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

Executive summary

• Recurring EBITDA reached BRL 7.3 billion in 2025, with non-recurring EBITDA at BRL 8.3 billion, reflecting operational resilience and strong performance across all sectors.

• Record investments of BRL 6.6 billion were made, mainly in regulated sectors, supporting future revenue and profitability.

• Net profit was BRL 4.2 billion recurring and BRL 4.9 billion including non-recurring effects, with the main difference due to post-employment liability adjustments.

• Moody’s upgraded the company’s credit rating to AAA in September 2025, marking a rapid improvement and reflecting improved financial strength.

• Dividend and JCP payments totaled BRL 3.5 billion, maintaining a 50% payout policy and high dividend yield.

Financial highlights

• Recurring EBITDA for the year was BRL 7.3 billion, with non-recurring EBITDA at BRL 8.3 billion.

• Recurring net profit was BRL 4.2 billion; non-recurring net profit was BRL 4.9 billion.

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

• Leverage increased to 2.3x due to investment financing, with average debt cost at 87% of CDI and average debt tenure of 6.9 years.

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

Outlook and guidance

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

• Investment focus remains on regulated sectors, with future revenue recognition tied to tariff reviews and ongoing expansion in network and renewables.

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

• Commitment to operational efficiency, regulatory compliance, and maintaining high dividend yields.

• Planned investments for 2026 are BRL 6.72 billion, targeting modernization and expansion.