AXIA Energia S.A. (NYSE: AXIA)

AXIA Energia S. A. is a publicly traded company engaged in the generation, transmission, and commercialization of electricity in Brazil. It operates through three regional subsidiaries and 65 special purpose entities (SPEs), including one outside Brazil, all focused on electricity generation and transmission. As of December 31, 2025, the company accounted for approximately 17% of Brazil's total installed generation capacity and 37% of installed transmission lines above 230 kV in the country. AXIA Energia S. A. is the largest power generation and transmission company in Brazil according to data from ANEEL and the ONS.

The company generates revenue primarily from electricity generation and transmission services. Revenue from generation comes from the sale of electricity produced by hydroelectric, wind, and solar power plants, with hydroelectric being the dominant source. Transmission revenue is derived from the Annual Permitted Revenue (RAP) set by ANEEL for transmission assets, which covers investment, operation, and maintenance costs. Additionally, the company earns income from energy commercialization in both the Regulated Market and the Free Market, including bilateral contracts and auction sales. Net operating revenue from generation accounted for 60.4% of total net operating revenue before eliminations in 2025, while transmission contributed 42.4% for the same year.

The company operates through the following segments: Generation and Transmission.

• The Generation segment includes the operation of hydroelectric, wind, and solar power plants across Brazil. As of December 31, 2025, the total installed generation capacity was 43,872.3 MW, with 43,072.7 MW from hydroelectric plants, 798.7 MW from wind farms, and a smaller capacity from solar plants. The segment also includes participation in SPEs for generation projects, with 67% of capacity from wholly owned assets and 33% from SPEs. Hydroelectric plants supplied the majority of electricity generated, accounting for 97.1% of total power output in 2025.

• The Transmission segment involves the ownership and operation of high-voltage transmission lines and substations across Brazil. As of December 31, 2025, the company operated approximately 74,769.43 km of transmission lines, including assets through SPEs. Of this, 70,238.28 km were at voltage levels of 230 kV or higher, representing 37% of the National Interconnected System. Transmission revenue is based on the RAP approved by ANEEL, which was R$16.5 billion as of December 31, 2025. The segment includes SPEs for transmission projects, with ownership stakes varying by project.

AXIA Energia S. A. holds a leading position in Brazil's electricity sector as the largest generator and transmitter of electricity. It accounts for 17% of the country's installed generation capacity and 37% of high-voltage transmission lines. The company benefits from a diversified renewable generation portfolio, with 100% of its installed capacity coming from low greenhouse gas emission sources. Its competitive advantages include scale, geographic footprint, and operational experience in hydroelectric generation, which remains its most cost-efficient energy source.

The company serves a diverse customer base including distribution concessionaires, free consumers, self-producers, importers, and traders in the electricity market. As of December 31, 2025, it had a total portfolio of 875 clients, of which 780 were Free Market clients. Specific customer names are not disclosed in the filing, but the company supplies electricity to distribution companies through regulated auctions and engages in bilateral contracts with industrial and commercial consumers in the Free Market.