Central Puerto Q1 2026 Earnings Report

Central Puerto EPS Results

• Actual EPS: $0.90
• Consensus EPS: $0.26
• Beat/Miss: Beat by +$0.64
• One Year Ago EPS: N/A

Central Puerto Revenue Results

• Actual Revenue: $248.52 million
• Expected Revenue: $243.07 million
• Beat/Miss: Beat by +$5.45 million
• YoY Revenue Growth: N/A

Central Puerto Announcement Details

• Quarter: Q1 2026
• Date: 5/13/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, May 13, 2026
• Conference Call Time: 11:00AM ET

Central Puerto (NYSE:CEPU) S.A. (NYSE: CEPU) is Argentina’s leading private power generation company, managing a diversified portfolio of thermal and renewable energy facilities across the country. Established following the privatization of the state-owned electricity company in the early 1990s, Central Puerto develops, operates and maintains a mix of combined-cycle and open-cycle gas turbine plants, as well as hydroelectric and renewable installations. The company’s thermal assets provide baseload and flexible generation capacity, while its renewable portfolio includes wind farms and solar parks that support Argentina’s clean energy objectives.

Headquartered in Buenos Aires, Central Puerto serves the national wholesale electricity market through long-term contracts with distribution companies and major industrial clients. Its operational footprint spans key regions including Buenos Aires Province, Santa Fe and the northern provinces, positioning the company to meet demand in densely populated and rapidly growing areas. Central Puerto emphasizes reliability, efficiency and environmental stewardship in the management of its power plants.

Since its initial public offering on the New York Stock Exchange in 2008, Central Puerto has pursued strategic investments to enhance its generation mix and expand capacity. The company has implemented advanced control systems, emissions-reduction technologies and water-saving measures to optimize performance and comply with evolving regulatory standards. In the renewable segment, Central Puerto continues to explore new project opportunities in wind and solar generation to align with Argentina’s renewable energy targets.

Central Puerto is guided by an experienced leadership team with expertise in energy project development, engineering, finance and regulatory affairs. The management group drives initiatives in asset modernization, operational excellence and stakeholder engagement. Looking ahead, Central Puerto aims to support Argentina’s energy transition by leveraging its diverse portfolio and technical capabilities to deliver sustainable, reliable electricity to residential, commercial and industrial customers.

Central Puerto Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Adjusted EBITDA rose 33.4% year over year to $120 million, while revenue increased 26.7% to $248.6 million, supported by new generation assets, market normalization, improved spot revenues, and commercial contracting.
• Positive Sentiment: Central Puerto reported a leading position in the newly established term market, with 44% of first-quarter revenue coming from contracted sales; management said the first 20% of eligible private-customer energy is fully contracted and it is pursuing additional contracts with distribution companies.
• Positive Sentiment: The company secured a 30-year renewal of the Piedra del Águila hydro concession through January 2056, received a AAA local credit-rating upgrade, and said its battery-storage project remains on track for commercial operation in mid-2027.
• Neutral Sentiment: First-quarter capital expenditures reached $301 million, including $225 million for the Piedra del Águila share transfer, while net leverage remained moderate at 1.06 times; management said leverage could rise for future M&A but does not expect it to exceed roughly 2.5 times absent attractive opportunities.
• Neutral Sentiment: Central Puerto acquired Patagonia Energy for $50 million and plans to drill two or three de-risking wells in Vaca Muerta, potentially beginning in late 2026 or early 2027 at an estimated cost of about $17 million per well, though development timing and economics remain uncertain.

Presentation

[Operator]

All participants will be in a listen-only mode during the presentation. After that, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the Investor Relations support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of Central Puerto's website. Our host today will be Mr. Fernando Bonnet, Central Puerto's CEO, Mr. Enrique Terraneo, the company's CFO, and Mrs. Maria Laura Feller, Head of Investor Relations, and Mr. Alejandro Diaz Lopez, Head of Corporate Finance. Maria Laura, please go ahead.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Thank you very much. Good morning and welcome everyone. We are joining you today from Buenos Aires with our management team to report on the results of the first quarter of 2026 and to answer any questions you may have. Before we begin, I would like to remind everyone that today's presentation, as referenced on Slide 2, contains forward-looking statements and non-IFRS financial measures, including Adjusted EBITDA. These statements are based on management's current expectations and are subject to risks and uncertainty. Please refer to the full disclaimer in our slide deck and on our website for further information. The company has changed its functional currency from Argentine pesos to USD Dollars, effective January 1, 2026, so applicable to 1Q 2026 financial figures.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

For previous quarters, figures are presented in US dollars, converted from Argentine pesos using the reference exchange rate reported by the Central Bank of the Argentine Republic at the end of each period. With that, let us move to the highlights of the quarter. Turning to slide three. The first quarter 2026 was a strong quarter for Central Puerto, characterized by outstanding commercial execution and continued progress in market normalization following Resolution 400/2025. Let me walk you through our key metrics. Adjusted EBITDA reached $120.0 million, representing a 41.6% increase quarter-on-quarter versus $84.7 million in 4Q 2025 and 33.4% year-on-year growth versus $89.9 million in 1Q 2025. This result reflects the full benefit of new generation assets, commercial contracting gains, and the normalization of the wholesale electricity market.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Revenues totaled $248.6 million, up 43.8% quarter-on-quarter versus 4Q 2025, and up 26.7% year-on-year versus 1Q 2025, driven by higher contracted and spot revenues. The contribution of Brigadier Lopez combined cycle and the new solar farms added in 2025. Total generation for the quarter was 5,420 GWh, a 54.2% increase quarter-on-quarter, largely reflected by uptime by solar and a mini. Total generation, the restoration of Central Costanera combined cycle units and the addition of new installed capacity. Capital expenditure for the quarter amounted to $301.0 million, including the $225.0 million transfer of Piedra del Aguila shares following the concession award renewal, and $66.0 million in business construction and maintenance works. Our net financial leverage ratio stands at 1.06x, with net financial debt of $390.8 million against the last 12 months Adjusted EBITDA of $367.2 million.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

The FONINVEMEM credit outstanding balance is $105.8 million. On the credit rating front, we received an upgrade to AAA from Moody's Local AR Agente de Calificación de Riesgo S.A. From a strategic perspective, the concession renewal of Piedra del Aguila for 30 years to January 2056 is a landmark achievement, securing a flagship hydro asset under a new long-term framework. Additionally, our BESS project at the Central Puerto facility is advancing well, with 60% of site works completed, 32 concrete pads finished, and phase 1 of the 132 kV work done. Market normalization continues under Resolution 400/2025, and Central Puerto has achieved a leading commercial position in the newly established term market. More on that on the next slide. Moving to slide four. In the first quarter of 2026, Central Puerto achieved a decisive commercial breakthrough under the new market framework established by Resolution 400/2025.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Our contracting performance in the newly established term market, we could highlight that Central Puerto held number 1 market share in MAT-P, the contracted capacity segments for thermal and hydro process. In MAT-E, the contracted energy segment for thermal and hydro, Central Puerto held the number 2 market share. Overall, 44% of our 1Q 2026 revenues were generated from contracted sales, demonstrating our ability to quickly capitalize the market opportunities. Turning to Slide 5 for the earnings summary. First quarter 2026 Adjusted EBITDA came in at $120.0 million, with an Adjusted EBITDA margin reflecting efficient operations and a better revenue mix. The 41.7% quarter-on-quarter increase was driven by higher spot revenues from market normalization and the Resolution 400/2025. The contribution of the Brigadier Lopez combined cycle, which achieved its COD in January 2026 with an additional gas turbine closing the CC configuration, adding 140 MW.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Full quarter contributions from my 2025 solar acquisitions, Cafayate and San Carlos, and the solid performance of our wind farms. On the revenue side, the 44% quarter-on-quarter increase to $248.6 million reflected contracted revenues growing from new PPA sales from Brigadier Lopez, active participation in MAT contracting, and contributions from Piedra del Aguila. Spot revenues improving due to market normalization, restored volumes at Central Costanera following its 4Q 2025 maintenance, and $8 million from self-procured natural gas. On a year-on-year basis, the 33.5% EBITDA growth and 27% revenue growth underscore the structural improvement in our earnings profile. Moving to Slide 6 for a review of our generation and availability performance. Total generation for the quarter was 5,420 GWh, up 54% quarter-on-quarter. This significant jump was primarily driven by the maintenance works of Central Costanera's Mitsubishi and Siemens combined cycle units, which had been under maintenance during 4Q 2025.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

The addition of Brigadier Lopez combined cycle, which contributed incremental generation since its COD in January 2026, adding +229 MW to our installed capacity on a quarter-on-quarter basis. In the first quarter, Central Puerto acquired 100% of the shares of Patagonia Energy S.A., or PESA, for a total consideration of $50 million. PESA holds a 10-year conventional exploitation license for the Aguada del Chivato and Aguada Bocarey blocks in Neuquén Province, valid through May 30, 2031. The investment thesis is compelling for several reasons. The blocks cover over 27,000 oil-focused acres in the northern area of the Vaca Muerta play, an area adjacent to blocks that have already de-risked the black oil window of this world-class formation. Low entry cost per acre and a limited exploratory phase plan with an existing oil treatment plant facility of 1,900 bpd already in operation.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Solid geological evidence of unconventional hydrocarbon potential in target landing zones, assessed by qualified geologists based on existing conventional drilling data. Under a successful development scenario, this is a potential RIGI-related investment opportunity of up to $600 million to unlock the potential value of these assets. We are currently advancing a de-risking plan backed by international unconventional play experts. Our balance sheet remains solid, though the quarter was capital intensive due to the Piedra del Águila concession transaction. Total outstanding financial debt stands at $539.2 million against cash and financial current assets of $148.4 million, resulting in a net financial debt of $390 million. Against our last 12 months Adjusted EBITDA of $367.2 million, this yields a net leverage ratio of 1.06x. First quarter 2026 marks a pivotal inflection point for Central Puerto.

[Maria Laura Feller, Head of Investor Relations at Central Puerto]

Our results reflect sustained revenue, margin, and EBITDA growth, driven by strong commercial execution, operational excellence, and the contribution of the new power generation assets incorporated through our capital plan over the past two years. Our 2026 outlook is constructive. We expect continued operational excellence and financial performance, with BESS projects progressing toward their mid-2027 commercial operation date, ongoing market normalization providing further revenue upside, and incremental contracting opportunities with large users and distribution companies materializing as the market matures. We remain firmly committed to delivering long-term value for our shareholders, and we are excited about the opportunities ahead for Central Puerto. Thank you very much for your interest and confidence in Central Puerto. Operator, please open the line for questions.

[Operator]

Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put Hand Down. Please hold while we poll for questions. Please hold while we poll for questions. Our first question comes from Matías Cattaruzzi with Adcap.

[Matías Cattaruzzi, Analyst at Adcap]

Hi, good morning. How are you? I got three questions. First, in the first quarter, we observed that post-maintenance generation rebound flowed primarily into the spot market rather than into contracted PPAs. With PPAs volumes growth as we are seeing, it would be more gradual for 2026. Could you share with us how the migrations towards more contracting and PPAs is progressing into 2026? I got another question on how do you expect self-procurement in fuels affecting CEPU going forward? Do you expect to access gas transportation capacity through the Perito Moreno expansion, or do you see a reliance on CAMMESA's Plan Gas.Ar going forward? I got a final question. Following the closing of the transaction with Patagonia Energy, could you walk us through the specific timeline for the two shale pilots?

[Matías Cattaruzzi, Analyst at Adcap]

Have you been in conversations with other potential operating partners, or does it involve a standalone development?

[Fernando Bonnet, CEO at Central Puerto]

Okay. Thank you. Thank you for your question. Going one by one. The first that you ask is related to the migration from the spot market to the contracted market. We are, in fact, in the first quarter and right now advancing that area. For the first 20% that the regulation allows to us to sell to the private consumers, we are fully contracted there right now. We are now keep going in the other 80% that we can only sell to the distribution companies. This is the regulations as is right now. We are starting to moving that 80% that we still sell to the spot market, to negotiating with distribution companies. Right now we are having a good advance with them, and we expect that to have more news about that in next quarter. That is the first question.

[Fernando Bonnet, CEO at Central Puerto]

The second, you mentioned, I think, is related to the gas transportation. In terms of gas transportation, we participate in the TGS auction. It was an auction, very competitive, so we received less than we asked. We received around 400,000 meter cubes, and we asked for 1.6 million. We are still trying to get in the next round of the TGS auction, more gas transportation there. We are talking with distribution companies also to have more transportation. In terms of the gas itself, we are working. Right now, we are still in the Plan Gas with CAMMESA, but we had advanced conversation with all gas producers to start buying our own gas. I think that in the next two months, we will have news related to that. It is not easy because there is no producer except Pampa Energía S.A. that get out of Plan Gas.

[Fernando Bonnet, CEO at Central Puerto]

Pampa Energía S.A., by using their own generation. There is no private producer yet outside the Plan Gas, but we have an advanced conversation with some of them. We expect news for the next two or three months, in order to start buying the gas directly, not through CAMMESA. In terms of alternative fuels like diesel oil, fuel oil, and LNG or import gas, we are working, and we are right now buying our own fuel and gas. We are having that set with CAMMESA. The last one is the acquisition of PESA. As Maria Laura Feller mentioned, we are working with a U.S. company in order to develop the middle phase for the two pilots, two or three wells that we are thinking on doing in order to confirm the resources there and work for the CENJ with the province.

[Fernando Bonnet, CEO at Central Puerto]

But right now, we do not have a fixed timing to comment, but we expect that this is going to happen perhaps last quarter of this year or the first of the next one, because you need to bring all the drilling sets and that is the time right now, between four and five months. So that would be the timing, but it is not fully closed yet.

[Matías Cattaruzzi, Analyst at Adcap]

Great. Thank you. I got a follow-up on generation volumes going forward, in 2026. Do you expect PPA, contracted volumes to continue growing during 2026 or to stay steady as you shown in the first quarter? What will happen with the spot market generation as well?

[Fernando Bonnet, CEO at Central Puerto]

Oh, yes. As I mentioned before, we expect to increase our PPAs, especially with distribution companies. That is the idea that we are looking for. As I mentioned, we are in the private PPAs with big industries. We are almost at 100% of our capacity right now, regulated capacity. But we have something to do related to distribution company. We can go up to that 20% when we start a negotiation with distribution company. So that is what we are looking for the next quarters.

[Matías Cattaruzzi, Analyst at Adcap]

Great. Do you have a specific contract timeline of the new contracts, like they are a year contract, two-year contracts?

[Fernando Bonnet, CEO at Central Puerto]

Yes. Normally, we are seeing one year or no more than two years. This is for thermal. When you go to renewables, that could be perhaps bigger than that, three years, five years.

[Matías Cattaruzzi, Analyst at Adcap]

Okay, great. Thank you.

[Fernando Bonnet, CEO at Central Puerto]

You are welcome.

[Operator]

Next question from Tomás Peresin with Balanz.

[Tomás Peresin, Analyst at Balanz]

Hello, good morning. Can you hear me?

[Fernando Bonnet, CEO at Central Puerto]

Yes, Tomás.

[Tomás Peresin, Analyst at Balanz]

Okay. Congratulations on the results first. I have three questions. I will go one by one, if that's okay.

[Fernando Bonnet, CEO at Central Puerto]

Yes.

[Tomás Peresin, Analyst at Balanz]

Just a quick follow-on of the previous question. First, how much capacity do you consider can be able contracted under energy PPAs with DISCOs and industrial users? How much have you effectively contracted to date? If you see feasible to close PPAs with DISCOs this year.

[Fernando Bonnet, CEO at Central Puerto]

You ask about capacity, not energy. Capacity, we are fully contracted right now. Our capacity are fully contracted. Previously, I talk about energy. I think during this year, yes, we can have. Of course, this is one by one. Each DISCO have the process itself. I expect to have contracts with DISCOs or perhaps the first ones during this year, yes.

[Tomás Peresin, Analyst at Balanz]

Okay. The second one, regarding the TGS transport capacity, how much additional capacity do you still need to fully cover your fuel needs once Plan Gas.Ar expire? How challenging do you think this will be considering current bottlenecks in the system?

[Fernando Bonnet, CEO at Central Puerto]

Well, the question itself, I think, is very big to discuss and perhaps in a few minutes. You need to consider that we more or less consume perhaps between 10 and 12 million meter cubic per day. This doesn't mean that we need all this firm capacity because there is a lot of capacity in the pipelines, except in the wintertime. We want to have the capacity that we need for the contract that we have, and this is much more less than the old gas that we consume. As I mentioned, in the TGS bidding process, we asked for 1.6 million, and we received 400. I think we want to at least cover that 1.6 million to have firm gas during winter, which is the period that is important to have it. The rest of the year, the transportation is not a problem.

[Fernando Bonnet, CEO at Central Puerto]

The problem is during perhaps 30, 45 days during winter. In that moment is when we're going to need this additional firm capacity. As mentioned, 1.6 million, 2 million is what we expect to have.

[Tomás Peresin, Analyst at Balanz]

Okay. The last one regarding your recently acquisition in Vaca Muerta. Do you have an estimated CapEx for the two or three wells that you are thinking to develop?

[Fernando Bonnet, CEO at Central Puerto]

No, not yet, but what we expect is the normal values that the industry have there is around $17 million per well.

[Tomás Peresin, Analyst at Balanz]

Okay, thank you. Thank you very much.

[Fernando Bonnet, CEO at Central Puerto]

Okay. You are welcome.

[Operator]

Next question from Teodora Nacheva with Sandglass Capital. You can open your microphone. I believe she is having some technical issues. We are going to go ahead with our next question from Marcos Cerro with Allaria. Thank you for the presentation. A few questions. Number one, could you explain more about the plans in Vaca Muerta? Second, leverage ratio guidance for December 2026. Thank you.

[Fernando Bonnet, CEO at Central Puerto]

Okay. In terms of Vaca Muerta first, our plan is, of course, entering the area and trying to develop the area that we acquire. That is our plan. It is an area of 27,000 acres. There is a lot to do there. This is the first time that we enter in oil and gas business, so we need to de-risk the area to start understanding the business, and this will take perhaps a couple of years. Of course, we are going to look at opportunities if appear, but our first focus is to develop this area. It is an area that could place a rig there, so we need to work for the rig also and to have the same. This is our main focus right now, to develop in Vaca Muerta. We are going to see how it works and if we could enlarge that.

[Fernando Bonnet, CEO at Central Puerto]

In terms of leverage, it will depend on the opportunities. We are going to still see opportunities in M&A in our sector, in energy sector, coming from privates or coming from government auctions. The leverage ratio is going to depend on that, opportunities that we can develop there, that opportunities, but we are not expecting gross 2.5x or that area, 2.5x. Well, it will depend on the opportunities appearing and what we can get it or not.

[Operator]

Thank you. Our next question comes from Theodora Nacheva with Sandglass Capital. You can open your microphone. You can open your microphone.

[Teodora Nacheva, Analyst at Sandglass Capital]

Hi, I hope you can hear me now.

[Fernando Bonnet, CEO at Central Puerto]

Yes.

[Teodora Nacheva, Analyst at Sandglass Capital]

Sorry. Yeah, internet in London is crazy. Just taking back to the liberalization and spot market, maybe you mentioned it, but I couldn't hear you well. Can you mention again what is the realized price in legacy energy and capacity, how you see it going forward with PPAs? You mentioned the private ones, but I also saw there's something about CAMMESA potentially launching a small auction again. If you can-

[Fernando Bonnet, CEO at Central Puerto]

Oh, okay.

[Teodora Nacheva, Analyst at Sandglass Capital]

yeah.

[Fernando Bonnet, CEO at Central Puerto]

A lot of questions in one, but going one by one. In terms of prices, there is no clear market right now, so we see each negotiation is by each, so depending on the timing, depending on if you are acquiring renewables, if you are acquiring hydro, if you are acquiring thermal. So it's not easy to set the price for the whole market. But for sure, it's higher than the spot market prices. That's good news. But it's depending on, as I mentioned, the counterpart, if you are acquiring hydro or depending on the technology, but are better, we are seeing better prices, much more better price than the spot market.

[Fernando Bonnet, CEO at Central Puerto]

In terms of new auctions or CAMMESA possible new auctions are coming, or there are one auction in place, which is the AlmaSADI auction, is an auction for battery storage system in the whole country, not as the previous one that we win. It was related to AMBA area, to Buenos Aires area. The new auction is for the whole country, and this 700 MWof capacity, battery capacity. We are looking to participate there. We are developing projects to participate there. CAMMESA are talking about new capacity auctions and that is not still launched. They expect to launch a capacity auction, thermal capacity auction, for perhaps the second half of this year. We don't have a precision about quantity of megawatts or a specific regulation scheme that's not completely said by CAMMESA yet.

[Teodora Nacheva, Analyst at Sandglass Capital]

I understand. Isn't that, CAMMESA launching another thermal auction, isn't that a step back? The whole idea of this liberalization was to move away from the CAMMESA PPAs, and now they're doing it again.

[Fernando Bonnet, CEO at Central Puerto]

Well, more or less, because all over the world, the capacity auction is launched by the system regulator. It's not easy for distribution companies or privates to go for capacity, because it depends on the growth of the demand, the whole system. So in Brazil do the same, and it's more a free market than it was in Argentina. Chile, and it's normal that the system regulator launch the capacity in advance, trying to look forward to the whole system demand and trying to cover that. It's not energy, it's capacity. So I didn't see as a pack, because the electricity, the energy, will still be contracted by private companies and the distribution companies. But the capacity is different. So I only see that capacity option. No new PPAs related to energy. That is something that CAMMESA said that is not going back.

[Fernando Bonnet, CEO at Central Puerto]

Capacity, especially when you are trying to look the system for three, four, five 10 years in advance, it's something that the system regulators have a better understanding about the needs of the system in terms of capacity.

[Teodora Nacheva, Analyst at Sandglass Capital]

Okay, thank you. Just to clarify, on thermal spot legacy, what is the realized price that you are getting at the moment? Because it is subject to this frac cap.

[Fernando Bonnet, CEO at Central Puerto]

You are saying in the spot market?

[Teodora Nacheva, Analyst at Sandglass Capital]

Yeah.

[Fernando Bonnet, CEO at Central Puerto]

Well, that is a combination. You have capacity payments and you have a-

[Teodora Nacheva, Analyst at Sandglass Capital]

No, I am talking about dispatch.

[Fernando Bonnet, CEO at Central Puerto]

You talk about dispatch, the variable price that we receive is depending on what fuel we use. To say something, it's around $40 per MW. Yes. With gas-

[Teodora Nacheva, Analyst at Sandglass Capital]

Okay

[Fernando Bonnet, CEO at Central Puerto]

$40 something dollars per megawatt. Sorry, not thousand. Dollars.

[Teodora Nacheva, Analyst at Sandglass Capital]

Okay, understood. Thank you.

[Fernando Bonnet, CEO at Central Puerto]

It's depending on the efficiency of equipment, depending on the fuel that you use, but it's something around that.

[Operator]

Thank you. This concludes our Q&A session. I would like to turn the conference back over to Mr. Fernando Bonnet for any closing remarks.

[Fernando Bonnet, CEO at Central Puerto]

Okay, thank you. Central Puerto is in a growing phase marked by Piedra del Aguila concession extension, portfolio expansion, market normalization, and diversification in strategic sectors. Thank you, everyone, for joining and for your interest in our company. This is all for this quarter. Have a great rest of the week and month. You may now disconnect.

[Operator]

Thank you. This concludes today's conference call. You may now disconnect.

Participants

Executives

• Maria Laura Feller, Head of Investor Relations
• Fernando Bonnet, CEO

Analysts

• Matías Cattaruzzi, Analyst at Adcap
• Tomás Peresin, Analyst at Balanz
• Teodora Nacheva, Analyst at Sandglass Capital