Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q1 2026 earnings summary

Executive summary

• New CEO Alexandre Ramos Peixoto appointed, continuing financial recovery, infrastructure expansion, and strategic investment planning through 2030.

• Net operating revenue rose 6.3% YoY to R$10.46 billion, driven by tariff adjustments and higher energy prices.

• EBITDA reached R$1.79 billion, with net profit of R$979 million for Q1 2026; distribution segment saw a 26.7% YoY increase in adjusted EBITDA.

• Capex reached R$1.48 billion (+22.1% YoY), focused on distribution and regulated businesses.

• Shareholder remuneration totaled R$658 million; small hydro acquisitions expanded the portfolio.

Financial highlights

• Net operating revenue: R$10.46 billion (+6.3% YoY).

• EBITDA: R$1.79 billion; net profit: R$979 million for Q1 2026, in line with prior year.

• Operating cash flow reached R$1.5 billion, with significant investments and negative cash delta due to high capex.

• Leverage at 2.45x net debt/recurring EBITDA; net debt at R$17.82 billion; average debt maturity extended to 6.6 years.

• Cost of debt at 89% of CDI, with recent funding of BRL 2.6 billion for distribution.

Outlook and guidance

• Largest investment program in company history underway, with R$43.7 billion planned for 2026-2030.

• 2026 capex plan of R$6.72 billion, focusing on modernization and reliability.

• Tariff review in 2028 anticipated to recognize asset base growth and support EBITDA rebuilding.

• Leverage projected to rise until 2028, then decline post-tariff review.

• Optimism regarding continued value generation and AAA credit ratings.