EDN

EDENOR 2Q26 Earnings Summary (Form 6-K)

Business Context and Reporting Period

Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR), Argentina's largest electricity distributor, reported results for the second quarter ended June 30, 2026. The company serves 3.41 million customers in Greater Buenos Aires. Financial figures are presented in Argentine Pesos (ARS) on a constant currency basis in accordance with IFRS, except where noted as historical values. The reporting period marks the first full year following the implementation of the 2025–2030 tariff review (RQT).

Key Financial Metrics

Note: 2Q25 figures are derived from 6M25 and 1Q25 data where explicit 2Q25 totals were not directly stated in the summary text, or calculated based on reported variances.

Material Changes vs. Prior Period

• Revenue Growth: Total revenues increased 10% in 2Q26 compared to 2Q25, driven by tariff regularization and a 1.3% increase in the customer base to 3.41 million.
• Profitability Decline: Net income for 2Q26 was ARS 31.3 billion, a 75% decrease versus 2Q25. This decline is primarily attributed to a one-time gain of ARS 224.7 billion recorded in 2Q25 related to the settlement agreement with CAMMESA.
• EBITDA Performance: Reported EBITDA for 6M26 was ARS 313.7 billion (-19% vs 6M25). However, excluding the non-recurring CAMMESA settlement gain from the prior year, EBITDA increased by 94% year-over-year.
• Cost Management: Operating expenses decreased 6% in 2Q26 and 8% for the first six months of 2026, driven by lower material consumption (-39%) and reduced regulatory penalties (-24%).
• Financial Expenses: Net financial expenses dropped 28% to ARS 106.5 billion in 2Q26 due to debt regularization with CAMMESA.

Outlook, Risks, and Management Commentary

• Tariff Normalization: The company is benefiting from the 2025–2030 tariff review, with automatic monthly adjustments based on CPI (33%) and WPI (67%) plus 0.42% real growth. Accumulated Value Added Distribution (VAD) increased 20% vs. 17% inflation as of June 2026.
• Regulatory Asset: EDENOR filed a "Regulatory Asset" claim for outstanding balances. The Executive Branch has submitted a draft bill to Congress proposing a regularization framework, which is currently under analysis.
• Debt and Ratings: Total financial debt is approximately USD 1.159 billion. Credit ratings were upgraded: S&P raised the national scale rating to 'raAA-' (Stable), Fitch raised the long-term rating to 'AA-' (Positive), and Moody's upgraded the national scale to 'AA-.ar'.
• Capital Markets: In July and August 2026, the company issued new Senior Notes (Class 11 and Class 10 reopening) totaling USD 963 million to refinance debt and fund potential acquisitions, including a 70% stake in Metrogas.
• Operational Improvements: Service quality indicators reached historic lows: SAIDI (hours without service) at 5.6 (-48% vs 2021) and SAIFI (outages per client) at 2.7 (-34% vs 2021).
• Risks: Forward-looking statements are subject to risks including regulatory changes, inflation volatility, and the outcome of the Regulatory Asset claim. The filing notes that actual results may differ materially from projections.

Investor Verification Checklist

• CAMMESA Settlement Impact: Verify the exact composition of the 2Q25 one-time gain (ARS 224.7 billion) to accurately normalize year-over-year profitability comparisons.
• Regulatory Asset Status: Monitor the legislative progress of the draft bill regarding the regularization of the Regulatory Asset claim filed with the Secretary of Energy.
• Debt Maturity Profile: Review the specific maturity dates of the USD-denominated notes (ranging from 2026 to 2033) and the impact of the new issuances on the net debt profile.
• Metrogas Acquisition: Confirm the status of the binding offer submitted on July 23, 2026, to acquire 70% of Metrogas and 5% of MetroEnergia SA.
• Constant vs. Historical Currency: Distinguish between constant currency figures (used for operational analysis) and historical values (used for tax and statutory reporting) when assessing cash flow and equity.