Axia Energia is executing one of the largest transmission expansion programs in its portfolio, with 288 large-scale projects under implementation representing an estimated R$15.5 billion of capital expenditures and R$2 billion of additional Allowed Annual Revenue, or RAP, between 2026 and 2030.
The projects are expected to add approximately 2,332 kilometers of transmission lines and 20,616 MVA of substation capacity as Axia expands and reinforces its electricity transmission network.
Investment activity has already accelerated sharply. Axia invested R$3.117 billion during Q2, an increase of 53% year-over-year, bringing first-half investments to R$4.472 billion, up 47%. Transmission expansion investments increased to R$636 million from only R$85 million in the prior-year quarter.
Investments in transmission reinforcements and improvements totaled another R$1.073 billion during Q2. Axia also secured Lots 8, 9 and 10 in Transmission Auction No. 01/2026, which are expected to generate an additional R$50.8 million of RAP once commercial operations begin, with planned investment of R$668 million.
The board approved up to R$3.7 billion of capital available for allocation from Q2 results. Combined with the R$4 billion approved following Q1, Axia has made up to R$7.7 billion available for allocation based on first-half results.
Axia is simultaneously reshaping its existing portfolio. The company completed the sale of a 49% minority stake in transmission special-purpose entities for R$451.4 million and completed another portfolio transaction involving IE Madeira and IE Garanhuns that resulted in a net R$1.167 billion payment to Axia and the full consolidation of IE Garanhuns.
The company also acquired the remaining interests in Juno Participações e Investimentos, which holds a 50.1% interest in Tijoá Energia, for R$256 million. Following the transaction, Axia began fully consolidating the Três Irmãos Hydroelectric Power Plant.
Adjusted regulatory EBITDA increased 21.5% year-over-year to R$6.683 billion in Q2, supported by a 17.5% increase in generation contribution margin and a 64% decline in provisions. Adjusted IFRS net income was R$1.608 billion for the quarter.
Axia’s approved RAP for the 2026/2027 tariff cycle also increased 6.7%, while combined RAP and adjustment components increased 8.7% from the previous cycle.
