A good afternoon, everyone. And thank you for joining our earnings call.

Before going through the highlights of the quarter, I would like to point out that to provide a better comparison between the figures presented here and the second quarter of 2025 we have made adjustments to include the results of the transmission which we divested in December 2025. We believe this approach provides a clear and more comparable view of our outgoing performance.

This quarter, we reached adjusted EBITDA of $3 million representing 2.5x our short term debt, reinforcing our strong liquidity position as we navigate through 2026. Regarding the net debt to EBITDA ratio, we saw an increase of 0.4x compared with the first quarter of 2026 mainly due to this 5.6 billion payment for the acquisition of the stake in Copasa.

It is worth noting that our last 12 months EBITDA still includes the capital gain from the sale of the transmission assets which will remain in the calculation through the third quarter of 2026. Regarding compensation payments, we continued on a positive trend.

With a reduction of BRL 16 million or 18.3% reflecting our continuous focus on improving service quality. On the operational side, the second quarter was marked by solid progress.

Our wire beam market grew 4.2% driven by our concessions in Pará, Amapá, Goiás, Maranhao, Rio Grande do Sul and Piaui. This quarter, there was a change in the billing schedule for Alagoas.

Which shifted 1 month of billing into the third quarter. Adjusting for this effect, B wire market would have grown 5% Now regarding our-- there was a difference of 1.0 percentage point in our regulatory threshold.

Maranhão was a particular highlight as a return to the regulatory threshold. Regarding quality indicators, DAC improved across all of the group's distribution companies.

Compared with the first quarter of 2026. Amapá was a highlight with the 2- to 5-hour reduction, while Piauí moved back within the regulatory limit.

This performance reinforces our commitment to quality, efficient and continuous improvement in service delivery supported by a disciplined execution We added 911 million of a total of BRL 2.8 billion liability in the program significantly improving the terms of the company's liability. The 75% discount on interest and penalties equivalent to $355 million is already reflected in our results on the remaining balance up to 60% may be settled using court ordered government receivables purchased at a discount Settlement is expected to take place in the second half of the year.

Finally, I would like to highlight the importance of the acquisition of the stake in Copasa, which represents an important milestone in Equatorial's growth trajectory. This achievement reinforces its ability to identify and capture value creation opportunities reflecting more than 2 decades of operational excellence, disciplined capital allocation and consistent track record.

We are very proud of this strategic move, which expands our presence in a sector where we have built significant experience and delivered proven results. We are prepared to implement our value creation plan.

Always committed to delivering sustainable results to our shareholders and other stakeholders I will now turn the floor to Leonardo on Slide 5. To begin the consolidated overview of the group's financial performance.

Well, thank you, Augusto, and a good afternoon, everyone. I will briefly discuss the group's financial performance on a consolidated and adjusted basis.

Our consolidated gross margin increased by 7.7% mainly driven by the performance of the distribution segment reflecting market growth and the increase in the wire B tariff. Consolidated EBITDA increased by 0.8% excluding SABESP's equity income from our EBITDA, growth would have been 4.1% highlighting the improvement in the Distribution segment that we will detail further ahead.

Net income before minority interest totaled $653 million in the quarter driven by the recognition of the gain related to our participation in the Acordo Gaúcho program. On an adjusted basis.

Excluding this effect, as well as the transmission segment's results, adjusted net income decreased by 80.1% This reflects higher financial expenses during the period due both to higher interest rates and the increase of our debt balance associated with the current investment cycle. The net debt to EBITDA ratio stood at 3.1x, an increase of 0.4x compared with the previous quarter.

Mainly due as Augusto already mentioned, to the acquisition of the stake in Copasa. It is worth noting that for covenant purposes and in accordance with the contractual provisions EBITDA considers besides the addition of Equatorial and the equity income of SABESP, a pro forma of equity in Copasa in the last 12 months.

Thus, Thus, you will understand the true impact of this new acquisition in leverage This quarter, we continued being very active in the capital markets, focusing on improving our debt profile by extending average maturities and reducing spreads on CDI linked debt that currently stands at CDI plus 0.57 per year. During this quarter, we raised BRL7.6 billion, of which BRL5.1 billion were allocated to the acquisition of Copasa at an average cost of CDI plus 0.8% per year The average debt maturity excluding the debt raise for the acquisition would be 5.9 years.

Compared with 5.6 years including Copasa, giving a scenario that is traditionally more volatile due to elections, we have worked to bring forward our funding needs preserving financial flexibility while seeking competitive funding conditions. Finally, we will see the investments for the quarter.

That added approximately BRL 2.6 billion down 4% compared to the same quarter last year. Let's move on to Slide 7.

Here on Slide 7, we provide an overview of the consolidated operational and commercial performance of our distribution companies as well as the key financial highlights for the quarter. On the left side, we can see strong market growth with injected energy increasing by 4.7% and 4.2% for the wire beam market.

It is worth highlighting that even with the expansion of our market base, the company maintained a downward trend in energy loss compared to the second quarter of 2025. During the quarter, our collection rate was 97.32% while expected credit losses stood at 1.26%, reflecting both the increase in delinquency and higher billing during the period.

Regarding quality indicators, we reported improvement across all of the group's distribution companies with 5 out of 7 operating within the regulatory DEC limit. Among the companies that are still above this limit, We should mention Rio Grande do Sul, with a specific contractual debt target, while Goias continues to benefit from a waiver from the DEC indicator and is currently only at 0.06 hours above the regulatory limit regarding all of the distribution companies remain within the of regulatory limits.

Reflecting this operational improvement and the higher quality of service compensation payments decreased by 18.3% vis-à-vis the same quarter last year. To the right of slide, we can see a 10.4% increase in the distribution companies gross margin, reflecting mainly the higher wire B tariff and higher market volumes during the period.

On the distribution side, Adjusted PMSO per customer for the distribution company over the last 12 months increased 4% compared with the fourth quarter of 2025. Below inflation, for the period on an adjusted basis, excluding compensation payments, the increase was only 1.2%, reflecting improvements in operating quality compliant with an efficient and disciplined use of resources.

In the last 12 months, alone, we reduced compensation payments to customers by BRL 102 million. Adjusted EBITDA in the distribution segment increased 8%, mainly driven by the higher gross margin.

It is worth noting that removal costs are included for comparison purposes impacting adjusted EBITDA in both quarters. Let's go on to Slide number 9 to look at the other business segments in the water and sanitation segment EBITDA totaled BRL 6.6 million, down 10.4% compared to the second quarter of 2025.

It is worth noting however that the comparison was affected by an item recorded in the second quarter of 2025. The provision reversal following the completion of an inventory Excluding this effect, EBITDA would have increased 24% compared with the same quarter last year.

Driven by the gross margin growth. In addition, we continue to expand water and sewage coverage and have a lower allowance for expected credit losses in the renewable segment, adjusted EBITDA was BRL 135.3 million, down 22.6% between the periods mainly reflecting lower power generation.

Here we also present to you a breakdown of curtailment according to the real and external unavailability criteria. Together with the financial impacts since 2023.

Regarding compensation for curtailment, we made an important progress in recent weeks. The Ministry of Mines the Ministry of Minds and Energy published normative Ordinance 140 provided for under Law number 15.3 thousand.

Covering reliability and external unavailability events that occurred between September 2023 and November 2025. We believe this regulation represents an important step towards making the compensation process effective.

And we continue to closely monitor its implementation and contribute to the next steps. I will now turn the floor back to Augusto Thank you, Leonardo.

To wrap up, I would like to share our key priorities for the coming months at Copasa, our near term focus is to define the management team monitoring the 100-day plan and completing the necessary steps including the extraordinary general meeting which should be called in the coming days in the distribution sector, we have a highly relevant and positive regulatory agenda for our distribution companies. We are actively contributing to tariff reviews for CEEE-D and CEEE-T.

We will also complete the settlement with the-- from the operational standpoint we will maintain strict cost discipline while continuing to allocate the resources to improve both quality and experience of our customers Finally, we will continue to assess opportunities that are aligned with our strategy, always maintaining the disciplined approach to capital allocation, which has always characterized Equatorial. I will now hand over the floor to the operator to go on to the question and answer session.

Good afternoon. We have 2 quick questions here.

First, if you could give us color on which will be the dynamic of CapEx focused on quality. In the last few weeks, we have seen an increase in expenses because of the quality issue.

Secondly, a question about capital structure. You have a covenant of 3.3x.

But this does not include transmission. Now your ideal cap capital structure would be 3-3.5x.

But in a scenario of high interest rates, it should be 3x. Are you thinking of doing anything to optimize your capital structure?

Or are there any actions in this direction? Thank you.

Lucas, thank you for the questions. Leonardo and I will answer them.

The On quality, you will observe that we are improving the indicators. We have companies at several stages of life.

Some are mature, some are not quite mature. And we are managing this process very happily.

If you look at the indicators, we are in accordance with the FEC In DEC, 5 of these 7 companies are within the threshold. Goias, as Leonardo mentioned, we are 0.4 points away and the demand stands for 2028.

In Rio Grande do Sul, which is a typical-- We have a curve adjusted by the contract and we are, of course, focused very much on that curve. Another thing are the FECs, the curve of FECs.

We negotiated this very much. And quarter after quarter, month after month, I would say, are also focusing on evolution.

There we have quality, we have the issue of losses. Credit losses, sometimes with challenges.

So DEC and FEC, and you will see that the cost is under control. We are doing this efficiently and we will continue managing in this fashion with a focus on quality, of course, and PMSO.

Well, thank you.

For the question, Lucas, regarding our leverage In fact, we are in an environment that is somewhat more deteriorated. And we are proceeding somewhat more slowly We are beginning to improve since the month of July.

But oftentimes it is in this type of environment that interesting opportunities will arise. We can say that we have a significant balance of works that were carried out and based on the situation of this moment, they have an impact on our net debt, but they have not had an impact on our EBITDA.

This year, we will have the tariff revision in Rio Grande do Sul and Amapa. This should lead to a good closing.

The coming year, we have that same review in Para. The year after that, we will have the tariff review in Goias.

Then in Piaui. In such a way that based on these tariff reviews, this part that today is impacting our net debt will then begin to be part of our EBITDA.

Once all of these bases have been fully recognized. We have interesting flexibility And all of this because of the moment in which we make some movements to generate value, but with a great deal of responsibility observing the speed of how things become materialized.

Good afternoon. Thank you for taking my questions.

I have 2 questions here. The first refers to your default levels.

What is your view of the dynamic of evolution of this indicator Well, in the last year and in the last quarters, we seem to have a greater deterioration because of the economy. And if you could comment on the evolution of the data of your bank of prices in default with ANEEL, if this could lead to the default levels at your company.

A second question, your schedule for the coming steps for Copasa. What would be your initial movements You mentioned you would be speaking about this in greater detail.

Thank you very much.

Daniel, thank you. Simply to confirm your-- the first question refers to default levels.

Secondly, and the price bank, the regulatory part with ANEEL. Okay.

Okay. Regarding the default, in the quarter, we have observed an environment with somewhat deteriorated default we continue with a very interesting figure of collection in the high voltage and we observe a movement in the low voltage market.

Where we have seen a more robust billing. Especially because of the tariff every 2 or 3 years, we carry out work in house to bring in a different consultancy to carry out an analysis of all of the tools that we are using, the constitution of teams and much more.

And this is 1 of the years that we do this every once in a while. Recently, we concluded the phase of diagnosis of separation.

And in the second half of the year, we should begin to launch some of the initiatives that we prepared. We have activities that will allow us to count upon new contributions We continue to seek an improvement in the performance in our levels of collection.

Well, since April, we are motivating this movement, this work that you mentioned where we are adapting our tools according to each segment, behavior in every region. Now we are still delving into this movement to be able to face this environment where we do observe signs of deterioration.

And this deterioration goes very well with your other question. I will give it to Cristiano, our regulator director who will answer this Recently, you must have followed the consultation that was held And the agency has a schedule to discuss these topics in September for non recoverable collections and others Now these topics are highly linked together.

And this will be applied for the tariff revision of CEEE-D that will take place in Marcos. So in September, we are going to conclude the first step through the agency, through ANEEL.

We think there will be a reformulation of this schedule. We are still lagging behind, but we are hoping for a positive signal of the distribution companies regarding this data.

Perfect. Thank you.

If you could comment on the schedule for Copasa, you spoke about your initial movement simply so that we can understand what you will be doing in the coming months. I would be very thankful for that.

Well, Copasa is following a ritual, a process with the antitrust agency, CADE, after CADE published this and sent out the meetings We are now going to hold that extraordinary general meeting. We will have the elect of the board and take the other provisions or measures that will arise from this So this meeting will be convened very soon.

This is the normal process that we tend to follow. Thank you.

Thank you. Very much.

Good afternoon. We have 2 questions on the regulatory area.

1, about the productivity factor mentioned by Cristiano. Could you speak more about the proposal that has been published already and what are the contributions that you expect to deliver to that public consultation?

And for the possible enforcement of this new methodology, we went through several other topics of the regulatory area, not only for distribution but also for generation. Besides the recoverable collection and other topics, what are other agendas that can move forward in the distribution sector in the coming 12 months?

There is a discussion on the price bank and other issues Will you have sufficient time to make advances in the coming 12 months? Thank you.

Good afternoon. Thank you for the question.

In fact, ANEEL did begin a public consultation using some of these indicators where all the-- over this work. And this should be carried out within 2026.

We believe that this is positive as especially option number 3 of ANEEL. There are several interesting combination of contributions for several companies for this sector.

There are some key points. And the main ones are a way to extrapolate the remuneration base Now the approach of ANEEL tends to be highly conservative and we would like to have more realistic work in this way and an increase in the pace of growth compared to previous periods.

And if we can add companies of larger and smaller size, I think this will enable us to proceed in a more clear fashion. And the temporary journey that we had in 2025.

Now all of this should generate interesting benefits regarding this agenda. Now for the coming 12 months, we are basing ourselves on regulatory issues for the remuneration base.

And we are trying to work in 2 stages. First of all, re analyzing our present day database And this will begin in the first half of the coming year and may go on to the end of 2027.

And we are in a process of making ANEEL aware of this new methodology. We have had some bottlenecks in the past and we are working along with Abrade once again to increase the awareness of ANEEL in this field.

Because of the structural changes we observe in the market as a whole. And, of course, the labor part, labor remuneration should make considerable strides in the coming months.

That was very clear. Thank you very much.

If you could speak about your present day expectation on the price behavior for removals in the coming months, Could you speak about that?

Well, good afternoon. Thank you, Raul, for the question.

The cost of removal has a direct relationship with the pace of investments And insofar as you come closer to the tariff revision processes, it is normal to speed up investments especially the replacement investments when you carry out a replacement of equipment for those that are more degraded with new networks So in these replacement investments we do have that presence of the removal. Now this is related to investments that should be higher in the second part of the tariff cycles.

There is also the link with the actions that you carry out to foster the closing of work closing that will come along with the capitalization When you intensify this process of capitalization, naturally, the record of removal will begin to appear. It will have a behavior linked to the level of investments and the level of capitalization.

Close to the tariff processes, which is more or less where we are. Once this is over, it will tend to withdraw a bit.

In this specific quarter, we can observe that most of the growth of generation took place in companies that are under the process of review, especially Rio Grande do Sul. And there was growth in the company We invested approximately BRL 3.5 billion during the cycle.

But this was a cycle in which we kept at the BRL 900 million. And it brings about a record not only of the work that were carried out, but also the removal costs as associated to replacement substitutions.

Thank you. And to close, I would like to reinforce our commitment to continuous generation with our shareholders and to a consistent delivery of results in the different segments we are active in, for a sound and disciplined financial management The IR team is at your entire disposal to clarify any doubt that you may have after the call.

Once again, I thank you for your interest in the company and I thank you for your attendance in our earnings results call. Have a very good afternoon.