Brava Energia (BRAV3) Q4 2025 earnings summary

Executive summary

• Achieved record annual average production of 81.3 thousand boe/d in 2025, up 46% year-over-year, with Atlanta and Papa-Terra fields delivering best-ever results and strong operational efficiency.

• Net revenue reached US$2.1 billion (R$11.6 billion), up 15% year-over-year, driven by higher offshore production and operational efficiency.

• Adjusted EBITDA grew 29% year-over-year to US$806 million (R$4.5 billion), with margin expanding to 38.8%.

• Lifting costs hit a historic low of US$14.9/boe in 2025, down 15% year-over-year, reflecting efficiency gains.

• Leverage ratio reduced to 2.16x by year-end 2025, marking the third consecutive quarterly decline and reflecting improved cash generation.

Financial highlights

• Net revenue for 2025 was US$2.1 billion (R$11.6 billion), up 15% year-over-year, with production up 46% YoY.

• Adjusted EBITDA reached US$806 million (R$4.5 billion), up 29% year-over-year, with margin expanding to 38.8%.

• Net income for 2025 was R$1.41 billion (US$240 million), reversing the prior year's loss.

• Lifting cost reached a record low of US$14.9/boe, with offshore at US$13.4/boe and onshore at US$17.2/boe.

• Capex for 2025 totaled R$2.83 billion (US$504 million), down 47% year-over-year, focused on offshore and production optimization.

Outlook and guidance

• Entered a new phase focused on production stabilization, value unlocking, and disciplined capital allocation.

• Active hedging strategy in place, covering 21.4 million barrels over 18 months, to protect against oil price volatility.

• Continued focus on reducing leverage, optimizing costs, and maintaining strong free cash flow generation.

• Gradual restart of Potiguar production expected in 1H26, pending regulatory approval.

• No new FID projects planned for 2027; capex expected to decrease as investment cycle ends.