Brazil · Delayed Price · Currency is BRL Companhia Energética de Minas Gerais - CEMIG Earnings Call Transcripts
Fiscal Year 2025
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Recurring EBITDA reached BRL 7.3 billion in 2025, with record investments of BRL 6.6 billion and a recurring net profit of BRL 4.2 billion. Leverage rose to 2.3x, and the company maintained a 14.9% dividend yield, while extending key concessions and earning top sustainability awards.
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Recurring EBITDA fell 16.3% and net profit dropped 30.2% year-over-year, mainly due to client migration, market contraction, and non-recurring events in 2024. Despite these challenges, a record BRL 4.7 billion was invested, and leverage remains conservative at 1.76x EBITDA.
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Adjusted EBITDA rose 15% year-over-year to BRL 2.2 billion, supported by strong investment in distribution and successful concession extensions. Net debt/EBITDA stands at 1.59x, with a robust cash position and ongoing focus on efficiency and regulatory compliance.
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Q1 2025 saw resilient results with BRL 1.8 billion EBITDA and BRL 1 billion net profit, despite trading headwinds. Investments and modernization continue, with leverage at 1.4x and a stable dividend policy. Hydrological volatility and regulatory developments remain key risks.
Fiscal Year 2024
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Record-high EBITDA and net profit were achieved, driven by strong investments, divestments, and operational efficiency. Sustainability and digital transformation advanced, while segment results were mixed due to trading margin declines and lower industrial gas demand.
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Achieved record EBITDA and AAA credit rating, driven by the Aliança sale and tariff review. Investments and cash generation remain strong, with leverage expected to rise moderately as the company pursues major growth and a potential shift to a corporation structure.
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The company is executing a record BRL 49 billion CapEx plan focused on regulated businesses in Minas Gerais, with strong financial performance, consistent dividends, and a customer-centric strategy. Divestments, network modernization, and energy transition initiatives are driving efficiency and future growth, while gradual leverage increase supports ongoing investments.
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Consistent results with Q2 EBITDA up nearly 30% year-over-year, strong cash generation, and a 40% increase in 2024 investments. Segment performance was robust, with notable gains in distribution and gas, and ongoing focus on operational efficiency and dividend payments.