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

Executive summary

• Reported resilient 1Q25 results with net profit of R$1,038.7 million, down 9.9% YoY, and EBITDA of R$1,827 million, down 9.1%, despite trading segment headwinds and higher financial expenses.

• Revenue grew 8.7% YoY to R$9,844 million, driven by higher energy sales, tariff adjustments, and construction activities.

• Investments surged 18.6% YoY 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.

• Issued R$5 billion in debentures to support investment program and extend debt maturity.

Financial highlights

• Net revenue: R$9,844 million (+8.7% YoY); net profit: R$1,038.7 million (-9.9% YoY); EBITDA: R$1,827 million (-9.1% YoY).

• Investments in 1Q25 totaled R$1.21 billion, up 18.6% YoY.

• Net debt at R$10.5 billion; leverage at 1.41x adjusted EBITDA.

• Paid R$541 million in dividends and interest on equity.

• Cash and equivalents at R$3.24 billion at end-March 2025.

Outlook and guidance

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

• Focus on modernization, digitalization, ESG leadership, and expansion of core businesses.

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

• Management expects operational cash flow and liquidity to be sufficient for investments and debt servicing.

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