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

Executive summary

• Adjusted EBITDA reached R$2.2 billion in 2Q25, up 15.4% year-over-year, reflecting resilient operational performance.

• Adjusted net profit rose 16.6% to R$1.3 billion compared to 2Q24, while reported net profit was R$1,188 million, down 29.7% year-over-year.

• 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 85 MW solar plant as part of the energy transition strategy.

• Concession extensions secured for three power plants through the GSF auction, strengthening long-term sustainability and revenue predictability.

Financial highlights

• Adjusted EBITDA: R$2.2 billion (+15.4% YoY); Adjusted net profit: R$1.3 billion (+16.6% YoY); Net revenue for 2Q25 was R$10,786 million, up 14.3% year-over-year.

• Negative EBITDA impacts included a R$199 million non-cash effect from RBSE methodology review and R$76 million from 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.

• Dividend yield for preferred shares reached 17.72% at the end of 2Q25.

Outlook and guidance

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

• Multi-year investment plan of R$39.2 billion for 2025-2029.

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

• Interest on equity of R$596.7 million declared, to be paid in 2026.

• Expectation that submarket trading losses will normalize as ONS reviews criteria.