Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2024 earnings summary

Executive summary

• Achieved record net income of R$7.1 billion in 2024, up 23.4% year-over-year, and record adjusted EBITDA of R$11.3 billion, up 32.3%, marking the best results in company history.

• Annual CapEx reached R$5.7 billion, reflecting strong investment execution and a 34.8% average annual growth since 2018.

• Maintained AAA Fitch rating, the highest in company history, reflecting strong cash generation and disciplined capital allocation.

• Major divestments included the sale of Aliança Energia and small hydro plants, reallocating resources to regulated segments.

• Strong ESG performance, with inclusion in DJSI for the 25th consecutive year and other major sustainability recognitions.

Financial highlights

• Net income reached R$7.1 billion (+23.4% YoY); adjusted EBITDA was R$11.3 billion (+32.3% YoY); 4Q24 EBITDA was R$1.9 billion, down 21.9% YoY.

• Dividend yield reached up to 15.1%, with R$1.9 billion in dividends to be approved at the 2025 AGM.

• Market value increased by R$7.2 billion in 2024, ending the year at R$35.1 billion.

• Capex totaled R$5.7 billion (+18% YoY), with significant investments in distribution, generation, transmission, and gas.

• Cash and equivalents at year-end ranged from R$1.9 billion to R$5.4 billion, maintaining strong liquidity.

Outlook and guidance

• Investment program targets R$39.2 billion for 2025–2029, with R$6.35 billion allocated for 2025 and a focus on modernization, reliability, and renewable expansion.

• Strategic plan targets R$23.5 billion in distribution investments from 2025–2029.

• Focus on digital transformation, technology investments, and further divestment of minority holdings.

• Preparing for renewals of generation concessions and the 2025 Capacity Reserve Auction.

• Regulatory transmission revenue (RAP) increased 18.8% for 2024–2025 cycle.