Empresa Distribuidora y Comercializadora Norte Sociedad Anónima (EDN) Earnings

Management highlights

- Regulatory Framework Progress * A five-year tariff review (2025-2030) with monthly automatic tariff adjustments was approved in April 2026. The adjustment formula weights the Consumer Prices Index at 33% and the Wholesale Price Index at 67%, plus an additional 0.42% monthly real adjustment above inflation. * Debt to CAMESA has been normalized since May 2025; Edenor has paid 100% of current monthly energy purchases from CAMESA since April 2024 and is current on all installment payment plans for outstanding balances. * A regulatory asset claim for 2019-2023 tariff adjustment differences was submitted in October 2025, and the Argentine executive branch has submitted a draft bill to Congress to regularize these assets. * The ENRE approved a shift from bimonthly to monthly meter readings in December 2025 to improve consumption transparency, and new experienced leadership was appointed to the national Gas and Electricity Regulatory Agency in May 2026. * Cumulative value-added distribution tariff adjustments reached 20% for the first half of 2026, outpacing the 17% inflation rate over the same period. - Operational Performance Improvements * Collection rate remained strong at 96.27% for Q2 2026. First half 2026 operating expenses decreased 8% year-over-year to 603 billion pesos, driven by a 2025 OPEX optimization plan: salary expenses fell 2%, pension costs decreased 37%, material consumption declined 39% via better inventory management, and ENRE penalties dropped 24% due to improved service quality and updated regulatory evaluation mechanisms. * Total energy losses for Q2 2026 were 15.82%, with 9.56% of losses officially recognized by regulators in the tariff framework. AI-powered analytical tools and market discipline initiatives (including converting 4,863 informal connections to formal metered connections in Q2) are driving ongoing loss reduction efforts. * Service quality metrics reached record lows: average outage duration per customer was 5.6 hours (CIDI) and 2.7 hours (CISI), down 48% and 34% respectively from 2021 levels, exceeding all regulatory requirements. 100% of the high and medium voltage network can now be operated remotely. - Strategic Expansion and New Business * Edenor amended its corporate purpose in 2024 to enable expansion across the energy sector aligned with the energy transition and broader electrification. The company targets growth across electric transmission, generation and storage, electric mobility, oil and gas downstream, energy infrastructure, and natural gas distribution. * Edenor (jointly bidding with Andina Energy PLC) had its offer accepted to acquire YPF's 70% stake in MetroGas, pending regulatory approvals and a 20-year concession extension to 2047. The transaction will consolidate Edenor's position as a leading integrated energy utility serving the Buenos Aires metropolitan area, combining 3.41 million electricity customers with MetroGas' 2.4 million natural gas customers to unlock operational, commercial, and institutional synergies. - Financial and Credit Profile Updates * Multiple credit rating upgrades were secured in 2026: S&P upgraded the national scale issuer rating, and Moody's and Fix also upgraded national scale ratings, with mixed outlooks of stable and positive. * In July 2026, Edenor successfully issued $213 million in new Class 11 notes and reopened its Class 10 notes to reach $750 million in outstanding Class 10 notes. The company fully redeemed its Class 9 senior notes in August 2026, resulting in a manageable debt maturity profile with no maturities scheduled over the next 12 months.

Guidance

- Management expects full year 2026 EBITDA (excluding the 2025 one-off CAMESA settlement gain) to be higher than full year 2025 EBITDA, supported by positive underlying operating trends from tariff adjustments and ongoing cost reduction. - Management expects the MetroGas acquisition to close before the end of 2026, pending required regulatory approvals and concession extension. - The company maintains a conservative capital structure and strong liquidity position after recent debt transactions, with no need for additional significant financing outside of the planned MetroGas acquisition.

Segment performance

Edenor operates as a single core electricity distribution segment, with the following Q2 2026 financial performance: Total revenues were 918 billion pesos, up 10% year-over-year in real terms, driven by higher tariffs and reduced government subsidies. Total customer count grew 1.3% year-over-year to 3.41 million clients, with growth across residential, small/medium commercial, industrial, and wheeling customer segments. Energy sales increased 1.9% year-over-year to 5,676 gigawatts. Distribution margin for Q2 2026 rose 1% year-over-year to 335 billion pesos; year-to-date (first six months of 2026) accumulated distribution margin reached 748 billion pesos, up 7% year-over-year. Excluding a 225 billion one-off gain from the 2025 CAMESA debt settlement, first half 2026 EBITDA increased 94% year-over-year; reported first half 2026 EBITDA was 314 billion pesos, down from 386 billion pesos in the prior year period due to the 2025 one-time gain. Net financial expenses for Q2 2026 declined 28% year-over-year to 206 billion pesos, driven by reduced interest costs from the normalized CAMESA debt agreement. Reported net profit for Q2 2026 was 31 billion pesos, down 75% year-over-year due to the large one-time gain booked in Q2 2025; underlying operating profitability was positive after adjusting for this one-off effect. Q2 2026 CAPEX totaled 92 billion pesos, with accumulated first half 2026 CAPEX reaching 167 billion pesos. As of June 30, 2026, total debt outstanding was $1.159 billion, with net debt of $303 million.

Risks & headwinds

- The closing of the MetroGas 70% stake acquisition is subject to unmet conditions, including required government regulatory approvals and a 20-year extension of MetroGas' concession license; the timing of closing and change of control cannot be guaranteed. - The regulatory asset regularization draft bill for 2019-2023 tariff adjustment differences is still pending congressional approval, and the outcome and timing of this process is uncertain. - Future results are dependent on general economic conditions in Argentina, industry dynamics, regulatory stability, and inflation trends, which could cause actual results to differ materially from forward-looking projections.

Analyst Q&A

• Q: If Congress approves the regulatory assets regularization bill, how will the CAMESA debt be regularized, and what assumptions is management working with? /

  A: If the bill is approved, the outstanding CAMESA debt will be fully written off Edenor's balance sheet. The draft legislation already includes provisions for the corresponding income tax effects of the debt write-off, which will strengthen the company's balance sheet by removing the liability from company records.

• Q: When is the accepted MetroGas acquisition expected to close, and what is the structure of Edenor's joint bid with Andina Energy? /

  A: While the bid was submitted jointly with Andina Energy, Edenor will acquire the full 70% stake being sold by YPF, and will hold full control and cash flow rights to the stake. The transaction is subject to regulatory approvals and a concession extension; management expects closing to occur before the end of 2026.

• Q: Will the MetroGas acquisition trigger a mandatory tender offer (OPA) for the remaining 30% minority stake, and how will the offer price be calculated per Argentine regulations? /

  A: Yes, a mandatory OPA for the remaining 30% minority stake will be launched 30 days after the main acquisition closes. Per current CNV (local SEC) regulations, the offer price will be set at the higher of the acquisition price paid by Edenor and the 180-day average trading price of MetroGas stock, consistent with regulatory requirements.

• Q: What is Edenor's current refinancing strategy and key financial priorities after the recent debt issuances and the planned MetroGas acquisition? /

  A: Edenor has already raised all required liquidity to execute the MetroGas acquisition. There are almost no major debt maturities over the next year, so no additional significant refinancing or financing is needed in the near term. The company will focus on integrating the acquisition if it closes, with only minor additional financial activities planned over the coming months, and will optimize MetroGas' debt profile after closing.