EDN

EDENOR Form 6-K Summary: Fourth Quarter 2025 Results

Business Context and Reporting Period

Company: Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR)

Reporting Period: Fourth Quarter ended December 31, 2025 (4Q25) and Full Year 2025.

Business Overview: Edenor is Argentina's largest electricity distributor by customer count and energy sales, serving approximately 3.39 million customers in the northwest of Greater Buenos Aires and northern Buenos Aires City. The filing reports results prepared under IFRS, with figures stated in Argentine Pesos (ARS) on a constant currency basis.

Key Financial Metrics

Note: Full year 2024 comparison figures for Net Income and CAPEX are not explicitly provided in the text, though EBITDA and Revenue comparisons are available.

Material Changes vs. Prior Period

• Profitability Turnaround: The company returned to profitability in 4Q25 with a net profit of ARS 45.7 billion, reversing a net loss of ARS 21.4 billion in 4Q24. This shift was driven by tariff adjustments and increased RECPAM (regulatory compensation).
• Revenue Growth: 4Q25 revenues rose 4% in constant currency vs. 4Q24, while full-year 2025 revenues increased 11% vs. 2024. Growth was fueled by a 319.2% tariff adjustment in February 2024 and subsequent monthly adjustments averaging 3.1% since August 2024.
• EBITDA Expansion: Full-year 2025 EBITDA surged 110% to ARS 572 billion. Excluding a one-time ARS 218 billion gain from the CAMMESA debt regularization, organic EBITDA grew 30% year-over-year.
• Cost Management: Operating expenses decreased 6% in 4Q25 due to efficiency improvements, an 81% reduction in material/inventory usage, and a 23% drop in professional fees.
• Debt Reduction: Net financial results for the full year decreased 38% due to lower outstanding debt and reduced interest expenses related to CAMMESA.

Guidance, Outlook, and Risks

• Regulatory Framework: A 5-Year Integral Tariff Review (2025-2030) was approved, establishing automatic monthly adjustments of 0.42% above inflation (CPI 33% + IPM 67%).
• Regulatory Asset Claim: Edenor filed a claim for a "regulatory asset" calculated by independent third parties, which is currently under analysis by the Secretary of Energy.
• Operational Outlook: The company expects continued improvements in service quality (SAIDI and SAIFI) driven by investments in technology and network modernization. Energy losses (LTM) stood at 15.7%.
• Investment Plan: Edenor is executing a robust investment plan focused on the energy transition, including new substations and smart meter installations (8,156 smart meters installed in 2025).
• Risks and Contingencies:
  • Forward-Looking Statements: The filing contains forward-looking statements subject to risks and uncertainties, including inflation, regulatory changes, and economic conditions in Argentina.
  • Dividend Risk: Management cautioned that if actual results are less favorable than projections, Edenor may not be able to make dividend payments in forecasted amounts or at all.
  • Fraud and Losses: Despite improved inspection efficiency (46.3% in 4Q25 vs. 43.0% in 4Q24), repeat fraud cases persist.

Key Facts for Investor Verification

• Tariff Sustainability: Verify the stability of the 5-Year Tariff Review and the implementation of automatic inflation-linked adjustments.
• CAMMESA Regularization: Confirm the status of the debt regularization payment plan (72-75 monthly installments) and the finalization of the "regulatory asset" claim.
• Debt Structure: Note the recent refinancing activity: Class 7 Notes reopened in Feb 2026 (adding USD 90M) and Class 8 Notes fully precancelled in March 2026.
• Operational Efficiency: Monitor the trend in energy losses (currently 15.7% LTM) and the effectiveness of fraud mitigation strategies.
• Currency Exposure: Assess the impact of Argentine Peso volatility on USD-denominated debt service and constant currency reporting.