ISA Energia soars in profit due to accounting effects, and the recurring increase reaches 14%

In the third quarter of 2026, ISA Energia (ISAE4) reported a regulatory profit of R$1.905 billion, which represents a jump of 246.3% compared to the R$550 million recorded in the same period of 2025, according to Exame. The numbers are impressive, but most of them result from a recorded gain that does not reach the transmitter's cash flow.

According to an investigation by Money Times, this gain arose when the company dissolved shareholdings with Axia Energia (AXIA3), and was recorded as extraordinary income. In other words, the change in the corporate structure inflated the result only on paper, without injecting new capital into the company. That was why ISA decided not to include this amount in the calculation of dividends, according to Exame.

By removing the extraordinary effect, the panorama becomes more moderate. Pro-forma profit reached R$625 million, rising 14%, according to Money Times. Total Ebitda reached R$3.19 billion, an increase of 259%, while pro-forma Ebitda reached R$1.25 billion, an expansion of 41%, according to Exame.

Exame credits the recurring evolution to three reasons: the entry of transmission works and substations, the adjustment of tariffs and discipline in spending. The executives interviewed by Money Times pointed to the operation of new lines and substations, in addition to the incorporation of a large asset, as responsible for the good moment.

The key is to interpret the result accurately. A profit increased by accounting gains may suggest an improvement that cash does not yet support. By leaving this gain out of the earnings base, the company shows that it distinguishes the accounting from the distributable, and this is a criterion that the investor needs to follow.

Impacts for those who invest

Anyone who has a position in ISAE4 must, first of all, separate the main number from the cash generation that actually supports the business. The recurring metrics, with pro-forma profit growing 14% and pro-forma EBITDA 41%, offer the most reliable reading on the operation. The 246% increase in regulatory profit requires caution, as it is not converted into cash. Furthermore, the decision to remove the gain from the dividend calculation indicates that the transfers must follow operational performance, and not accounting. The available information does not contain anything about quotations or market reaction, so the final effect will depend on how investors read the difference between accounting and recurring profit.

Automatically translated from Portuguese.