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Centrais Elc Braz Pfb B Elbras (EBR.B)
NYSE:EBR.B
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Centrais Elc Braz Pfb B Elbras (EBR.B) AI Stock Analysis

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EBR.B

Centrais Elc Braz Pfb B Elbras

(NYSE:EBR.B)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$12.00
▲(12.78% Upside)
The overall stock score of 75 reflects strong financial performance and positive technical indicators. The earnings call provided confidence in the company's strategic direction, despite some valuation concerns. The attractive dividend yield further supports the stock's appeal.

Centrais Elc Braz Pfb B Elbras (EBR.B) vs. SPDR S&P 500 ETF (SPY)

Centrais Elc Braz Pfb B Elbras Business Overview & Revenue Model

Company DescriptionCentrais Elétricas Brasileiras S.A. - Eletrobras, through its subsidiaries, engages in the generation, transmission, and distribution of electricity in Brazil. The company generates electricity through hydroelectric, thermal, nuclear, wind, and solar plants. As of December 31, 2021, it owned and operated 32 hydroelectric plants with a total installed capacity of 46,295.75 megawatts; nine thermal plants, including coal, and oil and gas power generation units with a total installed capacity of 1,505 megawatts; and two nuclear power plants comprising Angra I with an installed capacity of 640 megawatts and Angra II with an installed capacity of 1,350 megawatts. It also operates 66,556 kilometers of transmission lines. The company was incorporated in 1962 and is based in Rio de Janeiro, Brazil.
How the Company Makes MoneyEBR.B generates revenue primarily through the sale of electricity to its customers. The company's revenue model is built on several key streams, including residential and commercial electricity tariffs, which are regulated by government authorities. Additionally, the company may benefit from long-term contracts and agreements with industrial clients that provide a stable income. Significant partnerships with governmental bodies and other energy providers can also enhance its market position and contribute to earnings. Furthermore, investments in renewable energy projects may open up additional revenue streams as the demand for sustainable energy solutions increases.

Centrais Elc Braz Pfb B Elbras Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a company that is successfully navigating post-privatization challenges, with significant improvements in debt reduction, dividend payouts, and investment growth. However, regulatory adjustments and external market challenges such as GSF and liquidity issues present ongoing hurdles.
Q2-2025 Updates
Positive Updates
Reduction of Compulsory Debt
Eletrobrás reduced its compulsory debt from BRL 20 billion to under BRL 12 billion, demonstrating effective liability management.
Record Dividend Payout
The company announced a BRL 4 billion dividend payout, indicating strong financial performance and commitment to shareholder returns.
Increase in Generation Margins
Contributions from generation increased by 21% compared to Q1 2025 and 16% compared to Q2 2024, offsetting a drop in transmission revenue.
Significant Investment Growth
Investments grew by 116% versus Q1 2025, focusing on reinforcements and improvements, with a target of over BRL 4 billion for the year.
Successful Completion of Infrastructure Projects
Completion of the Caladinho project and financial rebalancing for Transnorte Energia, including extending the concession term from 17 to 27 years.
Negative Updates
Reported Loss Due to Regulatory Adjustments
Eletrobrás reported a loss of BRL 1.3 billion, primarily due to the regulatory remeasurement of transmission contracts.
Challenges with GSF and Liquidity
The challenging GSF scenario and liquidity constraints affected the company's ability to fully capitalize on the high energy prices.
Company Guidance
During Eletrobrás' earnings call for the second quarter of 2025, the company provided guidance on several key metrics and strategic initiatives. CEO Ivan de Souza Monteiro highlighted the reduction of compulsory debt from BRL 20 billion to under BRL 12 billion and the announcement of a BRL 4 billion dividend payout. The company also reported a 21% increase in generation margins compared to Q1 and a 16% increase versus Q2 2024, despite a drop in transmission revenue. Investments grew significantly by 116% from the first quarter of 2025. Eletrobrás' net income adjusted for regulatory remeasurement would have reached BRL 1.4 billion, marking a 40% increase from the previous year. The company's energy trading strategy contributed BRL 1.6 billion in contribution margins for the second quarter. Additionally, they discussed the completion of significant projects like the Coxilha Negra Wind Farm and the Transnorte Energia transmission line. Moving forward, Eletrobrás aims to consolidate these initiatives, with a focus on increasing predictability, improving capital allocation, and continuing modernization efforts leveraging new technologies.

Centrais Elc Braz Pfb B Elbras Financial Statement Overview

Summary
Centrais Elc Braz Pfb B Elbras demonstrates strong profitability with high gross and net profit margins, stable balance sheet, and positive cash flow growth trends. However, there is room for improvement in returns on equity and cash conversion efficiency.
Income Statement
78
Positive
The company shows strong profitability with a high gross profit margin of 82.99% and a solid net profit margin of 23.16% in the TTM period. Revenue growth is positive at 4.31%, indicating steady growth. However, there is a slight decline in EBIT and EBITDA margins compared to the previous year, suggesting some pressure on operational efficiency.
Balance Sheet
72
Positive
The balance sheet is stable with a moderate debt-to-equity ratio of 0.60, indicating a balanced approach to leverage. The return on equity is relatively low at 5.49%, suggesting room for improvement in generating returns from equity. The equity ratio is healthy, reflecting a strong equity base relative to total assets.
Cash Flow
65
Positive
Cash flow performance is improving with a significant free cash flow growth rate of 19.77% in the TTM period. The operating cash flow to net income ratio is moderate at 0.56, indicating a decent conversion of net income to cash. However, the free cash flow to net income ratio of 0.78 suggests some constraints in converting earnings into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.68B40.18B37.16B34.07B37.62B29.08B
Gross Profit35.97B34.23B18.49B18.22B25.66B15.65B
EBITDA17.26B20.73B11.81B9.07B14.08B11.33B
Net Income6.63B10.38B4.55B2.65B5.65B6.39B
Balance Sheet
Total Assets274.96B289.87B267.06B270.22B188.30B178.97B
Cash, Cash Equivalents and Short-Term Investments29.39B29.83B15.97B23.62B16.53B14.33B
Total Debt73.47B78.24B63.15B61.15B46.14B49.10B
Total Liabilities156.21B167.87B154.59B159.19B111.89B105.22B
Stockholders Equity118.71B121.86B112.33B110.50B76.12B73.48B
Cash Flow
Free Cash Flow13.65B9.29B4.12B-24.35B-10.92B1.80B
Operating Cash Flow16.13B12.39B8.24B9.28B-8.23B4.20B
Investing Cash Flow-1.66B-8.66B827.04M-28.80B123.99M2.44B
Financing Cash Flow-9.89B9.80B-6.76B30.07B-8.45B-6.69B

Centrais Elc Braz Pfb B Elbras Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.64
Price Trends
50DMA
9.58
Positive
100DMA
8.66
Positive
200DMA
7.97
Positive
Market Momentum
MACD
0.30
Positive
RSI
60.86
Neutral
STOCH
61.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBR.B, the sentiment is Positive. The current price of 10.64 is above the 20-day moving average (MA) of 10.41, above the 50-day MA of 9.58, and above the 200-day MA of 7.97, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 60.86 is Neutral, neither overbought nor oversold. The STOCH value of 61.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBR.B.

Centrais Elc Braz Pfb B Elbras Risk Analysis

Centrais Elc Braz Pfb B Elbras disclosed 61 risk factors in its most recent earnings report. Centrais Elc Braz Pfb B Elbras reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Centrais Elc Braz Pfb B Elbras Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$23.32B20.056.01%6.34%6.41%37.23%
73
Outperform
$23.36B18.936.01%6.24%6.41%37.23%
70
Neutral
$36.81B15.499.21%0.61%-0.27%-7.65%
69
Neutral
$6.01B29.356.36%2.87%10.23%114.67%
69
Neutral
$11.06B19.078.90%3.87%7.47%-8.53%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
62
Neutral
$19.64B4.2215.47%0.32%0.44%124.47%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EBR.B
Centrais Elc Braz Pfb B Elbras
10.64
3.97
59.52%
KEP
Korea Electric Power
15.22
7.04
86.06%
PCG
PG&E
16.40
-3.83
-18.93%
PNW
Pinnacle West Capital
92.12
7.40
8.73%
TXNM
TXNM Energy
56.80
14.34
33.77%
EBR
Centrais Eletricas Brasileiras SA - Eletrobras
10.01
3.89
63.56%

Centrais Elc Braz Pfb B Elbras Corporate Events

Eletrobras Rebrands to AXIA Energia, Embracing a New Corporate Identity
Oct 22, 2025

On October 22, 2025, Eletrobras announced its rebranding to AXIA Energia, marking a significant transformation in its corporate identity. This change, which reflects the company’s commitment to financial discipline and operational excellence, is part of a broader transformation process initiated in 2022. The rebranding will see the company’s shares traded under new tickers on B3 and NYSE starting November 10, 2025, with no changes to contractual or regulatory commitments. This initiative underscores AXIA Energia’s vision of driving sustainable economic development in the energy sector.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Approves Sale of EMAE Shares to SABESP
Oct 20, 2025

On October 2, 2025, the Board of Directors of Eletrobras convened to approve the sale of its entire 40.21% equity interest in EMAE to SABESP at a price of R$ 32.07 per share. This decision is part of a strategic move to streamline operations and potentially enhance financial flexibility. The resolution was passed unanimously, although some directors abstained due to conflicts of interest. This sale could impact Eletrobras’s market positioning by allowing it to focus on its core operations while potentially affecting stakeholders involved in the transaction.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobrás Files October 2025 SEC Report Highlighting Financial Strategies
Oct 15, 2025

On October 15, 2025, Eletrobrás filed a report with the Securities and Exchange Commission, signed by Eduardo Haiama, Vice-President of Finance and Investor Relations. The filing, under the Securities Exchange Act of 1934, highlights the company’s adherence to regulatory requirements and provides insights into its financial and investor relations strategies. The report also contains forward-looking statements, reflecting management’s expectations and potential risks affecting the company’s operations, including economic conditions, regulatory changes, and environmental factors.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Settles R$ 700 Million Debenture Issuance
Oct 10, 2025

On October 9, 2025, Eletrobras announced the settlement of a public offering related to the 8th issuance of simple debentures by its subsidiary, Eletronorte. The issuance, totaling R$ 700 million, is part of the Eco Invest Brasil Program and benefits from tax incentives. The debentures, targeted at professional investors, are non-convertible and unsecured, with Eletrobras acting as guarantor. This financial maneuver is expected to strengthen Eletrobras’s financial position and support its strategic initiatives in the energy sector.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Finalizes Divestment of Thermal Assets
Oct 9, 2025

On October 9, 2025, Eletrobras completed the divestment of its last thermal asset, the Santa Cruz Thermal Power Plant, to J&F S.A., marking the end of its thermal power operations. This transaction, which included a total receipt of R$ 3.6 billion from the sale of various thermal assets, aligns with Eletrobras’ strategic plan to focus exclusively on renewable energy sources, thereby enhancing its market positioning and commitment to sustainability.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Awaits Court Decision on Compulsory Loan Review
Oct 9, 2025

On October 8, 2025, Eletrobras announced that the First Panel of the Superior Court of Justice (STJ) accepted a proposal to begin a partial review of Repetitive Themes No. 65, 66, and 67, concerning the statute of limitations for ancillary interest on the monetary adjustment of a compulsory loan on electric power. The court has not yet made a final decision, and the potential impacts on the company will only be clear once the judgment is concluded.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Sells Stake in EMAE to SABESP for R$476.5 Million
Oct 6, 2025

On October 5, 2025, Eletrobras announced the sale of its entire equity interest in Empresa Metropolitana de Águas e Energia S.A. (EMAE) to Companhia de Saneamento Básico do Estado de São Paulo (SABESP) for R$476.5 million. This transaction, which includes potential future earnout payments, aligns with Eletrobras’ strategic plan to simplify its corporate structure and enhance capital allocation efficiency.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Approves R$ 700 Million Debenture Issuance for Infrastructure Expansion
Sep 29, 2025

On September 25, 2025, Eletrobras held its 1,075th Board of Directors meeting, where it approved Eletronorte’s eighth issuance of simple debentures worth R$ 700 million. This issuance is aimed at professional investors and will fund the construction, operation, and maintenance of electric power transmission facilities in the Amazon and Roraima states, enhancing the company’s infrastructure and market positioning.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Approves R$ 700 Million Debenture Issuance for Eletronorte
Sep 26, 2025

On September 26, 2025, Eletrobras announced that its subsidiary, Eletronorte, received approval from the Board of Directors for its 8th issuance of simple debentures, amounting to R$ 700 million. These debentures, benefiting from tax incentives under Law No. 12,431/2011, will mature on September 15, 2035, and are part of the Eco Invest Brasil Program. The issuance aims to attract professional investors and is guaranteed by Eletrobras, enhancing its financial strategy and market positioning.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Launches Manaus–Boa Vista Transmission Line
Sep 23, 2025

On September 16, 2025, Eletrobras commenced commercial operations of the Manaus–Boa Vista Transmission Line, integrating the State of Roraima into Brazil’s National Interconnected System. The project, involving a R$ 3.3 billion investment, is expected to reduce CO₂ emissions by approximately 280 thousand tons annually. The completion of this 724 km transmission line underscores Eletrobras’ capability to execute large-scale infrastructure projects and its commitment to shareholder value, with the concession running until 2051.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Maintains BB Rating with Stable Outlook
Aug 28, 2025

On August 28, 2025, Eletrobras announced that S&P has maintained its global credit rating at BB with a stable outlook. This reaffirmation highlights the company’s progress in operational efficiency, reduction of contingencies, and organizational simplification, along with the approval of a Settlement Agreement with the Government.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Projects Peak Leverage in 2025 Amid Major Investments
Aug 28, 2025

Eletrobras announced that its leverage is expected to peak in 2025 due to significant investments and dividend payments, with a gradual reduction anticipated from 2026 onward. The company is investing around R$12 billion annually in 2025-2026 to enhance its transmission networks and new projects, aiming for additional revenues. Despite high interest rates and negative free operating cash flow, Eletrobras maintains a strong cash position and plans to manage liabilities through market opportunities. The company is also focusing on improving operational efficiency and settling contingent liabilities post-privatization, which should support margin growth and leverage reduction in the coming years.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Approves R$4 Billion Interim Dividends
Aug 19, 2025

On August 6, 2025, the Board of Directors of Eletrobras held its 1071st meeting, where they approved the distribution of interim dividends totaling four billion reais. This decision, reflecting the company’s strong financial position, involves using part of the statutory reserve balance as of June 30, 2025. The dividends will be distributed per share class, contributing to shareholder value and demonstrating Eletrobras’s commitment to returning profits to its investors.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.50 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Eletrobras Takes Precautionary Measures at Colíder Hydroelectric Plant
Aug 15, 2025

On May 30, 2025, Eletrobras completed the acquisition of the Colíder Hydroelectric Power Plant from Copel, located on the Teles Pires River in Mato Grosso. The plant, representing 0.5% of Eletrobras’ total assets with a capacity of 300 MW, was initially classified under the ‘ATTENTION’ level for dam safety. Following a series of incidents involving the plant’s drainage system, Eletrobras, advised by external experts, decided to lower the reservoir level and elevate the safety status to ‘ALERT’ as a precautionary measure. These actions are part of Eletrobras’ commitment to maintaining safety standards and ensuring transparent communication with stakeholders.

Eletrobrás Earnings Call: Debt Reduction and Growth
Aug 12, 2025

The recent earnings call of Centrais Elc Braz Pfb B Elbras revealed a mixed sentiment, with both positive strides and notable challenges. The company showcased its commitment to financial stability through significant debt reduction and robust dividend payouts. However, the financial loss and ongoing GSF scenario posed challenges that tempered the overall outlook.

Eletrobras Addresses Recent Share Price Fluctuations
Aug 7, 2025

On August 7, 2025, Eletrobras addressed a request from B3 – Brasil, Bolsa, Balcão regarding recent atypical fluctuations in the trading of its preferred shares. The company clarified that it is unaware of any undisclosed material facts or information that could explain these movements. Eletrobras reiterated its commitment to transparency and keeping stakeholders informed in compliance with regulations.

Eletrobras Reports Strong 2Q25 Results with Strategic Investments and Dividends
Aug 7, 2025

Eletrobras reported its second quarter 2025 financial results, highlighting positive impacts from energy sales and reduced operational expenses. The company declared R$ 4,000 million in dividends, reflecting its commitment to financial discipline. Key achievements included a significant increase in generation contribution margin, reduced compulsory loan provisions, and substantial investments in transmission projects. Eletrobras also completed acquisitions and sales that enhanced its portfolio, and raised R$ 2 billion through a debenture issuance. The company experienced a 24% increase in energy trading clients, indicating growth in its market presence.

Eletrobrás Files SEC Report Highlighting Future Risks
Aug 7, 2025

On August 7, 2025, Centrais Elétricas Brasileiras S.A. – Eletrobrás filed a report with the Securities and Exchange Commission, signed by Eduardo Haiama, the Vice-President of Finance and Investor Relations. The report includes forward-looking statements reflecting management’s expectations and beliefs, highlighting potential risks and uncertainties in the economic, regulatory, and environmental landscape that could impact the company’s operations and financial performance.

Eletrobras Approves R$ 4 Billion Dividend Distribution
Aug 7, 2025

On June 10, 2025, Eletrobras announced that its Board of Directors approved the distribution of R$ 4 billion in interim dividends. This decision, based on the financial statements as of June 30, 2025, will see payments made on August 28, 2025, with specific amounts allocated per share class. This move aligns with Eletrobras’s capital allocation strategy, emphasizing financial discipline and shareholder value creation.

Eletrobrás Files SEC Report Highlighting Future Risks and Expectations
Jul 30, 2025

On July 30, 2025, Centrais Elétricas Brasileiras S.A. – Eletrobrás filed a report with the Securities and Exchange Commission, signed by Eduardo Haiama, the Vice-President of Finance and Investor Relations. The report includes forward-looking statements that reflect the company’s management’s expectations and beliefs, highlighting potential risks and uncertainties such as economic conditions, interest rate fluctuations, and regulatory changes. These statements emphasize the company’s cautious approach to future projections and the importance of considering various factors that may impact its operations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025