Business Context and Reporting Period
Company: Energy Company of Minas Gerais (CEMIG)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter 2026 (ended June 30, 2026) and corporate updates through September 2026.
Business Overview: CEMIG is a Brazilian utility operating in electricity distribution, generation, transmission, and natural gas distribution. The filing includes 2Q26 earnings, shareholder notices, governance updates, and material facts regarding asset concessions and credit ratings.
Key Financial Metrics (2Q26)
| Metric | 2Q26 Value | 2Q25 Value | YoY Change |
|---|---|---|---|
| Net Operating Revenue | R$11,156.2 million | R$10,786.3 million | +3.4% |
| EBITDA | R$2,239.3 million | R$2,059.1 million | +8.8% |
| Adjusted EBITDA | R$2,472.4 million | R$2,261.5 million | +9.3% |
| Net Income | R$945.4 million | R$1,188.3 million | -20.4% |
| Adjusted Net Income | R$1,116.5 million | R$1,321.9 million | -15.5% |
| EBITDA Margin | 20.1% | 19.1% | +1.0 p.p. |
| Net Debt | R$19,358.1 million | R$12,228.6 million | +58.3% |
| Leverage (Net Debt/Adj. EBITDA) | 2.58x | 1.59x | +0.99x |
| Capital Expenditures (1H26) | R$3.28 billion | R$2.75 billion (1H25) | +19.2% |
Material Changes vs. Prior Period
- Distribution Segment (Cemig D): EBITDA grew 19.0% YoY, driven by a 6.5% tariff adjustment effective May 28, 2026, lower post-employment expenses, and a R$232.2 million positive impact from revising the Expected Credit Loss (ECL) methodology. Energy losses improved to 11.40%, below the regulatory limit.
- Trading Segment: EBITDA decreased by R$383.4 million YoY due to higher costs to close energy positions and a R$190.6 million provision from an arbitration award.
- Gas Segment (Gasmig): EBITDA declined 15.4% due to a 17.0% drop in distributed gas volume, primarily from industrial customers migrating to the free market.
- Financial Results: Net financial expenses increased 154.6% YoY to R$795.9 million, driven by higher gross debt, increased inflation (IPCA), and monetary adjustments on provisions.
- Debt Profile: Net debt increased significantly due to capital raising activities (R$4.61 billion raised in the quarter) to fund investments and extend maturities. 81% of debt now matures in 2029 or later.
Guidance, Outlook, and Material Events
- Credit Ratings: Standard & Poor's upgraded CEMIG's rating to "brAAA" (August 2026). The company now holds AAA ratings from Moody's, Fitch, and S&P.
- Shareholder Returns:
- First payout installment for FY2025 (Dividends + IoE) totaling R$1,548 million was paid in June 2026.
- New Interest on Equity (IoE) of R$630.5 million declared in June 2026, payable in two installments in 2027.
- Corporate Governance:
- Executive Board composition updated in June 2026 with new Vice Presidents for Finance, Generation/Transmission, and Distribution.
- Controlling shareholder (State of Minas Gerais) nominated new Board members and CEO in August 2026.
- CEMIG achieved 100% of the UN Global Compact's Transparency Movement targets four years ahead of schedule.
- Asset Concessions: The Ministry of Mines and Energy extended the concession for the Sá Carvalho Hydroelectric Power Plant for 30 years, effective August 31, 2026.
- Investment Outlook: Total investment plan for 2026–2030 is R$43.7 billion, with R$6.72 billion earmarked for 2026. Focus remains on regulated businesses, smart metering, and renewable generation.
Key Facts for Investor Verification
- Debt Leverage: Verify the sustainability of the increased leverage ratio (2.58x) given the significant rise in net debt and financial expenses.
- Trading Segment Volatility: Assess the impact of the R$190.6 million arbitration provision and exposure to short-term energy prices on future trading margins.
- Tariff Adjustments: Confirm the full realization of the 6.5% tariff adjustment impact on the distribution segment's cash flow in subsequent quarters.
- Gas Market Migration: Monitor the trend of industrial gas customers migrating to the free market and its long-term effect on Gasmig's revenue base.
- Executive Transition: Track the implementation of the new Executive Board and CEO nominations announced in August 2026.