Cemig disclosed its third‑quarter 2025 results on November 14, 2025, reporting net profit of R$796.7 million, a 76% decline from R$3,280.2 million in Q3 2024. Adjusted EBITDA fell to R$1.50 billion from R$4.958 billion a year earlier, while revenue rose 4.6% to R$10.62 billion, surpassing the consensus estimate of R$9.28 billion.
Revenue growth was driven by a modest increase in the distribution segment, offset by a 4.4% year‑on‑year decline in total energy distribution volumes as customers shift to distributed generation and the free market. The trading segment also contributed to top‑line growth, but higher trading and distribution costs eroded profitability.
EBITDA margin contracted sharply to 14.1% from 48.9% a year earlier, reflecting higher energy‑trading expenses, increased distribution costs, and the volume decline in distribution. Net income missed the consensus estimate of R$1.01 billion by R$213.3 million, a miss that investors cited as the primary driver of the pre‑market decline.
CEO Reynaldo Passanezi Filho said the company remains resilient, noting that “the quarter presented more difficult news” but that the firm’s investment strategy and renewable‑energy focus are on track. CFO Andrea de Almeida highlighted continued capital‑expenditure of R$4.7 billion in the first nine months of 2025, a 17% increase from 2024, and emphasized the importance of maintaining a low leverage ratio of 1.76x net debt to adjusted EBITDA.
Shares fell more than 3% in pre‑market trading on November 14, a reaction largely driven by the net‑income miss and the steep margin compression. Analysts pointed to the sharp decline in profitability metrics as the key concern, despite the revenue beat and the company’s AAA credit rating.
Cemig’s guidance for the remainder of 2025 remains unchanged, with management expressing cautious optimism about operational resilience and growth opportunities in renewable energy. The company plans to keep debt at safe levels while continuing to invest in digital infrastructure and energy‑trading capabilities.
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