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Eletrobras Projects Peak Leverage in 2025 Amid Major Investments

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Eletrobras Projects Peak Leverage in 2025 Amid Major Investments

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An update from Centrais Elc Braz Pfb B Elbras ( ($EBR.B) ) is now available.

Eletrobras announced that its leverage is expected to peak in 2025 due to significant investments and dividend payments, with a gradual reduction anticipated from 2026 onward. The company is investing around R$12 billion annually in 2025-2026 to enhance its transmission networks and new projects, aiming for additional revenues. Despite high interest rates and negative free operating cash flow, Eletrobras maintains a strong cash position and plans to manage liabilities through market opportunities. The company is also focusing on improving operational efficiency and settling contingent liabilities post-privatization, which should support margin growth and leverage reduction in the coming years.

The most recent analyst rating on ($EBR.B) stock is a Buy with a $9.00 price target. To see the full list of analyst forecasts on Centrais Elc Braz Pfb B Elbras stock, see the EBR.B Stock Forecast page.

Spark’s Take on EBR.B Stock

According to Spark, TipRanks’ AI Analyst, EBR.B is a Outperform.

The overall stock score is driven by strong financial performance and positive technical indicators. The attractive valuation and positive earnings call sentiment further enhance the score. While regulatory challenges exist, the company’s strategic initiatives and financial health position it well for future growth.

To see Spark’s full report on EBR.B stock, click here.

More about Centrais Elc Braz Pfb B Elbras

Centrais Elétricas Brasileiras S.A., also known as Eletrobras, is Brazil’s largest electricity utility company. It operates with about 44 gigawatts of installed power generation capacity and over 74,000 kilometers of transmission lines, holding a significant market share in both sectors. The company focuses primarily on power transmission and generation, deriving more than half of its EBITDA from the stable regulatory regime of power transmission.

Average Trading Volume: 12,161

Technical Sentiment Signal: Strong Buy

Current Market Cap: $18.4B

For an in-depth examination of EBR.B stock, go to TipRanks’ Overview page.

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