Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$ 7.3 billion in 2025, with total EBITDA including non-recurring items at R$ 8.3 billion, reflecting operational resilience and strong performance across all sectors.

• Net profit was R$ 4.9 billion (including non-recurring effects), with recurring net profit at R$ 4.2 billion; the main difference was due to post-employment liability adjustments.

• Record investments of R$ 6.6 billion were made, mainly in distribution, supporting future revenue and profitability.

• Moody’s upgraded the credit rating to AAA in September 2025, with Fitch maintaining AAA and S&P at AA+.

• Dividend and JCP payments totaled R$ 3.5 billion, maintaining a 50% payout policy and high dividend yield.

Financial highlights

• Net income for 2025 was R$ 4.9 billion (down 31.17% YoY); recurring net profit was R$ 4.2 billion; recurring EBITDA was R$ 7.3 billion; total EBITDA was R$ 8.3 billion.

• Revenue reached R$ 42.75 billion, a 7.36% increase year-over-year.

• Dividend yield reached 14.9% in 2025, with total shareholder return at 17.5%.

• Leverage (net debt/adjusted EBITDA) stood at 2.3x at year-end 2025, with average debt maturity extended to 6.9 years.

• Operating cash flow was R$ 5.7 billion, with cash generated after dividends at R$ 270 million.

Outlook and guidance

• Strategic plan targets R$ 44 billion in investments over five years, with R$ 29 billion for distribution and a 2026 capex budget of R$ 6.7 billion.

• Leverage is expected to rise through the investment cycle, peaking before the 2028 tariff review, then declining.

• Focus remains on regulated sectors, renewables, digitalization, and customer-centric initiatives.

• The company targets net zero emissions by 2040 and aims to connect 7 GW of distributed generation by 2028.

• Open trading positions for 2027 and 2028 are being closed, with future energy sales planned for 2029 and beyond.