We are now going to see the results of the second quarter of 2025. I'm Cyrino, Director of Investor Relations, and today I'm going to be the master of ceremony for our event. We have Gustavo Estrella, our CEO, with us, Ms. Kedi Wang, our CFO, and other executives from the company. The whole presentation will be carried out in Portuguese, and we have simultaneous translation for English. Just click on the button on the top part of the platform, and if you want to see the presentation in English, it is also available in the Investor Relations site of CPFL Energia. I also like to inform all the participants that at the end of the event, we will start the session of Q&A.
All the questions will be done live, and to request this, all you have to do is click on the button Raise Hands also in the bottom part of the platform. The presentation of the event is being recorded. Now I'm going to give the floor to Gustavo Estrella, who's going to initiate the presentation of the results.
Thank you, Cyrino. Good morning to everyone. This is the highlights. Here is slide three. We have some highlights. First of all, the load in the concession area. We had a decrease in the second quarter of 2.2%, very much because of temperature. We're going to see a bit further on, affecting also commercial and residential. We can see that in the semester, this decreased 0.2% flat in relation to last year, but very much because of the reduction of temperature, which is concentrated in the second semester.
We have excellent news of the PDV, a drop of 37% if you compare to last year, and a drop that was accumulated of 34%. We're also going to see this. It's the ADA distribution. It's a much higher number than last year. Our EBITDA then ends with R$3.28 billion, and the net profit, 1.2%, growth of 7% in relation to last year. The net debt is stable in R$27.3 billion with a leverage of 2.7x of our net debt over the EBITDA. I think the good news was the disclosure of our rating international-wise, and so we were able to get the classification G. This is a BB B flat. It's two over the corporate rating. It was Moody’s, and I think it's important for us to access the external market, and that's what we're doing. It's a very positive rating.
Our CAPEX has reached R$1.4 billion with a growth of 5.1% in the second semester. We are an annual CAPEX of R$6.3 billion, and in the semester, a CAPEX of R$2.7 billion. We also had two readjustments, one in Paulista and the other one in RGE, both with a positive increase in Parcel B, 7.53% in Paulista and 4.90% in RGE. This is very important considering that Paulista had a negative total readjustment of 3%. Renewal of distribution concessions. We have the processes approved by ANEEL for Piratininga and RGE. We're awaiting the approval of the Ministry of Mines and Energy, the last process of CPFL Energia, CPFL Paulista, still in process of approval for ANEEL by ANEEL. Let's move to the next slide about energy sales. We had a drop of 1.6% in the second quarter, very much concentrated in residential and commercial, a drop of 4.8%, 4.2%.
We can see the lower part of the slide, a drop of temperature concentrated in the state of São Paulo, a drop of 2.1% in comparison to 2024, and 0.9% in Rio Grande do Sul, also comparing to 2024. I think this is very concentrated, and we follow with this effect of more or less 2% of the market as a whole, but also concentrated in residential and commercial. In the industry, it is stable with a growth of about 2%, and we highlight the food industry, which is the main segment in our growth with a growth of 5%. In the next slide, the sales of the first semester of 2024, we can see that the market is flat in relation to 2024.
We have some reflex residential and commercial, also due to the temperature less than the second semester, but decreased, compensating the growth of the industrial classes and rural classes as well. Now let's talk about delinquency. This is very important. We had a drop, a recurrent drop of 2024 compared to 2023, a drop of 37% in our delinquency. I think the big action has been our volume of cuts with an expressive growth in relation to 2023, going from 770,000 last year. We had a reflex of the floods down south and difficulty to cut in that area. Here we had an expressive increase, a direct reflex of the delinquency with an expressive decrease. We now have 0.84% in the semester in comparison to the first semester last year. This is good news, I would say, with a tendency to drop in the next semesters.
What is the tension is that we have this level of delinquency with a high volume of cuts, and this will be the trend of the scenario for the next quarter. Now let's go to losses. We have Paulista, RGE, and Santa Cruz with a new methodology of ANEEL. The loss, considering the impact of distributed Generation, we have Santa Cruz, and we have the challenge in Paulista and RGE. Here also, we have a journey of dropping or decreases, and we still have a challenge in Paulista and RGE in Piratininga. This change of criteria will happen in the next few months. We should incorporate this new vision, a more correct vision that considers the distributed Generation. Now let's talk about the performance of the hydro. The PLD with expressive growth with the use of hydrology was worse this year than last year.
We have R$216, more than last year. Again, fruit of the hydrology, the GSF, it goes from 39%- 101%. We have more hydro performances, has a correlation with what we live, and we have more Generation coming from hydroelectric plants. Now in slide nine, we have the wind farms performance. We have an increase of 11% in our net Generation. Here we have a very positive effect of a better performance of winds comparing to last year, and this is very much compensated by the curtailment effect. As you can see, the bottom left side of the slide, the curtailment has an expressive increase in relation to last year. We had an impact of, an accumulated impact of 8.6%, and this year the increase, the volume increases to 20.9%. The curtailment continues being a point of a lot of concern, and the impact comes now in the second semester.
We continue with a sectorial challenge with this curtailment topic growing and impacting the renewable energy. Now I'm going to give the floor to Kedi.
Thank you, Gustavo, and good morning, everyone. Now let's talk about the financial performance of the second quarter. Our EBITDA for the second quarter reached R$3.0 billion with an increase of 6.7% in the amount of R$191 million. In the next section, we're going to talk about the performance of each of the segments. First, in distribution, the EBITDA reached R$2.1 billion with a growth of 22% in the amount of R$376 million, which was mainly explained by the increased revenue in concession financial assets because of a higher IPCA and also a higher asset base. Last year, we had a negative impact of the flood in Rio Grande do Sul, which reduced the comparative basis of R$97 million in ADA, as explained earlier by Gustavo, that we are performing a better job. This year, we have a better performance of R$33 million because of the ADA.
We also have an increase of R$19 million in PMSO because of higher inflation. In Generation. In Generation, t he EBITDA reached R$806 million with a 5.9% decrease of R$50 million in amount. There are several reasons that contribute to this result. First, some one-off effects. The first one was because of the sale of Epasa. There was a R$153 million asset write-off, which was offset by the proceeds we received from the sale in the amount of R$60 million. The second one-off issue is because of early termination in some of the biomass contracts, including Pedra and also Epasa. The total amount is R$67 million. The third reason is a positive impact of R$78 million, which was favored by some inflation adjustment. The first one is, despite the impact of curtailment, a better performance of wind gave us a positive contribution in profit of R$45 million.
Our next page is about the performance in transmission. The IFRS EBITDA reached R$171 million. Some of the main reasons for the variances is there was an Epasa adjustment. That is also a one-off effect in the amount of R$150 million, and also the PMSO. In PMSO, we have a better performance of R$26 million. In regulatory EBITDA, the amount was R$211 million. The main reason was a drop adjustment for the 2024-2025 cycle. In Commercial, S ervices and Other sections, in last quarter, we have a performance with an EBITDA of - R$72 million. The main reason was because of a lower margin in the trading business. We have performed some early termination in some of the negative contracts and also a decrease of about R$10 million profit margin in the Service segment. Moving to the next slide. W e talk about the net income in the quarter.
The net income reached R$1.18 billion, with an increase of 7.8% or R$85 million. In addition to the better performance of EBITDA, the financial result was R$49 million better compared to the same quarter of last year. One of the most important reasons was because of the mark-to-market effect, which gave us a positive contribution to profit of R$98 million, which was mainly explained by a reduction in the credit spread curve, and also, t here was also a higher revenue adjustment related to the regulatory assets and the liability in the amount of R$49 million. This effect was partly offset by an increase of R$84 million in expenses of net debt, which was because of a higher debt balance and also higher CDI and IPCA. The tax was R$122 million, which was in line with the EBITDA. In the next slide, it's about the performance in the first half of the year.
The total EBITDA for the first half year reached R$6.9 billion with an increase of R$2.6 billion, mainly due to the contribution of the Distribution segment, including a favorable ADA and a Parcel B income, and also a higher Concession Financial Asset revenue. In the Generation segment, we had an 8.3% reduction in the impact, mainly because of some one-off events, as well as a curtailment, which reached R$131 million in the first half of 2025. We have a negative impact of R$96 million. The regulatory result of the transmission section was mainly impacted by the drop decrease for the 2024 and 2025 cycle, while the other segments had a decrease due to lower profit margin. Moving to the next slide. O ur net income for the first half of the year decreased by 1.9%, totaling R$2.8 billion.
The financial result was mainly impacted by an increase in expenses of net debt because of higher CDI and inflation in the amount of R$309 million, which was offset by an increase of mark-to-market of R$259 million. Depreciation was higher because of a higher asset base, and also, tax is higher related to a better EBITDA. The next page, we talk about our debt portfolio. We have the debt in a covenant criteria that ended in the year with R$27.3 billion in net debt. The adjusted EBITDA was R$30.1 billion. Our net debt to EBITDA was 2.07. What was worth mentioning is we received an international rating of Baa2 by the rating agency of Moody’s, which was two notches above the sovereign rating of Brazil.
That is a recognition of our solid financial situation, our sound strategy, and also the ability of the operation, which will give us an advantage for future international fund raising. Also, we have the funding. We have raised about R$2.5 billion of funding in the last quarter with an average term of 8.07 years. With this debenture issuance, we were able to extend the maturity of our debt, as we will see in the next slides. Here, we have our debt nominal cost, which is about 14.3%. That is higher because both CDI and IPCA are getting higher. For our portfolio of the debt, as you can see, it's mainly about 70% of the debt is linked to the index of CDI and about 24% indexed to IPCA.
The coverage of our short-term amortization is about 0.97x for our short-term amortization, and the average tenure of the debenture is about 4.3 years. The next slide is for CAPEX performance of the last quarter. In the second quarter, we have invested R$1.4 billion, which is 5.1% more than the previous year, and in line with our CAPEX plan. In the breakdown of the segment, in the Distribution segment, it reached R$1.2 billion. Most of the investment goes to customer service, expansion projects, system improvements, and modernization. In Generation, we have invested about R$51 million in the maintenance plan of our hydropower plants and Wind Farm and in T ransmission, the total investment was about R$166 million. Mainly goes to reinforcements and improvements of our lines and substations. In Trading and Services segment, the total investment was about R$6 million.
In the first half of 2025, we have invested about R$2.7 billion, which reached 41% of the CAPEX plan of the year. Now I'll give the floor back to Gustavo, please.
Well, I believe to finish, we have the program called CPFL in Hospitals. This is over R$320 million invested. We have a new project here in the headquarters of Passo Fundo. The investment is R$8 million, and it. The project has the same design of the hospitals so that we can attend in a centralized way all the basic health units of Passo Fundo. It's a format which is a bit different, and the expectation is it's something that we can scale to other cities. The idea is that we follow through with this project with important reflexes, not only in the hospitals, but also for the communities of our concession area and for our business. I think we have a successful project with a high volume, almost 50 MW, which have already been installed. The perspective is to continue investing in hospitals long term.
Thank you, Gustavo. Thank you, Kedi, for your presentation. Now we're going to open for questions and answers in the order in which they come. Just reinforcing, the questions will be asked live. All you have to do is click on the button Raise Hands at the bottom part of the platform. We're going to start here with the first question. It comes from Andrés Amparo from Santander. Good morning, Andrés. Thank you for your participation. Let's move forward to your question.
Hello, everyone. I have two questions. First of all, I'd like to know about what was your interpretation of what was decided in the CTF and if there's any expectation in relation to any change from now on. I think the big question that has showed up in the market, if we've...
The second question I'd like to hear about you, if you have any authorization of the process that's going on in ANEEL about Piratininga.
Good morning. I'm responsible for the legal part. As for the judgment, to have clarity of what was decided, we're going to have to see what the agreement was. It is still early for us to conclude anything about the session that occurred last week. After the decision of Anatel a few months ago, we have the proposal according to values in ANEEL, our values. ANEEL is evaluating. The idea is to advance with the payment. This is in a phase of evaluation. I think in September, we will conclude this evaluation.
When you say agreement, you mean to pay?
Yeah, we put the updated values there. The idea is to pay in installments. It's their evaluation how they're going to help with that. If there's no possibility of agreement, then it'll go to court.
Perfect. Thank you, Gustavo.
Thank you, Andrés, for your question.
Well, people, we don't have any other questions. If you have any questions afterwards and you want to get into contact with me or with our team for us to clarify any point that might have been pending, before giving the final words for Gustavo, I'd like to invite you once more for our CPFL Investor Day. It'll take place on the 3rd of September, 2025. It'll be in São Paulo. The invite was sent to you, so register. We count on the participation of everyone. Now we have the QR code here on the screen, but you, of course, have received the invitation as well. If you have not received the invitation, please contact me.
Now I'm going to give a call to Gustavo Estrella for his final considerations and for the closing of this event.
Well, I thank you for the participation and our call of results. I think it's a robust and stable result, which is a bit of our perspective looking to the next month. In fact, two points to call attention. The first one is the expectation of ending the renewal process of the concessions during the next month. I think the process is moving in a positive way for the Distribution segment. We have this vision and long-term view of the investments, which are high. The second topic, which I think is an important topic, is the curtailment issue. We have to go after ways of leading with this. This is something that we will be doing in the next few months to find a solution.
I thank you all very much, and I wish you a wonderful day.