Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q3 2025 earnings summary

Executive summary

• Net profit for 3Q25 was R$797 million, down 75.7% year-over-year; adjusted net profit was R$780 million, down 30.2% from 3Q24, mainly due to non-recurring gains in the prior year and lower adjusted EBITDA.

• Recurring EBITDA reached R$1.5 billion in 3Q25, down 16.3% year-over-year, reflecting operational resilience amid market challenges and adverse hydrological conditions.

• Revenue grew 4.6% year-over-year to R$10.62 billion, driven by higher energy sales volumes and tariff adjustments.

• Major investments continued, with R$4.73 billion invested in 9M25, a 17% increase over 9M24, marking the highest investment in company history.

• Moody’s upgraded the credit rating to AAA in September 2025; recognized as the best energy company in Brazil and awarded for transparency and ESG practices.

Financial highlights

• Net revenue: R$10.62 billion (+4.6% YoY); gross profit: R$1.6 billion (-3.5% YoY).

• Net profit: R$797 million (-75.7% YoY); adjusted net profit: R$780 million (-30.2% YoY).

• EBITDA (IFRS): R$1.5 billion (-69.7% YoY); adjusted EBITDA: R$1.47 billion (-16.3% YoY).

• Net financial expenses increased by R$214.5 million YoY, mainly due to higher debt and Selic rate.

• Dividend and interest on equity paid: R$1.74 billion in 9M25.

Outlook and guidance

• Planned investment of R$39.2 billion for 2025-2029, with R$6.35 billion in 2025, focusing on modernization, reliability, and expansion of renewable generation and smart grid infrastructure.

• Management expects sufficient cash and operational cash flow to meet obligations for at least the next 12 months.

• Strategic focus remains on client satisfaction, value creation, innovation, ESG, and operational efficiency.

• Continued strong liquidity and prudent financial management, with low leverage (net debt/adj. EBITDA at 1.76x).