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CEMIG reported first-quarter 2026 EBITDA of BRL 1.79 billion and profit of BRL 979 million, with management citing strong performance in its diversified operations and early expense savings from a restructuring agreement.
The biggest growth driver was the distribution business, where EBITDA rose 26.6% to about BRL 1.01 billion as CEMIG continued heavy investment in substations and network expansion while maintaining solid service indicators.
Management emphasized ongoing challenges from energy price volatility and hydrological risk in generation and trading, while also noting a long-dated debt profile, upcoming concession renewals and a continued BRL 44 billion investment plan.
Comp En De Mn Cemig ADS (NYSE:CIG), the Brazilian electric utility known as CEMIG, reported first-quarter 2026 EBITDA of BRL 1.79 billion and profit of BRL 979 million, while management highlighted continued investment in distribution, debt profile management and challenges tied to energy price volatility and hydrological risk.
Andrea Marques de Almeida, CEMIG’s CFO and investor relations officer, said the company’s diversified structure helped sustain results during the quarter. She said CEMIG invested BRL 1.48 billion in the period and paid BRL 658 million in shareholder remuneration. The company also completed what she described as a small acquisition of PCH Pipoca and Temacu in Mesquita.
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Almeida also pointed to early effects from a post-employment restructuring agreement recorded at the end of last year, saying it had already reduced expenses by BRL 80 million.
At the start of the call, Carolina Sena, CEMIG’s investor relations superintendent, said the appointment of Alexandre Ramos Peixoto as CEMIG’s new CEO had been approved. Peixoto replaces Reynaldo Passanezi Filho, whose departure was attributed to the term-limit restriction under Brazil’s State-Owned Enterprises Law No. 13,303/2016.
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Sena said that under Passanezi’s management, CEMIG carried out a financial recovery process, resumed investment levels and developed a strategic plan of approximately BRL 70 billion through 2030. She also said the company expanded substations, modernized the grid, eliminated historical bottlenecks and increased its market value from BRL 8 billion to BRL 45 billion.
Peixoto is a career employee of the company with experience in the Brazilian electric sector. Sena said he has worked at ANEEL, the Ministry of Mines and Energy and EBE, and previously served at CEMIG as regulatory and institutional relations officer.
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Distribution represented the largest share of CEMIG’s quarterly investment, with BRL 1.28 billion directed to the segment. Almeida said the company delivered six new substations and modernized one substation under the More Energy Program, while also adding 765 kilometers of low- and medium-voltage network.
Cemig D recorded a 26.6% increase in EBITDA, reaching about BRL 1.01 billion in the quarter. Almeida attributed the performance mainly to a 7.78% adjustment in Parcela B and an increase in residential consumption. She noted that residential tariffs are higher, which had a positive effect on revenue.
Management also discussed operating efficiency and service quality. Almeida said Cemig D remained within regulatory indicators for losses and delinquency was low. She highlighted a DEC indicator of 8.75, calling it the best in the company’s history, and said FEC also showed positive performance.
Costs and expenses were affected by third-party services, including preventive and corrective maintenance and right-of-way cleaning. Almeida said these services were tied to efforts to improve service quality for customers as the distribution investment plan advances.
CEMIG said higher energy price volatility and a lower GSF, or generation scaling factor, were significant challenges in the quarter. Almeida said energy prices moved from around BRL 59 per megawatt-hour in early 2025 to levels reaching BRL 382 per megawatt-hour, affecting the management of hydrological risk.
In generation, the company reported a BRL 49 million EBITDA impact from energy purchases used to address hydrological risk. Almeida said CEMIG’s GSF was 0.92 in the first quarter of 2026, compared with a level close to one in the prior-year period.
For Cemig GT, which includes generation, transmission and a portion of contracts from the trading business, management cited hydrological risk and higher-priced energy purchases as key factors. In transmission, lower IPCA inflation affected the contract asset remuneration.
The trading area also faced pressure from the closing of positions. Almeida said the main effect was price-related and also referred to credit events affecting the broader market. Marcos Vinícius de Castro Lobato, trading planning superintendent, said 2026 is a challenging year for the trading business due to lower margins, short-term market factors and submarket price differences, though he said the company expects some of these impacts to decline over time.
CEMIG said it continued working to align its debt maturity profile with its investment plan, particularly in distribution ahead of the 2028 tariff review. Almeida said the company reached an average debt maturity of 6.6 years, with 76% of debt due after the 2028 tariff review.
During the quarter, CEMIG raised BRL 2.6 billion for the distribution company through a debenture and a loan under Law 4,131. Almeida said the company reached leverage of 2.45 times net debt to recurring EBITDA, which she described as healthy, and said the debt cost was 89% of CDI.
In response to a question during the Q&A session about debt and high interest rates, Almeida said leverage is expected to rise as CEMIG executes a BRL 44 billion investment program over the next five years, with a peak expected in 2028 before declining after the tariff review. She said the company believes returns on its regulated investments, especially in distribution and transmission, exceed financing costs. Almeida also noted that CEMIG has AAA ratings from Fitch Ratings and Moody’s.
Asked about the 2028 tariff review, Almeida said CEMIG expects its distribution investments to be recognized in the review. She said the company is investing cautiously and expects the asset base expansion, net of depreciation, to affect EBITDA after the review.
Marco da Camino Ancona Lopez Soligo, chief generation and transmission officer, said discussions over the renewal of the Sá de Carvalho, Emborcação and Nova Ponte concessions are progressing. He said CEMIG has had “great contact and interaction” with the Ministry of Mines and Energy and ANEEL and expects renewals in the coming months before the concessions expire.
On managing hydrological risk, Marcos Vinícius said portfolio diversification helps reduce dependence on a single generation source. He said CEMIG’s portfolio includes hydroelectric plants as well as wind and solar components, and that the company also manages risk by contracting ahead of time. He said the company has reserves intended to avoid significant impacts over the year.
CEMIG also reported growth at Cemig SIM, which added seven new solar photovoltaic plants and 19 megawatts of capacity to its portfolio. Almeida said Cemig SIM posted a recurring EBITDA increase of around 100%. For Gasmig, she said margins were reduced as clients migrated to the free market, a trend management expects to continue over time.
Companhia Energética de Minas Gerais SA (Cemig ADS) is a leading Brazilian energy company primarily engaged in the generation, transmission, distribution and commercialization of electric power. Headquartered in Belo Horizonte, the company operates as a vertically integrated utility, serving residential, commercial and industrial customers across its concession areas. In addition to its core electricity business, Cemig maintains interests in natural gas distribution and distinct energy-related ventures, including renewable sources and infrastructure projects.
In its generation segment, Cemig manages a diversified portfolio that includes hydroelectric, photovoltaic and wind power plants.
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