Grupo EPM, the multi-utility conglomerate owned by the municipality of Medellin, reported consolidated revenue of $40.6 trillion COP (approx. $11 billion USD) for the full year 2025. Despite a year characterized by climate variability and increased regulatory pressure, the group saw net income rise to $5.3 trillion COP, a 9% increase compared to 2024 results. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $11 trillion COP ($2.98 billion USD).

The Medellín utility unit, EPM, contributed $20 trillion COP in revenue and $4.9 trillion COP in net income. Management attributed the stability of these figures to a diversified portfolio. Power generation remains the primary driver of profitability, accounting for 49% of net income, followed by energy distribution at 27%. The water, sewage, and waste management sectors contributed 15%, while transmission and natural gas accounted for 3% and 1% respectively.

In 2025, Grupo EPM obtained results that confirm its ability to advance in complex scenarios, reflecting work to achieve lasting efficiencies.” — John Maya Salazar, General Manager of EPM

Financial leverage remained within contractual covenants. The debt-to-EBITDA ratio for the group closed at 2.9x, comfortably below the 3.5x threshold required by many credit agreements. For the individual EPM entity, the ratio stood at 3.5x. This solvency allows the organization to continue its capital expenditure program, which saw $5 trillion COP ($1.36 billion USD) invested in infrastructure and social programs throughout the year.

John Maya Salazar, General Manager of EPM (photo courtesy EPM)

A significant portion of the capital budget was directed toward the Hidroituango hydroelectric project. Approximately $1 trillion COP was allocated to Stage 2 of the project, specifically turbine units 5 through 8. Beyond energy, the company continued funding the Unidos por el Agua and Unidos por el Gas initiatives, which target utility access for vulnerable populations in the department of Antioquia and other regions.

Dividend and Fiscal Transfers

During the 2025 fiscal period, EPM executed transfers totaling $2.6 trillion COP to the Distrito de Medellín. These funds, representing 55% of the utility’s 2024 net income, serve as a primary funding source for the municipal development plan. Additionally, the group generated $21.8 trillion COP in total added value across its areas of operation, including $3.7 trillion COP in taxes, fees, and contributions to the state.

The company is currently undergoing a structural reorganization intended to modernize its operating model. According to management, this transition is designed to improve strategic efficiency as the group faces future macroeconomic shifts. The group’s economic footprint in 2025 included $6.7 trillion COP paid to suppliers and the financial system, along with $3 trillion COP dedicated to direct and indirect employment costs. Total reinvestment into the group’s various subsidiaries reached $5.6 trillion COP to ensure infrastructure modernization.

Financial data and sustainability reports are routinely filed with the Superintendencia Financiera de Colombia. Interested parties can find further information on the company’s investor relations portal or through the Alcaldía de Medellín official website.

Above video: An aerial view of EPM’s Hidroituango hydroelectric dam(video © Loren Moss)

Colombia’s security forces alerted late Sunday Medellín Mayor Federico Gutiérrez and Antioquia Governor Andrés Julián Rendón to cancel a planned visit to the Hidroituango hydroelectric complex for Monday, March 2, after intelligence warnings of a possible drone attack and credible terrorist threat.

The visit, which included a press conference expected to draw around 100 journalists, was intended to showcase progress at the country’s largest hydroelectric project, now reported to be 95% complete. Instead, regional officials said army security recommendations prompted an abrupt suspension after the detection of unauthorized drone activity over the area.

“The recommendation of the National Army is that the trip be postponed given the detected presence of large, unauthorized drone overflights,” the Antioquia governor’s office said in a statement, adding that the devices were believed to be operated by the 36th Front of dissident Revolutionary Armed Forces of Colombia (FARC) guerrilla.

Officials said the threat was not speculative. Security teams warned that an attack could materialise during the public event, raising concerns not only for the two high-profile politicians but also for members of the press corps and technical staff.

Rendón told Caracol Radio that the drones had been observed manoeuvring persistently over the precise location where the press conference was scheduled to take place. The activity coincided with a recent military operation in the nearby municipality of San Andrés de Cuerquia, where troops seized a drone, explosives, detonators, radios and military-style clothing from the same dissident group.

“All of this is highly coincidental,” Rendón said, adding that authorities were analyzing whether the overflights formed part of reconnaissance ahead of a planned attack.

Gutiérrez said armed groups were seeking to destabilize the country and disrupt key infrastructure. “These terrorist groups want to shut down the country, to generate damage,” he said, pointing to ongoing threats against Empresas Públicas de Medellín (EPM), the state-owned utility responsible for the project.

The cancelled visit had both symbolic and operational significance. In addition to reviewing construction progress and the installation of four turbines, officials were expected to outline new revenue flows generated by the project for Medellín and the wider Antioquia department.

Hidroituango has long been a flagship infrastructure initiative, though it has also faced years of engineering setbacks, financial strain and political scrutiny.

The press event has been rescheduled to take place in Medellín’s La Alpujarra administrative complex under heightened security.

The incident underscores growing concern over the rapid adoption of drones by illegal armed groups. Once limited to reconnaissance, commercially available drones modified to carry explosives are now being used in targeted attacks across conflict-prone regions of the country, including the southwest departments of Nariño, Cauca and Valle del Cauca.

According to military data, more than 400 drone-related attacks have been recorded in Colombia over the past two years, reflecting a sharp escalation in both frequency and sophistication. Analysts say such devices offer armed groups a low-cost, high-impact means of striking military, civilian and infrastructure targets while reducing direct exposure.

Recent attacks in Antioquia highlight the trend. In rural Segovia, a drone-delivered explosive killed three members of a family and displaced more than 100 households amid clashes between FARC dissidents and the Gulf Clan criminal group last week. In Ituango, the nearrest municiplity to the power-generating damn, another drone attack targeted a fuel station using improvised explosives.

On Saturday, in southern Bolívar, a military helicopter was struck in a drone attack attributed to the National Liberation Army (ELN) guerrilla, leaving 14 soldiers injured. Colombian military officials say some armed groups may have received external training in the use of drones for covert operations.

Colombia’s armed forces are moving to adapt to the emerging threat, announcing last October the creation of a specialized “Drone Battalion” aimed at strengthening aerial surveillance and counter-drone capabilities. However, security experts warn that defending against small, low-flying devices — some costing as little as US$600 — remains a significant challenge, particularly in mountainous terrain like that surrounding Hidroituango.

The alleged plot has also raised concerns about a possible shift in targeting strategy by armed groups, from rural security forces to high-profile political figures and critical infrastructure ahead of the May 31 presidential elections.

While no attack ultimately took place, authorities say the decision to cancel the visit reflects the seriousness of the threat.

For now, officials are treating the incident as a direct warning of how Colombia’s long-running conflict is evolving – increasingly shaped by technology, and capable of reaching beyond traditional conflict zones into strategic economic and political targets.

The Board of Directors of Empresas Públicas de Medellín (EPM) approved a budget of $29.8 trillion COP for the 2026 fiscal year during its session on December 2, 2025. The budget is intended to guarantee the continued provision of public utility services—including energy, water, and natural gas—while addressing challenges related to regulatory demands, climate variability, the energy transition, and increasing consumer demand.

The budget allocates resources across all of EPM’s business segments, which include Power Generation, Transmission and Distribution, Gas, Water Provision, and Wastewater. The overall spending plan prioritizes projects focused on modernizing infrastructure, expanding service coverage, and optimizing operational efficiency.

Budget Distribution and Key Investments

The 29.8 trillion COP total budget is divided across four main areas, with investments receiving the largest allocation:

• Investment Expenses (48%): 14.1 trillion COP
  • Infrastructure investments: 4 trillion COP.
  • Long-term contracts for commercial operation and maintenance (registered as investment under current budgetary rules): 6 trillion COP.
  • Assets and inventory related to service provision and investments, provisions, and others: 3.2 trillion COP.
  • Capitalizations and other items: 907 billion COP.
• Functioning Expenses (28%): 8.5 trillion COP
  • This includes transfers to the District of Medellín totaling 2.4 trillion COP, taxes and contributions to the national and territorial governments totaling 1.2 trillion COP, and personnel expenses amounting to 1.6 trillion COP.
• Commercial Operation Expenses (10%): 3.1 trillion COP
  • This covers the purchase of energy, natural gas, and other inputs required to guarantee public service delivery.
• Debt Service (11%): 3.3 trillion COP
• Final Cash Availability (3%): 800 billion COP

Of the 4 trillion COP earmarked for infrastructure investments, 1.3 trillion COP is designated for the second phase of the Hidroituango Hydroelectric Project, a significant infrastructure development for the nation’s energy stability.

Financing and Operational Focus

The 2026 budget is projected to be financed primarily through 18.3 trillion COP (62%) in current revenues from services provided (energy, gas, water, and wastewater). This will be supplemented by 3.5 trillion COP (12%) from loans, with the remaining 26% sourced from dividends received from subsidiaries, accounts receivable recovery, and the initial cash balance.

The budget focuses on specific initiatives across EPM’s segments:

• Power Generation: Includes the expansion of generation infrastructure and the implementation of a master plan for fire protection at generation plants. Resources are also allocated for the modernization of the Guadalupe-Troneras power stations.
• Energy Transmission and Distribution: Focuses on infrastructure expansion and maintenance, replacement of cables and transformers across all voltage levels, and the control of non-technical energy losses.
• Water and Wastewater: Key projects include the Orfelinato – Villa Hermosa Pumping System, the expansion of the Yulimar circuit, and the modernization of the Ayurá water treatment plant. The budget also funds the construction, intervention, and repair of water and sewer networks.
• Gas: Initiatives include optimizing operations through the utilization of biogas from the La Pradera facility.

John Maya Salazar, General Manager of EPM, stated that the budget is aimed at enhancing operational efficiency, strengthening resource management, and ensuring service quality within a context of regulatory, climatic, and market challenges.

Headline photo courtesy EPM