Brazil · Delayed Price · Currency is BRL Companhia Energética de Minas Gerais - CEMIG Earnings Call Transcripts
Fiscal Year 2026
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Consistent results with strong EBITDA and net income growth, supported by disciplined investments and robust cash generation. Distribution and transmission segments outperformed, while trading faced a one-time loss but is expected to recover in H2. Leverage remains manageable, with positive outlook ahead of the 2028 tariff review.
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Q1 2026 saw strong EBITDA and profit, robust investment in distribution, and healthy leverage. Hydrological risk and energy price volatility challenged generation and trading, but future margin recovery is expected. Investments and tariff review optimism remain high.
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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Challenging third quarter saw lower EBITDA and net profit due to client migration, hydrological risk, and market contraction, but recurring earnings and credit ratings remained strong. Major investments continued, supporting future growth and regulatory outcomes.
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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 EBITDA and net profit were achieved, driven by strong investments, divestments, and operational efficiency. Segment results were mixed, with distribution and transmission outperforming, while trading and gas faced headwinds. Dividend yield reached 15% and leverage remains safe.
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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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Focused investments in core regulated businesses and digital transformation have driven record CapEx, operational efficiency, and strong financial results, with a customer-centric approach and energy transition at the forefront. Strategic divestments, robust cash generation, and regulatory alignment support sustainable growth and future privatization potential.
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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.