Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q1 2026 earnings summary

Executive summary

• EBITDA reached R$1.79 billion in Q1 2026, with net income of R$979 million, reflecting operational strength despite a 5.8% YoY decline in net income due to higher costs and financial expenses.

• Distribution segment outperformed with adjusted EBITDA up 26.7% YoY, driven by tariff adjustments and higher residential demand.

• Investments totaled R$1.48 billion in Q1 2026, up 22.1% YoY, focused on distribution and modernization.

• Shareholder remuneration reached R$658 million, with strategic acquisitions and R$80 million in post-employment cost reductions.

• Revenue growth was supported by tariff adjustments and increased residential consumption, but offset by declines in industrial, commercial, and gas segments.

Financial highlights

• Net operating revenue was R$10.46 billion (+6.3% YoY); EBITDA margin was 17.1% (down 1.5 p.p. YoY).

• Net financial expenses increased due to higher debenture charges; net debt/EBITDA ratio rose to 2.45x.

• Operating cash flow was R$1.5 billion, with cash and equivalents at R$1.38 billion at quarter-end.

• Dividend and interest on equity payments totaled R$658 million.

• Basic and diluted EPS was R$0.34 in Q1 2026.

Outlook and guidance

• Largest investment program in company history underway, with R$43.7 billion planned for 2026-2030 and a 2026 capex plan of R$6.73 billion.

• Management expects operational cash flow and credit lines to cover working capital, investments, and debt service for at least 12 months.

• Leverage is projected to rise until 2028, then decline post-tariff review, with credit ratings reaffirmed at AAA.

• Ongoing focus on operational efficiency, customer experience, and modernization.

• 76% of debt matures in 2029 or later, supporting financial flexibility.