Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 was R$1,038.7 million, down 9.9% year-over-year, mainly due to negative impacts from price differences between energy submarkets affecting the trading/commercialization segment.

• Consolidated EBITDA reached R$1,827 million, a 9.1% decrease from 1Q24; adjusted EBITDA was R$1,799 million, down 9.6%.

• Revenue grew 8.7% year-over-year to R$9,844 million, driven by higher energy sales, supply, and infrastructure construction revenues.

• Investments surged 18.6% year-over-year to R$1.21 billion in 1Q25, with a focus on modernization, expansion, and regulated infrastructure.

• Maintained leadership in the Brazilian electricity sector, with 100% renewable energy sources and top ESG ratings.

Financial highlights

• Net revenue: R$9,844 million (+8.7% YoY); net profit: R$1,038.7 million (-9.9% YoY); adjusted EBITDA margin was 18.28% in Q1 2025.

• Net finance expenses increased 37.9% YoY to R$249.6 million, mainly due to higher debt and inflation.

• Operating expenses rose 12.2% YoY, with energy purchased for resale up 21.5% and construction costs up 30.5%.

• Dividend and interest on equity payments totaled R$541 million in Q1 2025.

• Cash and equivalents at quarter-end were R$3,244 million, up from R$1,898.2 million at year-end 2024.

Outlook and guidance

• Planned investment of R$6.35 billion for 2025, as part of a R$39.2 billion program through 2029.

• Tariff adjustment effective May 2024 increased average consumer tariffs by 7.32%.

• Strategic focus on modernization, digitalization, ESG leadership, and expanding transmission assets.

• Cash and operational cash flow expected to be sufficient for working capital, investments, and debt service for at least the next 12 months.

• Dividend policy remains unchanged at 50% of net profit.