MEXICO · STATE POWER FIRM
Key Facts
- The country Mexico is Latin America’s second-largest economy, and its state-owned power company CFE runs the national grid.
- Why it matters A large share of the company’s debt is in dollars, so US bondholders and energy investors feel every move in the peso.
- Why now The third-quarter results were filed with the Mexican stock exchange and published on Thursday 29 October 2026.
- What happened A net loss of 23,310 million pesos (US$1.24 billion) replaced a profit of 56,416 million pesos (US$3.00 billion) a year earlier, as a foreign-exchange loss on foreign-currency debt replaced a gain.
- The numbers Total financial debt is about 501,300 million pesos (US$26.67 billion), up 2.9% in a year, while cash rose 30% since December to 190,229 million pesos (US$10.12 billion).
- What it means for you US holders of CFE dollar bonds face a profit line that swings with the peso, even as operating margins stay above 30%.
- Still open How much of the exchange-rate loss the company’s currency swaps offset is not yet clear.
- Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
In Plain English
CFE is the Comisión Federal de Electricidad, the Mexican state company that generates and sells electricity and runs the national grid. EBITDA means earnings before interest, taxes, depreciation and amortization, a common measure of operating profit.
A currency swap is a contract that fixes the peso cost of a dollar payment in advance. Labor obligations are the pensions and other benefits CFE owes to its current and retired workers.
Mexico’s state power company, the Comisión Federal de Electricidad (CFE), posted a net loss of 23,310 million pesos (US$1.24 billion) for the third quarter of 2026, against a profit of 56,416 million pesos (US$3.00 billion) a year earlier. Mexican media carried the figures on Thursday 29 October 2026 from CFE’s quarterly financial report filed with the Mexican stock exchange.
The swing is mainly accounting, because a loss on revaluing foreign-currency debt replaced last year’s gain, and CFE says the effect is not an equivalent cash outflow. For US investors the point is that total financial debt is about 501,300 million pesos (US$26.67 billion), up 2.9% from a year earlier, and a large share of it is in dollars.
The Quarter Swings to a Loss
Peso amounts here convert at the Banxico FIX rate of 18.7962 pesos per US dollar for Friday 30 October 2026, and nine-month net profit was 24,313 million pesos (US$1.29 billion), down 80.6% from 125,106 million pesos (US$6.66 billion). Media reports put third-quarter revenue at 186,231 million pesos (US$9.91 billion), about 1% higher, while nine-month total revenue was 518,460 million pesos (US$27.58 billion), about 1% lower.
El Financiero puts third-quarter operating income at 18,354 million pesos (US$0.98 billion), down 53%, against net financial costs of 39,069 million pesos (US$2.08 billion), figures that match the nine-month totals less the first-half totals in tables by the think tank IMCO. The result follows a second quarter in which profit fell as the peso weakened, covered in CFE Profit Drops 43% as a Weak Peso Hits Mexico’s Utility.
Why the Peso Matters
El Cronista México, reading CFE’s report, put the third-quarter exchange-rate loss at 20,033 million pesos (US$1.07 billion), after a nine-month foreign-exchange result that fell from a gain of 96,946 million pesos (US$5.16 billion) in 2025 to 1,287 million pesos (US$68 million). The same outlet says 50.4% of CFE’s debt is denominated in dollars while most of its revenue is in pesos.
CFE describes the effect as accounting in nature, saying it “no representa una salida equivalente de efectivo,” which means it does not represent an equivalent cash outflow. According to El Cronista México, the company also held currency swaps worth 213,998 million pesos (US$11.39 billion) at the end of the quarter to hedge this risk.
CFE’s September sale of local peso bonds is covered in CFE Raises US$1.08 Billion in a Single Day in Mexico. The sale was in pesos, while a large share of the company’s total debt remains in dollars.
Debt Rises While Cash Grows
Total financial debt stood at about 501,300 million pesos (US$26.67 billion) at 30 September, up 2.9% from 487,300 million pesos (US$25.93 billion) a year earlier, according to IMCO, a Mexican think tank that reads CFE’s quarterly filings. Long-term debt was 422,028 million pesos (US$22.45 billion), up 5.47% from the end of 2025, while short-term debt fell 4.3% to 79,288 million pesos (US$4.22 billion).
Cash and equivalents rose 30% from the end of 2025 to 190,229 million pesos (US$10.12 billion), according to CFE’s statement, while IMCO counts long-term labor obligations up 25.7% to 555,600 million pesos (US$29.56 billion). The company says its operations and lower financing costs let it meet its obligations and keep the investment planned in its 2026-2030 development program, which is covered in Mexico’s State Power Firm Charts US$39.8 Billion Power Expansion.
Operations Stay Profitable
For the first nine months, CFE’s EBITDA reached 164,128 million pesos (US$8.73 billion), a margin of 31.7% and the sixth straight quarter above 30%, and operating income was 90,511 million pesos (US$4.82 billion), a margin of 17.5%. CFE says its energy marketing grew 3.4% and its energy and fuel costs fell 6.3%, while IMCO shows energy-sale revenue down 1.1%.
Total costs rose 1.3%, mainly because of an actuarial update of labor obligations and higher pay and benefits, while interest expense fell 6.8% and other net financial expenses fell 27.5%. Proceso adds that CFE uses mainly natural gas to generate power, so gas prices that follow market indices weigh on its costs, especially at combined-cycle plants.
What It Means for You
US holders of CFE’s dollar bonds and investors in Mexican utilities face a company whose reported profit swings with the peso even as its operations earn a 31.7% EBITDA margin. A large share of CFE’s debt is in dollars, so a weaker peso raises its peso value, while the currency swaps that El Cronista México puts at 213,998 million pesos (US$11.39 billion) are meant to hedge that risk.
For US companies with Mexican factories, CFE’s finances shape grid investment, and the company says it will keep the spending planned in its 2026-2030 program. Further context sits on the Mexico coverage hub, and the next quarterly result will show whether the peso keeps driving CFE’s reported profit.
What Is Not Known
It is not clear how much of the 20,033 million peso (US$1.07 billion) exchange-rate loss the currency swaps offset. It is also unclear how much of the rise in debt reflects new borrowing rather than the peso value of dollar debt.
Whether the peso keeps weakening in the fourth quarter, which would add to the exchange-rate loss on dollar debt, is open. It is also unclear whether revenue, down about 1% in nine months, will recover.
Frequently Asked Questions
What is CFE?
CFE is the Comisión Federal de Electricidad, Mexico’s state-owned power company, which generates and sells electricity and runs the national grid. It files quarterly financial reports with the Mexican stock exchange.
How much did CFE lose in the third quarter of 2026?
CFE posted a net loss of 23,310 million pesos (US$1.24 billion) for the quarter, against a profit of 56,416 million pesos (US$3.00 billion) a year earlier. For the first nine months it still earned 24,313 million pesos (US$1.29 billion).
Why did CFE post a loss?
A loss on revaluing foreign-currency debt replaced last year’s gain, with El Cronista México putting the third-quarter exchange-rate loss at 20,033 million pesos (US$1.07 billion). CFE says the effect is accounting and not an equivalent cash outflow.
How much debt does CFE have?
Total financial debt was about 501,300 million pesos (US$26.67 billion) at 30 September, up 2.9% from a year earlier. About 50.4% of it is denominated in dollars, according to El Cronista México.
Is CFE still profitable?
On an operating basis yes, with nine-month EBITDA of 164,128 million pesos (US$8.73 billion) and a 31.7% margin. The net result turned negative in the third quarter as financial costs, including the exchange-rate loss, exceeded operating income.
Sources: Contralínea, CFE nine-month statement, 29 October 2026; Excélsior, CFE financial and operating results, 30 October 2026; El Financiero, 29 October 2026; Infobae México, 29 October 2026; Proceso, 29 October 2026; El Cronista México, 29 October 2026; Energy21, 29 October 2026; IMCO, CFE En la Mira, third quarter 2026, 30 October 2026; IMCO, CFE En la Mira, second quarter 2026, July 2026; Banco de México, FIX exchange rate, 30 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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