Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$2.212 billion in 2Q25, up 15.4% year-over-year, reflecting resilient operational performance, while consolidated EBITDA was R$2.009 billion, down 15.3% due to RBSE remeasurement and higher energy purchase costs.

• Adjusted net profit rose 16.6% to R$1.322 billion, but reported net profit fell 29.7% to R$1,188 million, mainly due to non-recurring RBSE asset reduction and lower distribution and trading results.

• Investments in 1H25 totaled R$2.8 billion, up 12.6% year-over-year, focusing on distribution, generation, transmission, and gas infrastructure.

• Inaugurated nine new substations and launched a major solar plant (85 MW) as part of the energy transition strategy.

• Tariff adjustment effective May 28, 2025, resulted in an average increase of 7.78% for consumers.

Financial highlights

• Net revenue for 2Q25 was R$10,786 million, up 14.3% year-over-year, driven by higher energy supply volumes and tariff adjustments.

• Adjusted EBITDA: R$2.212 billion (+15.4% YoY); Adjusted net profit: R$1.322 billion (+16.6% YoY); reported net profit: R$1,188 million (-29.7% YoY).

• Negative EBITDA impacts included a R$199 million non-cash effect from RBSE methodology review and submarket price differences.

• Reimbursement of tariff subsidies contributed R$375 million to results.

• Operational costs rose 2.49%, below inflation, with personnel costs down and outsourced services up.

Outlook and guidance

• Planned investments for 2025 set at R$6.35 billion, the largest in company history, with a focus on modernization, digitalization, and ESG leadership.

• Low leverage (net debt/adjusted EBITDA at 1.6x) supports continued investment.

• Management expects operational cash flow and liquidity to remain sufficient for working capital, investments, and debt service over the next 12 months.

• Ongoing investments in distribution and gas infrastructure, with major projects scheduled for completion by 2026.

• Strategic focus on portfolio optimization, transmission asset acquisitions, and capital allocation to reinforce core businesses.