Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q4 2025 earnings summary

Executive summary

• Recurring EBITDA reached R$7.3 billion in 2025, with non-recurring/adjusted EBITDA at R$8.3 billion, reflecting operational resilience and strong sector performance.

• Net profit was R$4.2 billion recurring and R$4.9 billion including non-recurring effects, with a significant one-time gain from post-employment liability termination.

• Record investments of R$6.6 billion, mainly in distribution, supported future growth and were part of a five-year R$44 billion strategic plan.

• Moody’s upgraded the credit rating to AAA in September 2025; Fitch maintained AAA; S&P held AA+ with positive outlook.

• R$3.5 billion distributed in dividends and interest on equity, maintaining a 50% payout and high dividend yield.

Financial highlights

• Net revenue reached R$42.75 billion, up 7.4% year-over-year, with recurring EBITDA at R$7.3 billion and net profit at R$4.9 billion.

• Dividend yield was 14.9%, with total shareholder return at 17.5%.

• Leverage (net debt/EBITDA) stood at 2.3x at year-end 2025, with a covenant limit of 3.5x.

• Average debt cost was 87% of CDI, with average debt tenure extended to 6.9 years.

• Operating cash flow was R$5.7 billion, with cash generated after dividends at R$270 million.

Outlook and guidance

• Strategic plan targets R$44 billion in investments over five years, with R$29 billion for distribution and 2026 capex planned at R$6.7 billion.

• Leverage expected to rise through the investment cycle, peaking before the 2028 tariff review, then declining.

• Focus on asset modernization, market opening, operational efficiency, and ESG leadership, with net zero targeted by 2040.

• Open trading positions for 2027 and 2028 are being closed, with future energy sales planned for 2029 and beyond.

• Ongoing investment in network expansion, new substations, and renewable generation capacity.