Grupo EPM 1Q 2026 Net Income Jumps 68% Year-on-Year On Tigo Sale
Medellin-based multinational electric power and utilities giant Grupo EPM announced May 5 that its first quarter (1Q) 2026 net income rose 68% year-on-year, to COP$2.4 trillion (US$646 million), versus COP$1.4 trillion (US$325 million) in 1Q 2025.
The big boost in profits came mainly from its January 2026 sale of its 50% interest in telecom giant Tigo-UNE to its investment partner Millicom, the latter of which now owns 100% of Tigo as well as 100% of Movistar.
That sale of EPM’s holdings in Tigo-UNE to Millicom generated COP$2.1 trillion (US$568 million) in cash – which, after payoff of debts, generated a net profit for EPM of COP$160 billion (US$43 million), according to the company.
While 1Q 2026 profits improved, revenues as measured in Colombian pesos actually declined 3% year-on-year, to COP$9.1 trillion (US$2.45 billion), versus COP$9.4 trillion (US$2.18 billion) in 1Q 2025.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for 1Q 2026 likewise fell 7% year-on-year, to COP$2.9 trillion (US$780 million), versus COP$2.9 trillion (US$674 million) in 1Q 2025.
“The decrease in revenue was moderate and followed a similar pattern, confirming a challenging environment,” according to EPM.
“In Colombia, the increase in the minimum wage fueled inflation and led to higher interest rates; internationally, geopolitical tensions generated additional pressure on prices, mainly of raw materials, and greater volatility in international financial markets.
“Business diversification continued to be a strategic factor for the financial stability of the EPM Group and the efficiency of resource allocation,” according to the company, which is 100% owned by the City of Medellin.
In total, “40% of EBITDA came from the power generation business, leveraged by efficient hydroelectric and thermal operations,” according to EPM.
Another 39% of EBITDA came from power distribution, while 20% came from water, sewerage, wastewater, and solid waste services. The remaning 3% came form from energy transmission and 1% from natural gas, “offset by a negative 3% in the ‘other’ business segment,” according to EPM.
“This composition of EBITDA achieved in the first quarter of 2026 confirms the importance of a balanced portfolio where businesses in Colombia contribute 82% of EBITDA, Guatemala 7%, Chile 5%, Panama 4%, El Salvador 1%, and Mexico and Bermuda the remaining 1%, allowing us to offset sector variations and respond with resilience and efficiency to changing operating scenarios,” said EPM CEO John Maya Salazar.
As for the company’s debt/EBITDA ratio, “this remained below the limit, while debt service coverage reached 3.05 for the EPM Group . . . demonstreating the group’s ability to meet its financial obligations on time and preserve its long-term sustainability,” according to the company.
