Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$2.21 billion in Q2 2025, up 15.4% year-over-year, reflecting resilient operational performance and strong investment in distribution, generation, and gas infrastructure.

• Adjusted net profit rose 16.6% to R$1.32 billion, while reported net profit fell 29.7% to R$1.19 billion, mainly due to higher financial expenses and lower non-recurring effects.

• Revenue increased 14.3% year-over-year to R$10.79 billion, supported by higher energy supply and tariff adjustments.

• Investments in 1H25 totaled R$2.8 billion, up 12.6% year-over-year, focusing on distribution, generation, transmission, and gas modernization.

• Inaugurated nine new substations and launched a major solar plant (85 MW) as part of the energy transition strategy.

Financial highlights

• Adjusted EBITDA: R$2.21 billion (+15.4% YoY); Adjusted net profit: R$1.32 billion (+16.6% YoY); Net profit: R$1.19 billion (-29.7% YoY).

• Net revenue for Q2 2025 reached R$10.79 billion, up 14.3% from Q2 2024.

• Negative EBITDA impacts included a R$199 million RBSE compensation revision and R$76 million from submarket price differences.

• Reimbursement of tariff subsidies contributed R$375 million to results.

• Operational costs rose 2.49%, below inflation, with personnel costs down and outsourced services up.

Outlook and guidance

• Planned investments for 2025 set at R$6.35 billion, the largest in company history, with a focus on modernization, digitalization, and ESG leadership.

• Low leverage (net debt/adjusted EBITDA at 1.6x) supports continued investment.

• Management expects sufficient cash and operational cash flow to meet obligations for at least the next 12 months.