CMIG4 after 2Q26: Distribution EBITDA jumps 19% on tariff reset, but trading arbitration and financial costs trim net income

In August 2026, Companhia Energética de Minas Gerais (B3: CMIG4; NYSE: CIG) released 2Q26 consolidated results (reference 30 June 2026). Net operating revenue reached R$ 11.16 billion, up 3.4% year on year, while adjusted EBITDA rose 9.3% to R$ 2.47 billion. Net income nevertheless fell 20.4% to R$ 945 million, and adjusted net income declined 15.5% to R$ 1.12 billion.

The quarter is a useful lesson in Brazilian multi-utility reporting: regulated distribution and transmission can deliver strong operating EBITDA when tariffs reset and loss metrics improve, while energy trading, provisions, and a much heavier financial result can still pull the consolidated bottom line lower. Readers who stop at the EBITDA headline miss the bridge items that separate operating performance from attributable profit.

What the earnings package shows

Figures below follow Cemig's 2Q26 earnings release (consolidated, Brazilian reais):

Management highlighted robust cash generation at the EBITDA level, continued execution of the investment program (distribution networks, substations, transmission), and regulatory outperformance on operating costs in the first half of 2026, while acknowledging pressure from trading and higher leverage.

Cemig D — tariff reset, volumes, and credit losses

Cemig Distribuição (Cemig D) drove much of the operating story. Segment EBITDA rose 19.0% year on year to R$ 1.48 billion in 2Q26 (per segment tables in the release).

Key operating items:

The tariff reset landed late in the quarter, so part of the earnings uplift is timing as well as tariff level. Weaker captive volumes partly offset price, which is typical when industrial demand softens or customers migrate toward free-market contracts.

Cemig GT and Gasmig — generation, wires, and gas

Cemig GT (generation and transmission) posted EBITDA of R$ 480 million, up 15.6% year on year, supported by inflation adjustments on certain transmission revenues and operational performance in the release narrative.

Gasmig reported EBITDA of R$ 206 million, down 15.4%, as gas distribution volume fell 17.0% — partly explained by customer migration to the free market, where regulated margins differ. Customer count still rose 5.9% year on year to 113,057 consumers in 2Q26.

Together, the regulated pillars looked solid; the consolidated picture still depends on how trading and holding-level finance behave.

Trading — arbitration provision and position costs

The trading segment was the main negative swing at consolidated level. Cemig attributed a R$ 383.4 million year-on-year decrease in EBITDA from trading, including:

• Higher costs to close out open positions when purchase prices were elevated in 2Q26
• A R$ 190.6 million provision tied to an arbitral award in proceedings brought by a free-market customer

Adjusted segment EBITDA for trading was deeply negative in the reconciliation tables (roughly −R$ 154 million adjusted in 2Q26 versus a positive adjusted contribution a year earlier, per the release bridge). That single provision is large enough to move consolidated net income even when Cemig D is growing double digits.

Readers comparing Cemig to pure distribution peers should separate recurring regulated EBITDA from merchant/trading volatility — the company discloses both in segment footnotes.

Below EBITDA — financial result and leverage

The net financial result worsened to −R$ 796 million from −R$ 313 million in 2Q25. Cemig linked the move to higher gross debt after new issuances to fund investments, plus accounting treatment changes for monetary restatement of provisions (now largely in financial expense, while provisions remain in operating income).

Balance-sheet highlights:

The release noted R$ 4.6 billion in new debt raising by Cemig D and Cemig GT in the period (including debenture programs), with a large share of maturities pushed beyond the near term. Leverage at 2.58× is manageable for a regulated utility but materially higher than a year ago — which matters when SELIC remains elevated and the financial line already absorbed more than R$ 790 million in the quarter.

Limits of this reading

• Adjusted metrics exclude items such as certain RBSE remeasurements, voluntary dismissal programs, and the trading arbitration provision — always read the reconciliation table before comparing to IFRS net income.
• Tariff adjustment effective late May means 2Q26 only partially reflects the new tariff level; 3Q26 should carry a fuller run-rate.
• Trading and Gasmig volume effects can reverse quickly; they are not the same risk bucket as distribution tariff resets.
• Net debt rose with capex and dividends/interest on capital policy; the release discusses 2028 distribution tariff review as a longer-term regulatory milestone — timing and outcome are uncertain.
• Segment EBITDA and consolidated adjusted EBITDA use company definitions in the release, not a single external standard.

Where to view in the explorer

• CMIG4 — Cemig
• Company list
• Blog

Sources

• Cemig — 2Q26 Results press release (30 Jun 2026 reference), Aug 2026: ri.cemig.com.br
• Cemig — 2Q26 earnings presentation, Aug 2026: ri.cemig.com.br
• CMIG4 on the explorer — CVM filings and company page

Disclaimer

This article is for informational and educational purposes only. It is not investment advice. Adjusted EBITDA, trading provisions, and IFRS net income follow different reconciliations in the release; when in doubt, official CVM filings prevail. Refer to those documents and, if needed, a licensed professional.