Alpargatas (ALPA4) Q4 2025 earnings summary

Executive summary

• 2025 marked the end of a turnaround and the start of a new growth cycle, with record profitability, improved efficiency, and strong performance in both domestic and international markets.

• International operations returned to growth, with Europe rebounding after two years of decline and the U.S. launching a new distribution partnership with Eastman.

• Brazil saw annual sell-out growth of up to 4.8%, with market share in the grocery channel rising to 78%.

• Double-digit growth in specialized and DTC channels, driven by premiumization and successful marketing investments.

• Employee engagement reached record levels, with a 17 p.p. increase since 2023 and 70% engagement in 2025.

Financial highlights

• Net revenue for 2025 was R$4.6 billion (+11.1% YoY), with gross profit at R$2.4 billion (+34.4% YoY) and net income at R$567.9 million (+428.8% YoY).

• Gross margin reached 52.2% in 2025 (+9.0pp YoY), with Q4 gross margin at 51%–52.2%.

• Adjusted EBITDA for 2025 was R$865.5 million (19.0% margin, +10.4pp YoY); Q4 EBITDA margin expanded to 24%.

• International volume grew 5%, with Europe Q4 sales up 30% and U.S. volume up 300% due to the business model transition.

• Free cash flow to equity was R$12M in 4Q25, with leverage at 0.8x Net Debt/EBITDA.

Outlook and guidance

• Optimistic for 2026, with focus on sustainable growth, further efficiency gains, and premiumization.

• International strategy centers on regaining scale in Europe and leveraging the new U.S. distribution model.

• Investments prioritized for higher returns, with ROIC reaching 15% (+9 p.p. YoY).