Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2024 earnings summary

Executive summary

• Achieved record net income of R$7.1 billion in 2024, up 23.45% year-over-year, and record EBITDA of R$11.3 billion, driven by tariff reviews, asset sales, and operational efficiency.

• Completed the sale of Aliança Energia for R$2.7 billion and several small hydro plants, reallocating resources to regulated segments and optimizing capital allocation.

• Invested R$5.7 billion in infrastructure, with a 34.8% average annual investment growth since 2018, delivering new substations and expanding renewable generation.

• Maintained AAA Fitch rating, the highest in company history, reflecting strong cash generation and disciplined capital allocation.

• Recognized for ESG leadership, included in the Dow Jones Sustainability Index for the 25th consecutive year and other major sustainability awards.

Financial highlights

• Net revenue grew 8.1% to R$39.8 billion; EBITDA rose 32.3% to R$11.3 billion; net income increased 23.4% to R$7.1 billion.

• 4Q24 EBITDA was R$1.9 billion, down 21.9% year-over-year; net profit for 4Q24 was R$998 million, down 47.1%.

• Dividend yield reached 15.1%, with R$3.7 billion in dividends and interest on equity declared for 2025.

• Market value increased by R$7.2 billion in 2024, ending the year at R$35.1 billion.

• Adjusted EBITDA margin reached 28.3%, and earnings per share were R$2.49.

Outlook and guidance

• Strategic plan for 2025–2029 targets R$59.1 billion in investments, focusing on customer satisfaction, value creation, innovation, ESG, and security.

• Planned R$6.35 billion in investments for 2025, with major allocations to distribution, generation, and gas infrastructure.

• Focus on digital transformation, technology investments, and further divestment of minority holdings.

• Preparing for renewals of generation concessions and the 2025 Capacity Reserve Auction.

• Ongoing expansion in distributed generation, digitalization, and customer-centric initiatives.