Central Puerto (CEPU) Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: $145 million, up 20.1% quarter-on-quarter and 136.2% year-on-year.

Revenues: $453.3 million, an increase of 82.3% from Q1 2026 and 165.8% from Q2 2025.

Total Generation: 5.25 thousand gigawatt hours, a 3.1% decrease from Q1 2026 but a 20.1% increase year-on-year.

Net Financial Leverage: 1.2x adjusted EBITDA, with net financial debt of $493.4 million.

Capital Expenditures: $421.9 million for H1 2026, including significant investments in battery storage and oil and gas assets.

2Strategic Updates and Business Highlights

Market Position: CEPU held over 35% market share in the Resolution 400 Term Market, serving 120 large industrial customers and 16 distribution companies.

Growth Projects: Battery storage projects are on schedule, with completion expected in Q4 2026, anticipated to contribute $25-$27 million to adjusted EBITDA in 2027.

Acquisition: Closed the acquisition of oil and gas blocks, with ongoing technical due diligence.

Commercial Strategy: Continued focus on securing Power Purchase Agreements (PPAs) and optimizing contracted sales.

3Forward Guidance and Outlook

Fuel Procurement: Expected to maintain similar levels of self-procured fuel in Q3 2026, with a potential decrease in Q4 due to regulatory constraints.

EBITDA Contribution: Battery storage projects expected to generate $25-$27 million in EBITDA annually once operational.

Future Opportunities: Anticipated government auctions for thermal and renewable projects, with CEPU planning to present projects for capacity increases.

4Bad News, Challenges, or Points of Concern

Generation Decrease: Total generation declined by 3.1% from the previous quarter, raising concerns about operational efficiency.

Regulatory Constraints: Ongoing reliance on CAMMESA for fuel procurement limits flexibility and could impact profitability in the fourth quarter.

Market Volatility: Fluctuating spot prices and seasonal demand could affect revenue stability, particularly in winter months.

5Notable Q&A Insights

Fuel Procurement: CEO Fernando Bonnet indicated that self-procurement levels may decrease in Q4 2026 due to regulatory constraints, with ongoing discussions for local gas procurement.

Growth Opportunities: CEPU is exploring various growth avenues, including battery projects, thermal capacity auctions, and energy provision for mining companies.

PPAs with Distribution Companies: Progress is being made towards signing new PPAs, though completion timelines remain uncertain. Overall, Central Puerto reported strong financial performance in Q2 2026, with significant growth in revenues and EBITDA. The company is focused on strategic growth initiatives while navigating regulatory challenges and market volatility.