more dynamic with more favorable financing results going forward.
We will also enable us to continue our strong investment program and further improve our services.
Then the monetization authorities did not impact our collectability, we've consistently remains high being 90, 575% for 2025 periods financing results revenues in the fourth quarter of 2025, 4% in real terms two 680 <unk>.
Germán Ranftl: We believe that these events have positioned the company to be more dynamic with more favorable financing results going forward. This will also enable us to continue our strong investment program and further improve our services. The normalization of tariffs did not impact our collectability, which consistently remains high, being 95.75% for the 2025 period. Financing results. Revenues in Q4 2025 rose 4% in real terms to ARS 680 billion versus ARS 706 billion in the prior year. This was mainly due to the tariff normalization as explained earlier. Energy sales evolution. Edenor customer base in Q4 2025 reached 3.39 million clients, up 1% versus Q4 2024. This rise was mainly due to an increase in residential and medium-sized commercial clients.
Pesos versus 706 million pesos.
But there is pretty.
Prior year.
This was mainly due to the tariff normalization and explained earlier energy evolution in Oregon customer base out there.
Fourth quarter of 2025 reached 339, three points to 39 million clients up 1% versus the fourth quarter of 2020 for this race was mainly due to an increase in residential and medium sized commercial clients. The raise was helped by market disciplinary measures, including the installation.
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As you meet you received in the fourth quarter of 2025, which are designed to convert in formula and the unreported connections into fully transparent connections in the electricity nutrition system for.
Germán Ranftl: The raise was helped by market disciplinary measures, including the installation of 3,729 energy meters in Q4 2025, which are designed to convert informal and unreported connections into fully transparent connections in the electricity distribution system. Full-year energy sales for 2025, as we said, rose 1% year-to-year to 22,952 GWh, led by a rise in demand from residential and medium commercial clients. In Q4, energy sales volume increased 3.94% to 5,379 GWh, led by the higher demand from residential customers and small commercial clients. Distribution margin for 2025, our distribution margin rose 9% to ARS 1,253 billion, mainly due to an increase in tariff, higher demand, and higher energy purchase cost. In Q4, the distribution margin was ARS 320 billion, 11% higher than the ARS 289 billion in Q4 2024. EBITDA.
Full year energy sales for the 2025 hubs, we sat rose 1% year to year to 22950, <unk> led by a rise in demand from the residential and medium commercial clients.
In the fourth quarter energy losses.
In the fourth quarter energy sales volume increased 394%.
<unk> 5379 Geos.
Led by the higher demand from residential customers.
Small consumer commercial clients distribution margin for 2025, our distribution margin rose, 9% to one five I'm sorry.
One 1253.
253 billion pesos, mainly due to increasing targets higher demand and higher energy purchase cost in the fourth quarter. The distribution margin was 321 billion pesos, 11% higher than the 289 billion pesos in the fourth quarter of 2024 EBITDA looking at EBITDA in total.
The accumulated EBITDA for the 2025, <unk> hundred 10% to 572 billion pesos for the fourth quarter of 2026, EBITDA rose 28%.
97, 5 billion pesos on improved from the 76 million pesos registered in the fourth quarter of 2024.
Germán Ranftl: Looking at EBITDA, the total accumulated EBITDA for 2025 rose 110% to ARS 572 billion. For Q4 2026, EBITDA rose 28% to ARS 97.5 billion, an improvement from the ARS 76 billion registered in Q4 2024. This includes the gain of ARS 218 billion for the full year due to the positive effect of the regularization agreement with CAMMESA for the outstanding balance. Not including the CAMMESA gain, EBITDA was ARS 354 billion, still up very strong, more than 30%. The improvement was due to higher revenues as a result of the five-year tariff review, including the 320% increase adjustment that we received in February, and all the monthly adjustments that we received with an average of 3.1%.
This includes the gain of 219 billion pesos for the full year due to the positive effect of the normalization agreement with commission for the outstanding balance not including the <unk> gain EBITDA was 354 billion pesos still up very strong.
And 30%.
The improvement was due to a higher revenues as a result of the five year tariff review includes the 320% increase adjustments that we received in February.
All of the monthly adjustments that we'll receive with an average of three 1% energy purchase cost for the full year rose, 13% due to the reduction in subsidies, which established limits of 250 kilowatts in three and 350 kilowatts into.
I would also like to highlight our efforts to manage costs we were.
Germán Ranftl: Energy purchase costs for the full year rose 13% due to a reduction in subsidies, which established limits of 250kW in N3 and 350kW in N2. I would also like to highlight our efforts to manage costs, where we saw important improvements and changes, which made an important contribution to the rise of EBITDA. Personnel costs declined 6% for the full year of 2025 due to efforts to bring in new talent and optimize our workforce. Contractor costs, up 14% for the full year, were down 33% in Q4 due to the increase of the use of leveraging of artificial intelligence in our expansion of digital customer interaction channels. This enabled us to close three commercial offices, and we hope to be able to close all the remaining offices in the near future. We also are renegotiating rental, maintenance, and service contract suppliers.
It was so important.
Improvements and changes, which made an important contribution to the ratio.
Personnel costs declined 6% for the full year of 2025 due to efforts to bring in new talent and optimize our work.
Contractor costs through up.
40% for the full year were down 23% in the fourth quarter due to incurring the increase of the use of <unk>.
Leveraging.
Artificial intelligence and our expansion of digital customers interactional channels. This will enable us to close this week.
Offices, and we hope to be able to grow.
<unk> opposition in the near future.
We also are in the renewal season.
And some service contracts suppliers at this time.
<unk> expenses have seen some increase due to the effect of it.
For Hana implementation.
Well costs were down 81% in fourth quarter of 2020 for sort of a 255.
27% for the year helped by reduced material consumption and inventory efficiencies lower inventory stupid lifted reported.
Germán Ranftl: At the same time, IT-related expenses have seen some increase due to the effect of the SAP S/4HANA implementation. Material costs were down 81% in Q4 2025 and 27% for the full year, helped by reduced material consumption and improved inventory efficiencies, lower inventory needs due to the lifting of import restrictions, and reduced vehicle maintenance costs due to acquisition of electric and new vehicles. Penalties also have shown a notable improvement, down 66% for the full year and 6% in Q4 2025, because of the change by the regulatory entity in how penalties are valued, resulting in a net positive adjustment. Net financial expenses of ARS 377 billion for 2025 were down 38% versus the prior year, helped by lower financial expenses, mainly driven by reduction in outstanding debt and lower interest expenses related to CAMMESA. Net results.
And reduce vehicles maintenance costs the acquisition of electric vehicles penalties also shown a notable improvement down 66% for the full year and 6% in the fourth quarter of 2025 because of the change by the regulatory entity.
<unk> is our value, resulting in a net positive adjustments.
Net financial expenses net financial expenses of 377 million pesos for the 2025 were down 38% versus the prior year helped by lower financial expenses, mainly driven by a reduction in outstanding debt.
Lower interest expenses related to come and shop net results on the net income line.
Our net profit of $4 6 billion pesos compared to a loss of 21 billion pesos in the fourth quarter of 2024. The difference is mainly due to the positive effect of the tariff adjustment and a higher accounting gain related to inflation adjustments.
Germán Ranftl: On the net income line, Edenor posted a net profit of ARS 46 billion compared to a loss of ARS 21 billion in Q4 2024. The difference is mainly due to the positive effect of the tariff adjustments and a higher accounting gain related to inflation adjustments. CapEx. For the full year of 2025, we invested ARS 395 billion. Total investment in 2025 was higher than expected because some projects were moved forward from 2026. For the fourth quarter, investment totaled ARS 103 billion. Our outstanding spending reflects our firm commitment to improve service quality, which is reflected in a significant improvement in our main operating indicators. We highlight our key projects that are underway, including the expansion of Zappalorto substation, the new 332kW Zappalorto-Merlo electroduct, a new step-down transformer in Puerto de Lagos, and a new substation in the Buenos Aires suburb of Martinez.
Capex for the full year of 2025, we invested 395 billion pesos total investment in <unk> was higher than expected because some projects were moved forward from 2026 for the fourth quarter investments totaled 107, sorry 103 billion pesos.
Our outstanding spending reflects our commitment to improve service quality, which is reflected in a significant improvement in our operating indicators. We highly we highlight our key projects that are underway, including the expansion of its up a lot of substation, the new 332 keto watch stockpile.
North America Electric look electric <unk> newest step down transformer and portal allow us on a new substation immune <unk> subs similar Martinez.
We are also planning additional products for 2026, including replacement of numerous station substation.
New facilities and the interconnection of the colloquial substation. Both planned for April of next year also we are planning a new substation in millennium and an expansion of the <unk> calorie substitution late in the year.
Germán Ranftl: We are also planning additional projects for 2026, including replacement of Newbery Substation with the new facilities and the interconnection of the Colegiales Substation, both planned for April of next year. We are planning a new substation in Moreno and an expansion of the Bancalari Substation late in the year. We also continue to work to transform our network into a smart network by installing increasing number of remote control points, tele-supervision points, as well as smart meters. This allows us to quickly resolve problems that arise in the network remotely, which we do by isolating any part of the system experiencing a service problem and reestablish the service very quickly. We can very often do this without sending team physically to the locations, which can enable the service to be reestablished within a few minutes. Operating indicators. Now, let's look at a few of the key operating indicators.
We also continued to work to transform our network in a smart network by insulating increasing number of remote control points supervision.
Points as well as smart meters.
This allow us to quickly resolve problems separates in the network remotely, which we do by isolating any part of the system experience a serious problem and reestablish the service very quickly we can ultimately do this without 17.
Team physically to the locations, which can enable the service to be reestablished within a few minutes.
Operating indicators.
Now, let's look at a few of the key operating indicators energy losses, our energy losses for the 12 months were $15, 69% up a bit from 15, 18% at the end of September 25.
But below the 19.
Percent of registered in 2019 reviews and energy losses is a top priority in our multi disciplinary teams are working constantly to find innovation ways to combat LNG losses. These efforts are completely complemented by our market discipline initiatives that are aimed.
Germán Ranftl: Energy losses. Our energy losses for the 12 months were 15.69%, up a bit from 15.18% at the end of September 2025, but below the 19% registered in 2019. Reducing energy losses is a top priority, and our multidisciplinary teams are working constantly to find innovative ways to combat energy losses. These efforts are complemented by our market discipline initiatives that are aimed at curbing inefficiencies and irregularities. Also, analytical tools powered by artificial intelligence have improved inspection efficiencies, and our market discipline actions continue to detect and rectify irregular connections. It is important to remember that of the 15.69% total losses, a full 9.61% are losses recognized by the regulatory entity in our tariff. Quality of service.
At Kirby inefficiencies and irregularities also analytical tools powered by artificial intelligence have improved inspection efficiencies under our market discipline actions continue to detect and rectify irregular connections. It is important to remember that up to a $15, 69% total losses.
Our full of $9, 61% or loss is recognized by the regulatory agency in our targets.
Quality of service.
As mentioned earlier, our investment plan is continuing to.
Contribute.
To improvements in our service quality by reducing the duration and frequency of outages, which has been a downward path. Since 2017. These levels are and have been comfortably exceeding the levels required by the regulatory related or sorry.
Germán Ranftl: As mentioned earlier, our investment plan is continuing to contribute to improvement in our service quality by reducing the duration and frequency of outages, which have been a downward path since 2017. These levels are and have been comfortably exceeding the levels required by the regulator. For Q4, the SAIDI and SAIFI service quality indicators show continued strong performance at 6.91 hours and 2.96 average outages per client, at a record low levels and down 75% and 67%, respectively, compared to 2017 levels. This recovery in service is mainly due to the strong and consistent levels of investment that the company has been made for the last nine years. Investment have been focused on implementing improvements in operation processes and adoption of technology applied to operations and management of the network. Financial debt. In 2025, in November, we raised $201 million in the Class 7 corporate bond additional.
For the fourth quarter, the Saidi and SAIFI service quality indicators show continued strong performance at $6 91 hours and $2 96 average outages per client at a record low levels.
70, 567%, respectively compared to 2017 levels this recovery and services, mainly due to the strong and consistent levels of investment that the company has been made for the last nine years investment has been focused on implementing improvements in operational processes and.
Adoption of technology, <unk> technology applied to operations as management of the network.
<unk> debt.
In 2025 in November we raised to $201 million in the class seven.
The plus seven.
Corporate bonds addition, additional this brought our total debt outstanding including notes plus loans as of December 31, 2025 of $782 million.
Net debt was $657 million in February of 2026, we issue, an additional $90 million and plus 7%.
Germán Ranftl: This brought our total debt outstanding, including notes plus loans, as of 31 December 2025, of $782 million. Net debt was $657 million. In February 2026, we issue an additional $90 million in Class 7. On 2 March 2026, we fully prepaid senior notes Class 8 by approximately $80 million. A key positive over the last few years, which continues in 2026, has been improved in our debt ratings in recent years. With the improvement in our risk profile due to important changes in the regulatory front, as mentioned before, Standard & Poor's raised its local scale rating from triple B minus to A plus, with a stable outlook. Since September 2024, credit ratings agencies have upgraded both national and global ratings by an average of 4 to 5 notches. Final remarks. We remain highly optimistic about our future.
And on March two we fully repaid senior notes plus eight.
Approximately $80 million.
A key positive over the last few years, which continues in 2000 <unk> has been improved in our debt ratings in recent years with improvement in our risk profile due to important changes in the regulatory front as I mentioned before some of our enforce risk local scale rating.
From Triple B minus two.
A plus with a stable outlook.
Since September of 2024 Grand ratings agents have upgraded both national and global ratings by an average of four to five <unk>.
Final remarks, we remain highly optimistic about our future results have benefited significantly from the target from a monetization and the completion of the five year tariff review with rice.
Rice rising 110%.
To 572 billion pesos equivalent for the full year of 2025 EBIT, Excluding the commission impact EBITDA was up 13% to $345 billion millions of dollars. The overall improvement has underpinned our improvement in that.
Germán Ranftl: Results have benefited significantly from the tariff normalization and the completion of the five-year tariff review, with EBITDA rising 110% to ARS 572 billion for the full year of 2025. Even excluding the CAMMESA impact, EBITDA was up 30% to $345 million. The overall improvement has underpinned our improvements in debt ratings and working capital. This also enabled us to continue our investment program with positive results in our key operating indicators. With the regulation of our debt with CAMMESA, all outstanding balances are now included in the three payment plans that we paid over 72 and 66 installments, and with a two plan with interest of 50% of the CAMMESA interest rate.
<unk> ratings on working capital, but it's also enabled us to continue our investment program with positive results in our key operating indicators with the relation with the regulation of our debt, which commits us all outstanding balance are now included in the three payment plans that we paid over 72% and 66 installments.
And we've got to plan with the interest of 50% of the <unk>.
<unk>.
Interest rates and an order file a claim of regulatory asset calculated by independent third parties and the secretary of energy is already analyzing this claim.
Our diversified financial strategy has also enabled us to have consistent access to local and international capital markets. Finally, I would like to take you mentioned that we remain committed to.
Germán Ranftl: EDENOR filed a claim of regulatory asset calculated by independent third parties, and the Secretary of Energy is already analyzing this claim. Our diversified financial strategy has also enabled us to have consistent access to local and international capital markets. Finally, I would like to mention that we remain committed to look for opportunities that take advantage of our enormous changes taking place in Argentina and in the global energy markets. In 2024, the company's corporate purpose was amended to provide greater flexibility and to capture opportunities related to the energy transition and electrification of the economy. With this now, we would like to open the call for questions. To ask the questions, please send written message to IR Edenor through the questions and answers menu, identify yourself, and stating that you have a question. We thank you again for your support and your engagement as shareholder and bondholder.
For opportunities to take advantage of our enormous changes taking place in Argentina and in the global energy markets in 2020 for the company corporate purpose was amended to provide greater flexibility and to capture opportunities related to the energy transition and electricity electrification of the economy.
With this now we would like to open the call for questions to ask questions. Please send written message to IR and endure through the questions and answers menu identify yourself on seating, but do you have a question. We thank you again for your support.
And your engagement, our shareholders and bondholders.
There is no question.
Yes.
Yes.
Okay.
Yes.
Thank you.
For agenda item five we invested a total of 395 billion pesos or $263 million. This was higher than what we have expected given that some spending for 2006 2020, perhaps move to 40 in 2025% as a result.
[Analyst]: There is a question from Andres Sigmiliano from Balanz. Could you tell us how much do you estimate your CapEx expense will be during 2026?
Germán Ranftl: For 2025, we invested a total of ARS 395 million or $263 million. This was higher than what we have expected, given that some spendings for 2026 have moved forward in 2025. As a result, 2026 spending could be somewhat lower, and we anticipate it to be in the range of $170 to $180 million. However, over time, we expect our CapEx program will remain robust, with projected spendings at the same range. Thank you for participating in our quarterly conference call, and please do not hesitate in contact us or our investor relations department for any further inquiries you may have. Good morning to all of you, and have a nice day.
Turning to the six spending could be some somewhat lower than we anticipated.
And in a range of 170 $180 million. However over time, we expect our Capex program will remain robust with projected spending at the same range.
Thank you for participating in our quarterly conference call and please do not hesitate in contact us or <unk>.
Our Investor Relations Department for any further inquiries you may have good morning to all of you and have a nice day.
