Axia Energia (AXIA3), formerly known as Eletrobras, is entering a new phase following its privatization and corporate rebranding. The company has a strategically important position in Brazil’s electricity sector, with operations focused mainly on power generation and transmission.
This article examines some of the company’s main fundamental indicators in 2026, including P/E, P/B, EV/EBITDA, ROE, net margin, debt and recent financial results, while also discussing potential opportunities and risks.
Disclaimer: This article is for educational and informational purposes only. Financial indicators may change as share prices and company results are updated. Nothing in this article should be interpreted as a recommendation to buy or sell AXIA3.
Who is Axia Energia?
Axia Energia is one of Brazil’s largest electricity companies. Its operations include power generation and transmission, supported by a large infrastructure portfolio.
The company has undergone major structural changes following the privatization of the former Eletrobras. In 2026, it adopted the Axia Energia brand and continued working on simplifying its corporate structure and improving capital allocation.
For investors, the important question is not simply the company’s size. What matters is whether Axia can turn its infrastructure and assets into sustainable cash generation, improve operational efficiency and provide adequate returns to shareholders.
Axia Energia’s 2026 Results
The company’s first-half 2026 results showed significant improvement.
In 2Q26, Axia Energia reported approximately R$6.68 billion in EBITDA, representing a 21.5% increase compared with the second quarter of 2025. Adjusted net income reached approximately R$1.61 billion during the quarter.
For the first half of 2026, adjusted net income reached approximately R$5.31 billion, up 282% from the R$1.39 billion reported in the first half of 2025.
Capital expenditure also increased significantly.
Axia invested approximately R$3.12 billion in the second quarter, 53% more than in the same period of 2025. The company also reported 288 large projects under execution, with the potential to add approximately R$2 billion to annual allowed revenue, or RAP, between 2026 and 2030.
This may be relevant to the long-term investment thesis because transmission investments can increase the company’s regulated revenue base.
P/E Ratio: Does the Earnings Power Support the Share Price?
The price-to-earnings ratio, or P/E, is one of the most commonly used valuation metrics.
According to recent Fundamentus data, AXIA3 was trading at approximately 12.5 times earnings, based on financial information available through June 30, 2026.
In simple terms, this means investors were paying roughly 12.5 times the company’s accumulated earnings per share.
However, a P/E ratio cannot determine by itself whether a stock is cheap or expensive.
Investors should compare it with:
- companies in the same industry;
- the company’s historical valuation;
- expected earnings growth;
- earnings quality;
- debt levels;
- cash-flow generation.
Therefore, Axia’s P/E deserves attention, but it should not be considered in isolation.
EV/EBITDA: Is Axia Expensive?
The EV/EBITDA ratio compares enterprise value with operating earnings before interest, taxes, depreciation and amortization.
Fundamentus data indicated an EV/EBITDA ratio of approximately 15.1 times for AXIA3.
This figure requires careful interpretation.
EV/EBITDA can become distorted when a company’s earnings are going through a normalization process. Therefore, investors should not automatically classify a multiple as expensive or cheap without examining the quality and sustainability of EBITDA.
Some market analyses have used normalized EBITDA assumptions for Axia because accounting and operational effects can significantly influence reported multiples during a specific period.
The key question is:
Does current EBITDA represent the company’s sustainable earning power, or is it temporarily above or below normal levels?
That question is more useful than simply labeling an EV/EBITDA multiple as “good” or “bad.”
Price-to-Book Ratio
The price-to-book ratio, or P/B, is another relevant fundamental indicator.
Recent data showed AXIA3 trading at approximately 1.23 times book value, with book value per share around R$41.53.
This means the market was valuing the company above its accounting book value.
However, infrastructure companies require special consideration when using P/B. Transmission and generation assets may have economic characteristics that are not fully reflected by accounting book values.
Therefore, a P/B above 1 does not automatically mean that Axia is overvalued.
ROE: Return on Equity
Axia’s return on equity, or ROE, was approximately 9.9% according to the fundamental data used in this analysis.
This deserves attention.
A company can generate substantial profits while still reporting moderate ROE when it has a very large asset and equity base.
Axia’s enormous scale helps explain why profitability ratios should be analyzed together rather than individually.
Investors should monitor whether earnings and cash-flow growth are accompanied by a structural improvement in returns on invested capital and equity.
Net Margin
Axia’s net margin was approximately 27% based on the accumulated financial information through the second quarter of 2026.
At first glance, this is a strong margin.
However, the key question is:
How much of this profit is recurring?
This is one of the most important aspects of Axia’s fundamental analysis.
Infrastructure companies can be affected by regulatory, accounting, financial, tax and non-recurring events.
Therefore, investors should analyze not only net income, but also EBITDA, cash flow, capital expenditure and debt.
Debt: A Key Point to Monitor
Axia has a substantial capital structure.
Balance-sheet data processed through June 2026 showed approximately:
- R$70.97 billion in gross debt;
- R$26.23 billion in cash and equivalents;
- R$44.74 billion in net debt;
- R$122.24 billion in shareholders’ equity.
Net debt-to-equity was approximately 0.37 times.
This ratio does not appear excessive when compared with shareholders’ equity. Nevertheless, investors should closely monitor net debt relative to EBITDA because infrastructure companies may operate with significant leverage due to their capital-intensive business models.
The positive factor is Axia’s asset base and exposure to regulated and generation revenues.
The risk is that aggressive investment spending could eventually pressure the company’s financial structure.
Investment and Future Growth
One of the most interesting aspects of Axia’s 2026 story is its investment program.
The company invested R$3.117 billion in the second quarter, representing a 53% year-over-year increase.
Axia also reported potential additional annual allowed revenue of approximately R$2 billion between 2026 and 2030.
Transmission expansion may be particularly relevant because regulated revenues can provide greater predictability than businesses that are more exposed to market electricity prices.
This does not eliminate risk, but it may create an attractive combination of growth and revenue visibility.
Shareholder Remuneration
Another important development in 2026 has been Axia’s capital allocation strategy.
The company reported up to R$7.7 billion in capital available for allocation during the first half of the year, including R$4 billion approved in the first quarter and another R$3.7 billion in the second quarter.
This amount should not automatically be interpreted as dividends.
The company uses different capital-allocation mechanisms, including transactions involving shares. Investors should therefore follow official company announcements to understand exactly how the capital will be distributed or deployed.
Shareholder remuneration is positive, but it must always be considered alongside investment requirements and financial leverage.
A Recent Risk: The Cepisa Agreement
A recent development also deserves attention.
In August 2026, Axia announced an agreement with the Brazilian federal government and the state of Piauí to settle a legal dispute related to the privatization of the former Cepisa utility.
The agreement involves two payments of R$650 million, totaling R$1.3 billion. The company stated that the amount had already been provisioned in its financial statements. The agreement remains subject to judicial approval procedures.
The existing provision reduces the likelihood of the settlement becoming an unexpected accounting shock of the same magnitude. Nevertheless, the case illustrates why investors should continue monitoring legacy liabilities and contingencies associated with the former Eletrobras.
Potential Strengths of Axia Energia
The main factors supporting the company’s investment thesis include:
- strategic position in Brazil’s electricity sector;
- significant operating scale;
- exposure to generation and transmission;
- EBITDA growth in 2026;
- strong first-half earnings growth;
- higher investment levels;
- expansion of transmission projects;
- potential growth in regulated annual revenue;
- potential shareholder remuneration;
- reduction in contingencies;
- simplification of the corporate structure.
Main Risks
Investors should also consider:
- high absolute debt levels;
- continuous capital requirements;
- sensitivity of generation earnings to electricity prices and volumes;
- regulatory risks;
- legacy liabilities and contingencies;
- potential non-recurring effects on earnings;
- relatively moderate ROE;
- the possibility that current earnings may not fully represent sustainable future earnings;
- stock-price volatility.
Is AXIA3 a Good Investment?
The answer depends on the investor’s objectives and risk profile.
From a fundamental perspective, Axia has several attractive characteristics: significant scale, strategic assets, earnings generation, increasing investment and potential growth in regulated revenue.
However, investors should not focus exclusively on net income or a single valuation multiple.
The key metrics to monitor include recurring EBITDA, cash flow, net debt, return on capital, capital expenditure, regulated revenue, power generation and shareholder remuneration.
The major long-term question is whether Axia can transform its investment program and operational scale into sustainable earnings and cash-flow growth without compromising its financial structure.
Conclusion
Axia Energia enters 2026 with an investment thesis that is significantly different from the one associated with the final years of the former Eletrobras.
First-half results indicate meaningful operational improvement, while higher investment levels point toward an expansion strategy. At the same time, the company still carries a large financial structure and legacy liabilities that require close monitoring.
For this reason, AXIA3 may be an interesting company for fundamental investors to follow, but any investment decision should consider valuation, entry price, investment horizon and risk tolerance.
Instead of simply asking whether AXIA3 is “cheap” or “expensive,” investors should focus on whether the company’s fundamentals continue to improve over the coming quarters.
This article is part of the educational content produced by the André Vilabrisa channel, which aims to explain investment concepts and company analysis in an accessible way.
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