Companhia Energética de Minas Gerais – CEMIG

What it is

CEMIG generates, transmits, and distributes electricity through 32 hydroelectric plants (4,434 MW of capacity), two wind farms (71 MW), and 12 solar stations (169 MW), and runs 365,577 miles of distribution lines and 4,865 miles of transmission lines. In plain terms: it makes the power, moves it across the state, and delivers it to homes and businesses — all in one vertically-integrated chain.

CEMIG is responsible for 12% of Brazil’s electricity distribution, making it one of the country’s most important power concessionaires. The group owns or holds stakes in more than 173 companies and 15 consortia, and has roughly 127,000 shareholders in 44 countries.

Who owns it

CEMIG is a mixed-economy, publicly traded company controlled by the Government of the State of Minas Gerais, which holds approximately 51% of the ordinary (voting) shares. The structured data show insiders holding ~51% and institutions a further ~46%, leaving a thin free float — meaning the state is firmly in the chair and cannot be displaced without an act of the legislature.

Any material change in who owns CEMIG requires legislative approval and a state-wide referendum; no such referendum has occurred through mid-2025. The remaining shares trade on B3, the New York Stock Exchange (as ADRs), and the Madrid Latibex, giving international investors access without any realistic prospect of a change of control.

Who runs it

Bernardo Afonso Salomão de Alvarenga serves as President (CEO) of CEMIG and of its principal operating subsidiaries CEMIG Geração e Transmissão S.A. and CEMIG Distribuição S.A., and as Chairman of the board of transmission company Taesa and gas distributor Gasmig.

The company’s finance leadership includes an executive with a degree in Production Engineering from UFRJ and an MBA in Finance from IBMEC, who served as Vice-President of Finance and Strategy at Santander Brasil from October 2021 to December 2023. CEMIG was originally created in 1952 by the then-governor of Minas Gerais, Juscelino Kubitschek — who later became President of Brazil and built Brasília — giving the company an unusually storied political pedigree.

The money, in plain words

Revenue has grown steadily — from R$36.9bn (US$7.2 bn) in 2023 to R$42.8bn (US$8.3bn) in 2025, a rise of 16.0% over two years (our calculation). But the profit picture is uneven: net income peaked at R$7.1bn (US$1.38bn) in 2024 then fell sharply to R$4.9bn (US$0.95bn) in 2025, compressing the net profit margin — the share of each real of sales that becomes profit — from 17.9% to 11.5% (our calculations).

The return on equity of 17.0% is respectable for a regulated utility: for every real shareholders have put in, CEMIG earns back R$0.17 (US$0.03)a year. The price-to-earnings ratio of 9.0× is low by global utility standards, partly reflecting the political-control discount the market attaches to state-run companies.

The dividend yield of 7.8% — nearly R$7.84 (US$2)returned per R$100 (US$19)of share price — makes CEMIG a notable income stock in Brazil’s regulated-utility universe. The company carries net debt of R$18.0bn (US$3.49bn, our calculation), which is manageable relative to its asset base of R$67.0bn (US$13.0bn).

What it is doing now

CEMIG has announced a five-year investment programme of R$44 billion (US$8.5bn) between 2026 and 2030 — its largest capital commitment ever, focused on grid modernisation and renewable capacity. In January 2026, CEMIG’s generation and transmission subsidiary completed the acquisition of Empresa de Transmissão Timóteo-Mesquita S.A. from Grupo Fram Capital for R$30.0 million (US$6 mn), adding a 24-km transmission line and a substation in the Vale do Aço region.

CEMIG has been included in the S&P Global Sustainability Yearbook and the Clean200™, maintains an “A List” classification from CDP, and is recognised as one of the ten most sustainable corporations in Latin America by Corporate Knights. These are not merely badges; for a state-controlled utility with a massive grid to modernise, they matter for access to green financing.

What to watch

• Margin recovery. The 6-percentage-point drop in net margin from 2024 to 2025 is the key unanswered question. Whether it reflects one-off costs or structural pressure on regulated tariffs will determine whether the 2025 profit trough is a floor or a trend.
• Capital spending versus cash. The R$44bn (US$8.5 bn) five-year plan is ambitious — roughly equal to the entire current market cap. Investors will watch whether CEMIG funds it from operations or leans on new debt, which would pressure the already-thin cash position of R$1.9bn (US$368m).
• Political risk. With the state holding a majority of votes, tariff decisions, management appointments, and dividend policy can all bend to electoral priorities. This is the enduring discount baked into the 9× P/E — and the reason any signal of greater commercial autonomy would re-rate the stock quickly.
• Renewable build-out. CEMIG’s solar and wind capacity (240 MW combined) is tiny relative to its 4,434 MW hydro base. Progress on the 2026-2030 plan will reveal whether the green pivot is real or rhetorical.

This is news, not investment advice.