Iberdrola's Brazilian unit Neoenergia posts 45% profit drop in Q2 2026

Neoenergia, the Brazilian electricity subsidiary of Spanish giant Iberdrola, announced a significant 45% decrease in net profit for the second quarter of 2026, reporting 900 million reais (approximately $177 million) in earnings attributable to controllers. This decline is compared to the same period in the previous year.

The company explained that the reduced profit stems from an exceptionally strong performance in the second quarter of 2025. That period benefited from a one-time, non-recurring event: the recognition of credits related to the improper collection of taxes. Despite the profit dip, Neoenergía managed to increase its operational cash flow, or Ebitda, by 6% to 2.743 billion reais ($540 million) in the recent quarter.

Operational expenses remained largely under control, showing only a 1% increase compared to the prior year. Neoenergía continued its investment strategy, allocating 2.095 billion reais ($413 million) in the second quarter, with a substantial portion, 1.984 billion reais ($391 million), directed towards its distribution segment. The company's total energy injected grew by 3% during April to June this year, reaching 22,653 gigawatts. Furthermore, Neoenergía expanded its customer base, ending June with 17.2 million clients, a 2.1% year-on-year increase. The company is a major player in Brazil's electricity sector, operating in generation, transmission, distribution, and commercialization across 18 states.