CMIG4: quote, dividends and indicators for CEMIG

Companhia Energética de Minas Gerais – Cemig is a mixed-capital company created in 1952 by the State of Minas Gerais, with the objective of providing power generation, transmission, and distribution infrastructure to support regional economic development. In the decades following its formation, the company implemented its first hydroelectric plants, such as Tronqueiras, Itutinga, and Salto Grande, and structured transmission and distribution operations in the state. Throughout the 1970s and 1980s, its generation fleet was expanded with plants such as São Simão, Emborcação, and other relevant hydroelectric projects, while the company began to develop programs focused on serving low-income populations, environmental protection, and research into alternative energy sources. In the 1980s, the company changed its name to Companhia Energética de Minas Gerais – Cemig and created Gasmig, entering the piped natural gas segment in Minas Gerais.

Starting in the 1990s, Cemig intensified its expansion through partnerships and consortia, participating in the construction of hydroelectric plants with the private sector, such as Igarapava, Porto Estrela, Queimado, and Funil. In 2000, it joined the Dow Jones Sustainability Index, a continuity that reinforces the company’s involvement in international discussions on sustainable corporate practices. In the early 2000s, Cemig’s shares began trading on the New York Stock Exchange (NYSE) and on Latibex in Madrid, expanding its foreign investor base. In 2004, the company unbundled its operations, creating Cemig Geração e Transmissão S.A. (Cemig GT) and Cemig Distribuição S.A. (Cemig D) as wholly owned subsidiaries, while the Cemig holding company began to concentrate the group’s strategic management and corporate control. In the second half of the 2000s, Cemig ramped up its presence in transmission, taking stakes in companies such as TAESA, EATE, ETEP, ENTE, ERTE, and ECTE, and began investing in wind generation and in interests in major generation projects, such as the Santo Antônio consortium and, later, Norte Energia S.A., the concessionaire of the Belo Monte plant.

The current structure of the Cemig group, whose common and preferred shares are traded on B3 under the tickers CMIG3 and CMIG4, is organized around the Cemig H holding and a set of subsidiaries that operate in different links of the energy chain. The main ones are Cemig GT, responsible for generation and transmission activities; Cemig D, the electric power distribution concessionaire in Minas Gerais; Companhia de Gás de Minas Gerais (Gasmig), which operates the piped natural gas network in the state; Sete Lagoas Transmissora de Energia; and Cemig Soluções Inteligentes em Energia S.A. (Cemig SIM), focused on distributed generation, energy efficiency, and energy solutions. The group consolidates stakes in dozens of companies and consortia, with generation, transmission, and trading assets spread across several states, while still maintaining an operating and revenue concentration in Minas Gerais, especially in distribution and gas activities.

In the generation segment, Cemig’s power mix is entirely composed of renewable sources. As of December 31, 2025, considering subsidiaries and joint ventures, installed capacity totaled around 4,800 MW, distributed among 32 hydroelectric plants, 37 solar photovoltaic plants, and 2 wind farms in five Brazilian states (Ceará, Espírito Santo, Minas Gerais, Pará, and Rio de Janeiro). Hydropower accounted for approximately 92.4% of installed capacity, while solar and wind sources represented 6.1% and 1.5%, respectively. Large hydroelectric plants such as Theodomiro Carneiro Santiago, Nova Ponte, Irapé, and Três Marias rank among the company’s main assets and concentrate a significant share of total capacity. Plant availability is monitored by regulatory indicators such as the Availability Factor (FID), and the company has maintained high availability levels at its hydroelectric plants, above 95%, which is relevant for revenue regulation and operating performance within the National Interconnected System.

In transmission, Cemig GT operates and maintains a network of high- and extra-high-voltage transmission lines that form part of the basic grid of the National Interconnected System. In 2025, its own system totaled around 5,066 km of lines at 230 kV, 345 kV, and 500 kV, and 42 substations, representing approximately 2.8% of the SIN’s total line length, according to data from the National Electric System Operator (ONS). In addition to its own assets, the company provides operation and maintenance services for other transmission companies’ substations and line segments, under contracts regulated by the Brazilian Electricity Regulatory Agency (ANEEL). Transmission remuneration is tied to the Allowed Annual Revenue (RAP) and facility availability, which makes the control of outages and compliance with technical standards central factors for this segment’s financial performance. The extension of transmission concessions and compensation for non-depreciated assets are recurring regulatory topics in the company’s recent history.

In distribution, Cemig D holds one of the largest concessions in the country in terms of territorial coverage and number of consumers, serving approximately 97% of the area of the State of Minas Gerais. In 2025, the distribution network totaled around 588,000 kilometers, with a strong presence in both urban and rural areas, and a market of approximately 9.6 million customers, including residential, commercial, industrial, and rural consumers. The distributor operates both in the regulated contracting environment (ACR), supplying energy to captive consumers, and in serving free and special consumers through the use of the distribution system (CUSD). The company also has a significant base of consumers eligible for the low-income social tariff, which reveals intense interaction with sectoral public policies and government subsidies. Distribution revenues are strongly affected by periodic tariff reviews and adjustments defined by ANEEL, which take into account efficient operating costs, investments, losses, and service quality.

Beyond the traditional electricity value chain, Cemig maintains a significant presence in natural gas and energy solutions. Gasmig, almost entirely controlled by Cemig, is the exclusive distributor of piped natural gas in Minas Gerais, with a concession extended until 2053. In 2025, Gasmig distributed around 2.84 million cubic meters per day to more than 100,000 customers in dozens of municipalities, serving industries, commerce, CNG stations, cogeneration projects, and residential units. Expansion of the gas pipeline network and of the segments served is part of a long-term investment plan. Cemig SIM, in turn, created in 2019, operates in distributed photovoltaic generation, energy efficiency projects, cogeneration, and electric mobility, with significant investments in solar plants and the ambition to greatly expand its capacity in the coming years, following the trend toward decentralized generation and the energy transition.

Power trading is another pillar of Cemig’s business model. Through subsidiaries such as Cemig Trading S.A. and Empresa de Serviços de Comercialização de Energia Elétrica S.A. (ESCEE), the group structures and intermediates transactions in the free market, providing power purchase and sale services to free and special consumers, other generators, traders, and distributors. In 2025, Cemig held a significant share in the Brazilian free market, operating in practically all states and with particular relevance in Minas Gerais, São Paulo, and Rio Grande do Sul. The company also offers services such as representation at the Electric Power Trading Chamber (CCEE), consulting on energy risk management, and trading of renewable energy certificates, such as Cemig REC and I-REC, adding environmental attributes to supply contracts. Revenue in this segment derives from trading and service margins and is subject to energy price volatility and the competitive dynamics of the wholesale and retail markets.

Cemig’s activities are strongly influenced by state regulation of the power and natural gas sectors in Brazil. The company depends on concessions, permits, and authorizations granted by the Federal Government, through the Ministry of Mines and Energy, ANEEL, and state agencies in the case of gas. Legal reforms since the 1990s have shaped the separation between generation, transmission, distribution, and trading; the creation of the free contracting environment; the definition of rules for bidding on new projects; and the conditions for extending concessions. Specific legislation, such as Laws 8,987, 9,074, 9,648, 10,848, and 12,783, established parameters for concession contracts, term renewals, asset compensation, and tax incentives for projects in incentivized areas, such as those linked to Sudene. These regulations directly impact the company’s revenue, investment returns, and capacity to expand in its various segments. CMIG3 and CMIG4 shares, traded on B3, largely reflect the market’s perception of the ongoing interaction between Cemig’s business strategies, the regulatory environment, and its operating performance.