Companhia Energética de Minas Gerais

Cemig reported recurring EBITDA of BRL 2.5 billion in 2Q26, up 9.3% year over year, and net income up 15.6% year over year. It also cited BRL 631 million of interest on capital, equal to BRL 0.22 per share, and said 1H26 CapEx totaled BRL 3.3 billion, or 49% of the BRL 6.7 billion full-year plan. Quarterly funding was BRL 4.6 billion. On the segment level, Cemig D EBITDA rose 21% year over year, Cemig GT EBITDA rose 10.6%, and Gasmig results declined as customer migration to the free market reduced volumes by 17%. Looking ahead, management said leverage was 2.58 in 2Q26 and expects it to rise through 2027 before easing after the 2028 tariff review; it also maintained that the 50% minimum dividend payout should support shareholder returns in 2026 and 2027.

Alexandre Ramos Peixoto opened his first earnings call as CEO by emphasizing confidence, continuity, and execution. He said Cemig is a “sound company” with consistent results, disciplined management, and a long-term strategy centered on customer service, operational quality, and a major investment cycle, especially in distribution. He also stressed Cemig’s integrated structure as a source of scale and resilience as Brazil’s power sector transforms.

Leonardo George de Magalhães said the quarter showed “sound results,” highlighting BRL 2.5 billion of operating performance, BRL 4.6 billion of funding, BRL 631 million of interest on capital, and BRL 3.3 billion of investment in 1H26. He explained that net income was affected by higher financial expenses from funding the capex program and by a BRL 191 million provision related to a free-market customer arbitration, while also noting a BRL 232 million expected credit losses reversal. He said leverage reached 2.58, that operating cash generation in 1H26 was close to BRL 4 billion, and that the company remains disciplined on capital allocation despite a large investment cycle.

Analysts asked about the impact of higher indebtedness and delayed tariff relief on 2027 profit and shareholder returns; management said the 50% statutory minimum dividend and ongoing earnings should still support attractive yields in 2026 and 2027, with a stronger tariff-driven benefit only in 2028. On El Niño, management said both distribution and generation/transmission are prepared and do not expect budget impact, citing robust maintenance, automation, contingency planning, and resilience measures. Questions on transmission auctions, data centers, and concession renewals drew cautious but positive answers: Cemig said it will participate only if returns are attractive, is exploring data centers carefully, and is optimistic about concession renewals after a favorable ANEEL note. On trading losses, management said the segment is settling positions amid market changes and expects better results in the second half and stronger results by 2028.