What Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (EDN) Said on Its Q3 Earnings Call

Key Points

• Revenue rose 14% in real terms in Q3 2026 to ARS 1,123 billion, supported by tariff adjustments, while distribution margin increased 5%. Quarterly profit fell 25% to ARS 43 billion, partly because the prior-year period included a CAMMESA settlement gain.
• Excluding the one-time CAMMESA gain recorded in 2025, nine-month EBITDA increased 58% year over year to ARS 506 billion. Edenor said tariff adjustments outpaced inflation, while operating expenses declined 5%.
• Edenor expects to complete its acquisition of YPF’s controlling stake in MetroGAS before year-end, subject to approvals and other conditions. The combined utilities would serve 5.8 million electricity and gas customers.

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) NYSE: EDN reported a 14% increase in third-quarter revenue in real terms, as tariff adjustments supported its electricity distribution business. The Argentine utility also said it expects to close its planned acquisition of a controlling stake in natural gas distributor MetroGAS before year-end, subject to approvals and other conditions.

Revenue for the quarter ended Sept. 30, 2026, rose to ARS 1,123 billion, while distribution margin increased 5% from a year earlier to ARS 434 billion, Chief Financial Officer Germán Ranftl said on the earnings call. Quarterly profit was ARS 43 billion, down 25% from the prior-year period, which benefited from a gain related to a settlement with wholesale electricity market administrator CAMMESA.

For the first nine months of 2026, Edenor reported EBITDA of ARS 506 billion. Excluding an ARS 266 billion one-time gain recognized in September 2025 from the CAMMESA settlement, EBITDA increased 58% year over year, Ranftl said.

Tariff adjustments support results

Ranftl attributed the improvement in nine-month EBITDA primarily to a higher distribution margin, with increases in the value-added distribution component of tariffs outpacing inflation. Operating expenses fell 5% to ARS 986 billion over the same period, he said.

Edenor’s 2025–2030 tariff review provides for automatic monthly adjustments based on a formula weighted 33% to consumer prices and 67% to wholesale prices, plus a 0.42% monthly adjustment above inflation. From January through September 2026, cumulative adjustments to the value-added distribution component were 28.4%, compared with inflation of 23.6%, Ranftl said.

He also said Edenor had recognized ARS 38 billion in 2026 for pending government receivables under an agreement covering the cost of energy consumed in lower-income neighborhoods during 2024 and 2025.

The company’s cost initiatives included a development and retirement plan, which Ranftl said contributed to a 1% reduction in salary expenses and a 37% decline in pension plan costs. Materials consumption fell 28%, while regulatory penalties declined 23%, reflecting a change in valuation mechanisms and improved service indicators.

Edenor’s customer count rose 1.3% year over year to 3.42 million. Quarterly energy sales increased 0.5% to 5,990 gigawatt-hours, primarily because colder temperatures lifted residential and low-income neighborhood demand, Ranftl said.

MetroGAS deal awaits approvals

Edenor’s offer to acquire YPF’s 70% voting stake in MetroGAS, along with a 5% stake in MetroENERGÍA, a MetroGAS subsidiary, has been accepted, Ranftl said. Closing remains subject to conditions including regulatory and governmental approvals.

The CFO said the transaction would combine two utilities serving a total of 5.8 million electricity and natural gas customers in Buenos Aires and its metropolitan area. Edenor sees potential commercial, operational and administrative synergies, although it will not operate MetroGAS until the change of control is completed.

MetroGAS shareholders ratified an agreement on Oct. 29 to extend its natural gas distribution license for 20 years, until 2047, Ranftl said. The extension remains subject to conditions, including ratification by Argentina’s executive branch.

Edenor issued $213 million in Class 11 notes in July and reopened its Class 10 notes that month. The company said it had $1.6 billion in senior notes and loans outstanding at the end of September and net debt of $392 million.

Investment and service quality

Edenor invested ARS 98 billion in the third quarter, bringing nine-month capital spending to ARS 264 billion. Planned projects included an expansion at the Rodríguez substation, alongside further installation of remote-control points, monitoring equipment and smart meters.

Ranftl said service indicators reached record lows in the third quarter: average outage duration was 5.3 hours and average outage frequency was 2.7 per customer. Those figures were down 50% and 34%, respectively, from 2021 levels.

Energy losses over the 12 months through the third quarter were 16.3%. Ranftl attributed the increase to factors including challenging weather, changes in tariffs and subsidies, and economic activity affecting demand from large customers. He said reducing losses remains a priority, with the company using inspections and analytical tools to detect irregular connections.

Edenor also continues to pursue a regulatory asset claim for tariff adjustment differences from 2019 through 2023. Ranftl said a law establishing a compensation framework was approved on Oct. 13 and that the company expects implementing regulations before year-end.

About Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN)

Empresa Distribuidora y Comercializadora Norte SA, commonly known as Edenor, is an Argentine electric utility that distributes electricity to residential, commercial and industrial customers. The company operates and maintains the low-, medium- and high-voltage distribution network, manages customer connections and metering, and provides related billing and customer-support services.

Edenor serves the northern and northwestern areas of the Buenos Aires metropolitan region, including portions of the Autonomous City of Buenos Aires and surrounding municipalities in Buenos Aires Province.

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