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

Executive summary

• EBITDA reached R$1.79 billion in Q1 2026, with net profit of R$979 million, reflecting operational strength and resilience despite a 0.6% YoY decrease in EBITDA and a 4.1% drop in net income.

• Investments totaled R$1.48 billion, up 22.1% YoY, primarily in distribution, supporting growth and modernization.

• Shareholder remuneration reached R$658 million, with interest on capital declared at R$0.23 per share.

• Strategic acquisitions, including Pipoca and Temacu hydro plants and Timóteo-Mesquita TL, and post-employment restructuring led to R$80 million in expense reductions.

• Net operating revenue rose 6.3% YoY to R$10.46 billion, driven by tariff adjustments and higher energy prices.

Financial highlights

• EBITDA was R$1.79 billion (-0.6% YoY); net income was R$979 million (-4.1% YoY); EBITDA margin was 17.1%.

• Net debt/EBITDA increased to 2.45x, with net debt at R$17.82 billion.

• Operating cash flow was R$1.5 billion, with a negative cash delta due to high capex.

• Average debt maturity extended to 6.6 years; 76% of debt matures after 2028.

• Dividend yield reached 13.41% (PN shares), 10.1% (ON shares).

Outlook and guidance

• Largest investment program in company history underway, with R$43.7–44 billion planned for 2026–2030, peaking in 2028.

• 2026 capex plan set at R$6.72–6.73 billion, focusing on modernization and reliability.

• Management is optimistic about future tariff recognition, EBITDA rebuilding, and asset base growth of R$22 billion.

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