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Companhia Energetica Minas Gerais (MX:CIGN)
:CIGN
Mexico Market
EarningsQ2 2026 Earnings Report

Companhia Energetica Minas Gerais (CIGN) Q2 2026 Earnings Report

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MX:CIGN Q2 2026 EPS Results

Actual EPS$1.10
Consensus EPS$0.81
Beat/MissBeat by +$0.29
One Year Ago EPS$1.35

MX:CIGN Q2 2026 Revenue Results

Actual Revenue$38.12B
Expected Revenue$31.30B
Beat/MissBeat by +$6.81B
YoY Revenue Growth+16.01%

Earnings Announcement Details

QuarterQ2 2026
Date08/13/2026
TimeAfter Close
Conference CallThursday, August 13, 2026
MX:CIGN Upcoming Earnings
Companhia Energetica Minas Gerais's next earnings date is estimated for November 12, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

MX:CIGN Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Aug 13, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented numerous operational and financial positives: recurring EBITDA and net income growth, disciplined and on-track investments (BRL 3.3 billion in H1 toward a BRL 6.7 billion plan), robust funding (BRL 4.6 billion), improved distribution quality metrics, strong transmission and generation results, and a solid credit profile. The main negatives were concentrated in the trading segment (negative recurring EBITDA of -BRL 180 million and a BRL 191 million provision), higher consolidated costs (+15.5%) related to investment and seasonal effects, volume declines in some segments (captive market down 3.8%, Gasmig volume -17%), and increased financial expenses from recent funding. Management expects trading and leverage dynamics to improve after position settlement and the 2028 tariff review. Overall, the positives (broad-based operational strength, investment progress, cash generation, and quality metrics) outweigh the near-term negatives focused in trading and financing costs.
Company Guidance
Management reiterated a disciplined, investment-led guidance: a BRL 6.7 billion 2026 capex plan with BRL 3.3 billion (49%) spent in H1 — including BRL 2.6 billion in distribution, BRL 275 million in generation & transmission and BRL 227 million in Gasmig (BRL 92 million for the Midwest project; 33.5 km built) — supported by BRL 4.6 billion of funding in Q2; operating cash in H1 was ~BRL 4 billion (annualized ~BRL 8 billion) and quarterly operating performance/EBITDA was BRL 2.5 billion. They expect a positive tariff review in 2028 (citing >BRL 22 billion in the review cycle), implemented a 6.5% average tariff adjustment (4.9% Portion B), and maintain a 50% minimum payout (interest on capital BRL 631 million; BRL 0.22/share). Near-term: consolidated recurring EBITDA +9.3% YoY, Cemig D EBITDA +21% YoY, trading recurring EBITDA -BRL 180 million with a BRL 191 million provision, ECL reversal +BRL 232 million, additional RAP +BRL 36 million, transmission EBITDA +50% to BRL 190 million, leverage 2.58 (ratings AAA/AA+), and no budget change for El Niño; trading is expected to improve in H2 and materially in 2028 (management cited ~BRL 1–1.8 billion).
Strong Quarterly Operating Performance
Operating performance of BRL 2.5 billion in the quarter with recurring EBITDA growth of 9.3% year-over-year (consolidated). Consolidated net income increased 15.6% year-over-year.
Robust Investment Program on Track
Planned 2026 CapEx of BRL 6.7 billion with BRL 3.3 billion invested in the first six months (49% of plan). Quarterly CapEx ~BRL 1.8 billion; Distribution invested BRL 2.6 billion in H1; Generation BRL 275 million; Gasmig BRL 227 million (including 33.5 km of network built).
Strong Funding and Cash Generation
Funding of BRL 4.6 billion in the quarter to support investments. Operating cash generation close to BRL 4 billion in H1 (implying ~BRL 8 billion annualized).
Distribution Business Performance and Quality Improvements
Cemig D EBITDA up 21% vs 2Q25. Tariff adjustment with an average 6.5% impact to consumers (4.9% correction in portion B). Residential consumption up 2.7%; Distribution OPEX BRL 416 million below regulatory limit. Quality indicators improved: FEC 8.43 (below regulatory limit) and FEC (frequency) 4.86 vs regulatory limit 5.37.
Transmission and Generation Upside
Transmission EBITDA and recurring net income increased ~50% vs 2025 (recurring net income BRL 190 million vs BRL 120 million). Generation EBITDA up 13.3% and recurring net income up 3.6% year-over-year; average GSF improved, supporting higher generation revenue. Additional RAP revenue of BRL 36 million from concluded transmission investments.
Positive One-off and Non-cash Adjustments
Reversal of expected credit losses (ECL) generated a BRL 232 million positive effect in the quarter. Some provisions (e.g., BRL 191 million arbitration provision) are non-cash at present.
Credit Profile and Leverage Management
High-quality ratings maintained (AAA from two agencies and AA+ from S&P Global). Leverage at 2.58x in 2Q26, with management guidance that leverage may rise toward 2027 and decline after the 2028 tariff review.
Clear Strategic Focus and Dividend Policy
Management reiterates disciplined capital allocation prioritizing regulated businesses and distribution investments. Bylaws set minimum mandatory dividends of 50% of net income; interest on capital paid BRL 631 million (BRL 0.22 per share) this quarter.

MX:CIGN Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Nov 12, 2026
2026 (Q3)
0.81 / -
1.036
Aug 13, 2026
2026 (Q2)
0.81 / 1.10
1.347-17.95% (-0.24)
2026 (Q1)
0.86 / 1.16
1.1054.69% (+0.05)
2025 (Q4)
0.93 / 2.30
1.43360.24% (+0.86)
2025 (Q3)
1.14 / 1.04
3.315-68.75% (-2.28)
2025 (Q2)
0.90 / 1.35
1.778-24.27% (-0.43)
2025 (Q1)
0.85 / 1.10
1.278-13.51% (-0.17)
2024 (Q4)
1.07 / 1.43
2.227-35.66% (-0.79)
2024 (Q3)
2.28 / 3.31
1.364143.04% (+1.95)
2024 (Q2)
1.74 / 1.78
1.4522.62% (+0.33)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed