Companhia Energética de Minas Gerais - CEMIG (CMIG4) Q1 2025 earnings summary

Executive summary

• Delivered resilient Q1 2025 results with EBITDA of R$1.83 billion and net profit of R$1.04 billion, despite trading segment headwinds and higher financial expenses.

• Executed the largest investment program in company history, with CapEx up 18.6% YoY to R$1.21 billion in 1Q25, focused on modernization, expansion, and regulated infrastructure.

• Maintained a balanced business portfolio and strong ESG leadership, with 100% renewable energy sources and top sustainability ratings.

• Emphasized efficiency, regulatory compliance, and organizational restructuring, including regionalization and IT modernization.

• Declared R$541 million in dividends and interest on equity, with a stable dividend policy at 50% of net profit.

Financial highlights

• Q1 2025 EBITDA was R$1.83 billion, down 9.1% YoY; net profit was R$1.04 billion, down 9.9% YoY.

• Net revenue reached R$9.84 billion, up 8.7% YoY; gross profit was R$1.84 billion, down 9.1% YoY.

• Investments in 1Q25 totaled R$1.21 billion, up 18.6% YoY.

• Net debt stood at R$10.5 billion, with leverage at 1.41x adjusted EBITDA; average debt maturity extended to 5.5 years.

• Paid R$541 million in dividends and interest on equity.

Outlook and guidance

• Planned investments for 2025 total R$6.35 billion, as part of a R$39.2 billion program through 2029.

• Over 75% of investments are dedicated to network and infrastructure, with results expected post-2028 tariff review.

• Tariff adjustment in May 2024 increased average consumer tariffs by 7.32%.

• Ongoing focus on modernization, digitalization, and ESG leadership.

• Dividend policy remains unchanged at 50% of net profit.