CEPU — Central Puerto S.A.

Summary of Central Puerto's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• 2025 Revenues: $782.8 million, a 17% increase year-over-year.
• Q4 2025 Revenues: $172.8 million, a 26% decrease quarter-on-quarter but a 3% increase year-on-year.
• 2025 Adjusted EBITDA: $337.2 million, up 17% year-over-year.
• Q4 2025 Adjusted EBITDA: $84.7 million, down 16% quarter-on-quarter but up 30% year-on-year.
• Total Generation: 18.6 terawatt hours, a 14% decrease year-over-year, primarily due to low hydrology at Piedra del Aguila.
• Net Leverage Ratio: 0.3x annual adjusted EBITDA as of December 2025.

2. Strategic Updates and Business Highlights

• The company has strengthened its market position, achieving 14% market share of total SADI generation.
• Significant projects included the completion of the Brigadier Lopez combined cycle and the San Carlos solar farm, adding 15 megawatts of renewable capacity.
• Extended the concession for the Piedra del Aguila hydroelectric facility through 2055, with a payment of $245 million due in January 2026.
• Focus on battery energy storage systems, with plans to add 205 megawatts by 2027.
• 97% of revenues were U.S. dollar-denominated by December 2025, reflecting a shift towards stability in the wholesale power market.

3. Forward Guidance and Outlook

• Anticipated recovery in thermal generation due to reduced maintenance in 2026.
• Expected improvements in EBITDA driven by new PPAs, market normalization, and the new regulatory framework.
• Potential for additional revenues from new battery storage auctions and industrial demand, particularly from mining and oil sectors.
• The company aims to maintain operational excellence and discipline in contracting as it navigates the evolving market landscape.

4. Bad News, Challenges, or Points of Concern

• Q4 2025 EBITDA decline attributed to significant maintenance on key combined cycle plants, which limited revenue generation.
• Total generation volumes decreased significantly, with notable drops from both hydro and thermal sources due to maintenance and low water inflows.
• The transition to new PPAs with distribution companies is slow, and regulatory discussions are ongoing, creating uncertainty in capturing additional market share.
• Competitive pressures from both thermal and renewable sources are affecting pricing and contract negotiations.

5. Notable Q&A Insights

• Management acknowledged the Q4 EBITDA drop was primarily due to maintenance work on major combined cycle plants, which are now operational again.
• Discussions with distribution companies regarding new contracts are progressing but have not yet resulted in significant agreements.
• The company is exploring growth opportunities in battery storage and new thermal capacity, although market conditions are challenging.
• Management expressed cautious optimism about hydrological conditions improving in 2026 but noted the need for further data before making definitive forecasts.

Overall, Central Puerto reported solid growth in 2025 despite facing operational challenges and market pressures, positioning itself for potential recovery and expansion in 2026.