CEMIG disclosed its third‑quarter 2025 results on November 14, reporting revenue of BRL 10.62 billion, a 5.4% year‑over‑year increase, while net income plunged 76% to BRL 796.7 million and adjusted EBITDA fell 16.3% to BRL 1.50 billion. The company’s earnings per share of BRL 0.24 beat the consensus estimate of BRL 0.20, but the profit decline was driven by a 4.4% contraction in the overall energy market and higher spot‑price losses in trading and generation.
The revenue rise was largely driven by a 7% increase in the distribution segment, fueled by a BRL 3.6 billion investment in substations and a 4% uptick in retail sales. Generation revenue slipped 12% as lower spot prices and a shift of customers to the free market reduced sales, while the transmission segment remained flat. These segment dynamics explain the modest revenue growth despite a challenging macro environment.
Net income fell sharply because the company incurred a BRL 2.48 billion loss on trading and generation, offsetting gains in distribution. Adjusted EBITDA also missed the analyst estimate of BRL 1.79 billion, falling to BRL 1.47 billion, reflecting higher input costs and the impact of market contraction. Revenue, however, beat the consensus estimate of BRL 9.28 billion, underscoring the resilience of the distribution and renewable generation businesses.
Management maintained its full‑year guidance, keeping revenue at BRL 10.6‑10.8 billion and adjusted EBITDA at BRL 1.47‑1.55 billion, unchanged from the prior quarter. CEO Reynaldo Filho emphasized confidence in the company’s investment plan and the stability of its leverage, while CFO Andrea de Almeida highlighted disciplined capital allocation and the continued focus on renewable energy and smart‑meter deployment.
Shares of CEMIG fell more than 3% in pre‑market trading on November 14, reflecting investor concern over the lower adjusted net profit. Analysts noted the miss on net income and EBITDA but acknowledged the revenue beat, indicating that profitability pressures outweighed the company’s revenue growth. The market reaction underscores the importance of earnings quality to investors.
Despite the profit decline, CEMIG’s triple‑A credit rating remains intact, and the company’s strategic investments in distribution infrastructure and renewable generation position it for long‑term growth. The company’s focus on cost discipline, coupled with a robust investment plan, suggests that it is navigating short‑term headwinds while maintaining a trajectory toward sustainable profitability.
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