Business Context and Reporting Period
Company: Energy Company of Minas Gerais (CEMIG)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: First Quarter 2026 (1Q26), ending March 31, 2026.
Key Events: The filing includes the election of a new CEO (Alexandre Ramos Peixoto), 1Q26 earnings results, changes in equity interest, and the completion of acquisitions in distributed generation.
Key Financial Metrics (1Q26)
| Metric | 1Q26 (R$ Million) | 1Q25 (R$ Million) | YoY Change |
|---|---|---|---|
| Net Operating Revenue | 10,462.5 | 9,844.2 | +6.3% |
| EBITDA | 1,788.7 | 1,827.2 | -2.1% |
| Adjusted EBITDA | 1,788.2 | 1,799.1 | -0.6% |
| Net Income | 979.0 | 1,038.7 | -5.8% |
| Adjusted Net Income | 979.0 | 1,020.5 | -4.1% |
| EBITDA Margin | 17.1% | 18.6% | -1.5 p.p. |
| Net Debt | 17,844.0 | 16,795.5 | +6.2% |
| Leverage (Net Debt/Adj. EBITDA) | 2.45x | 2.30x | +0.15x |
| Capital Expenditures (Capex) | 1,476.7 | 1,209.4 | +22.1% |
Material Changes vs. Prior Period
- Revenue Growth: Net operating revenue increased 6.3% YoY, driven primarily by a tariff adjustment effective May 2025 (average impact of 7.78%) and higher CVA (Variation Compensation Account) revenues.
- EBITDA Decline: Consolidated EBITDA fell 2.1% YoY. This was caused by a R$197.7 million reduction in trading activity EBITDA due to higher costs to close short positions and lower hydrological generation factors (GSF), partially offset by a R$191.0 million increase in Distribution EBITDA.
- Cost Reductions: Adjusted post-employment expenses decreased by R$80 million due to the termination of a health plan obligation following a labor court agreement.
- Operational Volume: Distributed energy (excluding DG) declined 3.2% YoY, driven by lower industrial consumption (-6.2%) and rural consumption (-6.4%), while residential consumption grew 2.6%.
- Debt Profile: Net debt increased 6.2% to R$17.8 billion. The company raised R$2.61 billion in April 2026 (debentures and loans) to extend maturities; 76% of debt now matures in 2029 or later.
Guidance, Outlook, and Management Commentary
- Management Changes: Alexandre Ramos Peixoto was elected CEO on May 7, 2026, succeeding Reynaldo Passanezi Filho.
- Strategic Acquisitions: Cemig SIM completed the acquisition of 11 distributed generation (DG) photovoltaic plants (26.2 MWp) for R$155 million on June 3, 2026.
- Investment Plan: The company is executing its largest investment program in history, with R$43.7 billion planned for 2026–2030, including R$6.72 billion in 2026. Focus remains on regulated businesses (Distribution and Transmission).
- Dividends and IoE: The Annual Shareholders' Meeting approved mandatory dividends and Interest on Equity (IoE) totaling R$3.51 billion for fiscal year 2025. A new dividend of R$676 million was declared in April 2026.
- Operational Efficiency: Energy losses were maintained at 11.41%, below the regulatory limit of 11.48%. The Equivalent Interruption Duration (DEC) reached a record low of 8.75 hours.
- Risks: Forward-looking statements are subject to risks including hydrological conditions, energy market volatility, regulatory changes, and macroeconomic factors.
Investor Verification Checklist
- Tariff Adjustment Impact: Verify the sustained revenue contribution from the 7.78% tariff adjustment effective May 2025.
- Trading Volatility: Assess the exposure to energy price volatility in the free market and its impact on future EBITDA, given the R$197.7 million hit in 1Q26.
- Debt Maturity Profile: Confirm the extension of debt maturities beyond the next tariff review cycles to ensure financial flexibility.
- Customer Migration: Monitor the rate of industrial and commercial customer migration to the free market and distributed generation (DG), which is reducing captive market volumes.
- Post-Employment Liabilities: Validate the permanence of the R$80 million cost reduction related to the health plan obligation settlement.