Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q2 2026 earnings summary

Executive summary

• Recurring EBITDA reached R$2.5 billion in 2Q26, up 9.3% YoY, highlighting operational strength and cash generation supporting investments and shareholder returns.

• Net income declined 15.6% YoY to R$1.12 billion, mainly due to lower trading results, higher financial expenses, and non-recurring items.

• R$4.6 billion in new debt was raised to support investments and liquidity, with a strong cash position and favorable debt ratings.

• CapEx for the quarter was R$1.8 billion, with a focus on customer experience, grid resilience, and modernization.

• Shareholder remuneration included R$631 million in interest on capital, equivalent to R$0.22 per share.

Financial highlights

• Net operating revenue rose 3.4% YoY to R$11.16 billion; EBITDA margin improved to 20.1% (up 1.0 p.p. YoY).

• Recurring EBITDA increased 9.3% YoY to R$2.47 billion; recurring net income fell 15.6% to R$1.12 billion.

• Net debt/recurring EBITDA ratio increased to 2.58x, with net debt at R$13.5 billion.

• OPEX and EBITDA exceeded regulatory targets in 1H26 by R$416 million and R$666 million, respectively.

• Interest on capital of R$631 million was distributed.

Outlook and guidance

• Planned investment of R$6.73 billion for 2026, with 49% already executed in 1H26.

• Positive outlook for the next six months, expecting improved trading results and continued value generation from investments.

• Tariff adjustment of 6.5% effective May 2026 and tariff review in 2028 expected to support revenue growth and reduce leverage.

• Dividend yield expected to remain attractive, with a minimum payout of 50% of net income.

• Strategic focus remains on regulated businesses, grid modernization, and ESG commitments, including net zero by 2040.