CFE Net Income Falls 43.3% in Q2 2026 Due to Peso Exchange Rate Effect

The Federal Electricity Commission (CFE) reported net income of 48,026 million pesos in the second quarter of 2026, a 43.3% decline from the 84,782 million recorded in the same period of 2025, according to its financial report filed with the Bolsa Mexicana de Valores on July 30.

The contraction did not stem from operational deterioration, but from the exchange rate's impact on the company's foreign-currency debt. Foreign exchange gains fell 63%, from 57,704 million pesos in Q2 2025 to 21,321 million in Q2 2026, as peso appreciation against the dollar reduced the accounting gain CFE records when revaluing its foreign-currency obligations. According to Forbes México, 52% of the company's total debt is denominated in foreign currency, primarily dollars. CFE operates the National Electric System (Sistema Eléctrico Nacional, SEN) and generates 63% of the country's electricity. A decline in imported natural gas prices from the Permian Basin in Texas, which supplies most of the fuel for the SEN's combined-cycle plants, partially benefited the company's operating costs during the quarter.

CFE's operating performance, however, improved in the quarter. Operating profit grew 15.2% year-on-year to 72,158 million pesos, while operating cash flow (EBITDA) reached 119,022 million pesos, the highest level for a second quarter since 2018, as reported by Expansión. Electricity sales remained essentially flat at 244,519 million pesos, with total revenues of 172,570 million, a marginal 1.2% annual decline. The combination of a strong peso and lower natural gas prices reduced the company's operating costs; CFE concentrates its generation in combined-cycle plants fueled by gas flowing south from Texas.

The report confirms that CFE's operations remain solid, but exchange rate volatility will continue to weigh on net results as long as more than half of its debt remains denominated in dollars. The currency factor will also affect the quarterly reports of other public entities with foreign exchange exposure in the coming weeks.

This article was written with artificial intelligence assistance based on verified sources and reviewed by a human editor before publication.