CM Hospitalar (VVEO3) Q4 2025 earnings summary

Executive summary

• Operational discipline, integration of acquisitions, and strategic execution in 2025 led to resumed growth, margin expansion, and record cash generation.

• CEO succession completed, with André Clark assuming leadership and ensuring continuity and focus on transformation.

• Completed key strategic projects, improved planning, procurement, and consolidated manufacturing facilities.

• Entered a new phase prioritizing operational discipline, deleveraging, and employee engagement.

Financial highlights

• 4Q25 net revenue grew 6.7% year-over-year to R$ 3,132.9 million, with three consecutive quarters of growth.

• 4Q25 adjusted EBITDA reached R$ 196.0 million (+19.4% YoY), margin 6.3% (+0.7 p.p. YoY); FY2025 adjusted EBITDA R$ 706.3 million (+8.3% YoY), margin 6.1%.

• 4Q25 gross profit was R$ 447.1 million (+15.7% YoY), with gross margin up 1.1 p.p. to 14.3%.

• FY2025 free cash flow reached a record R$ 519.1 million, more than double 2024.

• Net loss persisted in 4Q25 due to high financial expenses, but FY2025 net income was R$ 18.2 million (vs. R$ 1,415.5 million loss in 2024).

Outlook and guidance

• 2026 will focus on operational efficiency, cash generation, capital structure strengthening, and sustainability.

• Further improvements in working capital and profitability targeted, though efficiency gains may be less pronounced than in 2025.

• Ongoing debt renegotiation and liability management, with expectations to conclude in Q2 2026.