Companhia Brasileira de Alumínio (CBAV3) Q3 2025 earnings summary

Executive summary

• Net revenue for the nine months ended September 30, 2025, reached R$6.59 billion, up from R$5.89 billion year-over-year, with consolidated net profit of R$393 million versus a loss of R$17 million in the prior period.

• Operational and financial performance improved in 3Q25, with normalized aluminum production post-refinery maintenance and efficiency gains driving results.

• Acquisition and integration of wind power assets secured 60 aMW for aluminum production, diversifying the energy matrix and reinforcing the renewable energy strategy.

• ESG initiatives advanced, with a 74/100 S&P Global CSA score and continued inclusion in the IDIVERSA B3 index for diversity, equity, and inclusion.

• Debt profile improved through second debenture issuance, early settlements, and refinancing, reducing average cost and extending maturity.

Financial highlights

• Net revenue increased 11.9% year-over-year to R$6.59 billion, driven by higher sales in primary and processed aluminum, recycling, and energy segments.

• Adjusted EBITDA for the nine months was R$853 million (12.94% margin), while 3Q25 EBITDA was R$234 million (10% margin), down year-over-year but up sequentially.

• Net income was R$393 million for the nine months and R$131 million in 3Q25, up 51% year-over-year.

• Leverage (Net Debt/EBITDA) improved to 2.45x in September 2025.

• Free cash flow improved, with positive working capital and operating cash flow of R$370 million for the period.

Outlook and guidance

• Aluminum demand outlook remains favorable, with expected consumption growth supporting prices.

• Maintenance capex is expected to remain concentrated in the next quarter due to ongoing alumina refinery maintenance.

• Surplus energy from new wind assets may be available for commercialization, subject to market prices.

• Management is monitoring the impact of increased U.S. aluminum tariffs, which affected 2% of total revenue, and is adopting mitigation measures.