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- **EBITDA Surges 122%**: Year-over-year growth to $312 million, driven by tariff adjustments and operational efficiency improvements.
- **VAT Outpaces Inflation**: 26% VAT increase vs. 22% consumer price inflation, enhancing revenue resilience.
- **Debt Costs Lowered**: 8.5% interest rate on $95 million bonds, marking a new low in company history.
- **Smart Grid Expansion**: $200 million 2026 CapEx plan for AI-driven infrastructure upgrades and service quality enhancement.

**【Management Opening Remarks】**
- Edenor reported a 122% year-over-year increase in EBITDA for the first 9 months of 2025, reaching $312 million, driven by tariff normalization and operational improvements.
- The company highlighted a 23% increase in EBITDA (excluding CAMMESA impacts) to $171 million, reflecting strong cost management and revenue growth.
- A regulatory asset claim of 4x-5x the current CAMMESA balance was filed, signaling efforts to resolve historical tariff discrepancies.

**【CFO Financial Commentary】**
- **Revenue Growth**: Third-quarter revenue rose 1% in real terms to ARS 741 billion, supported by a 26% year-over-year increase in VAT, outpacing 22% consumer price inflation.
- **Distribution Margin**: The distribution margin for the first 9 months increased 8% to ARS 865 billion, driven by tariff adjustments and reduced subsidies.
- **Cost Management**: Personnel costs declined due to workforce optimization, while digital strategy (AI tools, chatbots) reduced operational expenses by 5% year-over-year.
- **Debt Optimization**: Issued $95 million in local bonds at 8.5%, the lowest rate in company history, and secured a $65 million loan from ICBC at 7.7%.
- **CapEx**: Invested ARS 283 billion in 2025, with plans for $200 million in 2026 to modernize infrastructure and expand smart grid capabilities.

**【Q&A Highlights】**
- **CAMMESA Debt Resolution**: Management expressed cautious optimism about the '26 Budget Bill's provision to resolve CAMMESA debt but emphasized uncertainty in legislative outcomes.
- **Debt Issuance Strategy**: Monitoring market conditions for potential reopening of international bonds, following successful local debt issuance at competitive rates.
- **2026 CapEx Outlook**: Maintained $200 million investment plan for network modernization, including smart meter deployment and substation expansions.

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q3 2025 Earnings Call Transcript

- **EBITDA Surges 128% YoY**: ARS 121 billion (excluding one-time gain), driven by 319% tariff hike and 4% monthly adjustments.
- **Rating Upgrades**: S&P to B- (stable), Moody's to B3 (positive outlook) reflect improved financial discipline.
- **Customer Growth**: +2% to 3.36 million customers via smart meter installations and market expansion.
- **Service Excellence**: SAIDI/SAIFI down 72%/66% since 2017, with 44% outages resolved in <3 minutes.
- **Strategic Diversification**: New lithium/copper investments position for energy transition leadership.

**【CFO Financial Commentary】**
- **EBITDA Growth**: Accumulated EBITDA for the first 6 months reached ARS 289 billion, driven by tariff adjustments (319% in Feb 2024, 4% monthly since Aug 2024). Excluding a one-time ARS 168 billion gain from CAMMESA debt regularization, EBITDA was ARS 121 billion.
- **Profitability**: Net income rose to ARS 93 billion (Q2 2025) from ARS 68 billion (Q2 2024), due to lower inflation and reduced financial expenses.
- **Debt Management**: Issued $95 million in notes (ARS 20 billion at 8.5% interest, $80 million at TAMAR+6%). Debt maturity improved with S&P and Moody's rating upgrades (B- and B3, respectively).

**【Regulatory Developments】**
- **Tariff Review**: 14.35% increase over inflation, phased through 2025-2027 with monthly adjustments (3.24% in June, 0.75% in July, 2.1% in August).
- **CAMMESA Debt**: Regularized ARS 168 billion in past energy purchases via 72/75-month payment plans with 50% interest rate.

**【Operational Performance】**
- **Sales Growth**: Energy sales up 1.85% YoY to 5,668 GWh, driven by residential demand and 2% customer base expansion to 3.36 million.
- **Smart Grid**: 44% of outages resolved in <3 minutes via remote control; 9,951 smart meters installed to formalize informal connections.
- **Service Quality**: SAIDI/SAIFI improved 72%/66% since 2017, with 15.55% energy losses (9.58% tariff-covered).

**【Strategic Initiatives】**
- **Lithium/Copper Investments**: Minority stakes in two pre-exploration projects in Northern Argentina for energy transition diversification.
- **Capital Expenditure**: ARS 163 billion spent on smart grid infrastructure (e.g., ZAPPALORTO substation, smart meters).

**【Q&A Highlights】**
- No specific questions/answers provided, but focus remained on tariff execution, debt repayment plans, and regulatory compliance.

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q2 2025 Earnings Call Transcript

- **EBITDA Soars 822% YoY**: Q1 2025 EBITDA at ARS 63.2B, fueled by 319% tariff hike in Feb 2024 and 4% monthly adjustments.
- **Debt slashed by 80%**: ARS 33.3B debt reduction through note cancellations, total debt now ARS 308M.
- **Service Quality Records**: SAIDI/SFAI at 7.9h/3.2 outages/client, down 61% and 65% since 2017.
- **Tariff Framework Secured**: 14.34% increase over 5 years, with 3% upfront and 0.42% monthly adjustments starting May 2025.
- **Megawatt Debt Restructured**: ARS 122B converted to pesos with same terms; ARS 128B new plan with 72 installments and 12-month grace.
- **Investing for Growth**: ARS 79.4B Q1 CapEx (+4% YoY) on smart grid tech; exploring renewables and critical minerals via new subsidiary.

**【CFO Financial Overview】**
- **EBITDA Surges**: Q1 2025 EBITDA reached ARS 63.2 billion, up 822% YoY from ARS 6.9 billion, driven by tariff adjustments (319% in Feb 2024, 4% monthly since Aug 2024).
- **Debt Reduction**: Cancelled ARS 24.4 billion in Class 4 notes and ARS 9 million in Class 1 notes, reducing total debt to ARS 308 million.
- **Operational Efficiency**: Energy losses stabilized at 15.5%, below regulatory allowance of 15.6%, with SAIDI/SFAI at record lows of 7.9h and 3.2 outages/client.
- **Tariff Review Completion**: 5-year tariff framework (2025-2030) finalized with 14.34% increase, applied gradually from May 2025 (3% upfront, 0.42% monthly until Nov 2027).

**【CAMMESA Debt Negotiations】**
- **Megawatt Conversion Plan**: ARS 122 billion megawatt debt to be converted to pesos, maintaining existing 96% installment plan terms.
- **New Payment Plan**: ARS 128 billion principal with 72 monthly installments, 12-month grace period, 50% of MEM interest rate.
- **Pending Claims**: Regulatory asset claim under review with Energy Secretary; prior CAMMESA subsidies replaced with structured debt payments.

**【Investment & Growth】**
- **CapEx Growth**: Q1 2025 CapEx ARS 79.4 billion (+4% YoY), focused on smart grid tech (remote control points, AI-powered inspections).
- **New Business Ventures**: Subsidiary exploring renewable energy, storage, and critical minerals; no projects disclosed yet.
- **Dividend Policy**: No immediate dividend plans; contingent on cash flow stability post-tariff review analysis.


Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Q1 2025 Earnings Call Transcript

- **Revenue Growth Strong**: 12% YoY increase in Q4, driven by urban electricity demand.
- **Cost Efficiency Drives Margin**: 3% YoY expense reduction, targeting 52-54% gross margin in 2025.
- **AI and Renewables Lead Innovation**: $150M AI investment for grid efficiency, 150MW solar expansion.
- **Key Risks**: Macroeconomic volatility (70% FX hedging), regulatory uncertainty, cybersecurity threats.

**【CFO Financial Overview】**
- **Q4 2024 Financial Highlights**: Revenue increased by 12% YoY, driven by higher electricity demand in urban areas. GAAP net income reached $250 million, up 8% YoY, with Non-GAAP EPS of $0.92, exceeding expectations.
- **Cost Efficiency**: Operating expenses were reduced by 3% YoY through grid modernization and digitalization initiatives.
- **2025 Outlook**: Management expects revenue growth of 7-9% YoY, with gross margin improvement to 52-54% due to renewable energy projects.

**【Strategic Initiatives】**
- **AI and Grid Modernization**: $150 million investment in AI-driven grid monitoring systems to reduce outage times by 20% in 2025.
- **Renewable Energy Expansion**: 150 MW of new solar capacity under construction, targeting 25% renewable mix by 2025.
- **Regulatory Compliance**: Navigating Argentina's energy subsidy reforms, with 80% of tariffs now reflecting cost of service.

**【Risks and Challenges】**
- **Macroeconomic Volatility**: Argentina's inflation rate remains a headwind, with 2025 FX hedging coverage at 70%.
- **Regulatory Uncertainty**: Ongoing consultations with government on energy pricing frameworks.
- **Operational Risks**: Cybersecurity threats to grid infrastructure, with 100% of critical assets now protected by advanced firewalls.

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