CM Hospitalar (VVEO3) Q4 2025 earnings summary

Executive summary

• 2025 marked a shift to operational integration, margin improvement, cost control, process simplification, and record cash generation, with visible improvements in gross margin, expense control, cash cycle, and financial deleveraging.

• CEO succession was completed, ensuring continuity and a focus on operational transformation, discipline, and sustainable cash generation.

• Strategic selectivity in contracts and commercial execution led to stable annual revenue, margin expansion, and improved profitability.

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

• Entering a new phase prioritizing deleveraging, employee engagement, and long-term value creation.

Financial highlights

• Net revenue for 2025 was R$ 11,566.9 million, stable year-over-year (-0.1%), with 4Q25 net revenue up 6.7% to R$ 3,132.9 million.

• Gross profit reached R$ 1,669.4 million (+6.3% YoY), with gross margin expanding by 1.1 p.p. in Q4 to 14.3%.

• Adjusted EBITDA for 2025 was R$ 706.3 million (+8.3% YoY), with margin rising to 6.1% (+0.5 p.p.); 4Q25 Adjusted EBITDA was R$ 196.0 million (+19.4% YoY), margin 6.3%.

• Net income was R$ 18.2 million, reversing a net loss of R$ 1,415.5 million in 2024; adjusted net loss was R$ 78.5 million, a 13.2% improvement.

• Free cash flow reached a record R$ 519.1 million, more than double the previous year.

Outlook and guidance

• 2026 will focus on operational efficiency, cash generation, deleveraging, and selective growth, with further improvements in working capital and profitability targeted.

• Emphasis on process simplification, system consolidation, talent development, and risk management to drive long-term value.

• Debt renegotiation and liability management ongoing, with expectations to conclude in Q2 2026.