Companhia Brasileira de Alumínio (CBAV3) Q4 2025 earnings summary

Executive summary

• Aluminum sales volume reached 128,000 tons in 4Q25, led by the primary segment, with operational stability and full furnace capacity.

• Pro forma Adjusted EBITDA was R$321 million, up 37% sequentially after neutralizing a R$64 million non-recurring CapEx to OpEx reclassification.

• Votorantim agreed to sell its controlling stake to Chalco and Rio Tinto, pending regulatory approval.

• Participation at COP30 highlighted aluminum's role in the energy transition and low-carbon economy.

• Progress in operational competitiveness, renewable energy expansion, and ESG initiatives, including acquisition of Serra do Tigre Wind Complex.

Financial highlights

• Net revenue was R$2.2 billion in 4Q25, down 4% year-over-year and 3% sequentially, mainly due to hedge accounting and lower energy generation.

• Adjusted EBITDA for 4Q25 was R$257 million; pro forma Adjusted EBITDA was R$321 million, up 37% sequentially.

• Cash generation reached R$168 million, mainly from working capital divestment and inventory reduction.

• Net debt remained stable at R$3.3 billion, with leverage at 2.97x and average debt term of 5.2 years at 5.8% USD cost.

• Net loss of R$164 million in 4Q25, compared to a loss of R$56 million in 4Q24 and net income of R$131 million in 3Q25.

Outlook and guidance

• Cost levels for 2026 expected to remain stable, with ongoing global uncertainties and normal power seasonality.

• Operational recovery and renewable energy expansion are expected to support margin improvement and cost competitiveness.

• Leverage targeted below 2x net debt/EBITDA by end of 2025, prioritizing deleveraging.

• Positive commercial perspectives for early 2026, especially in domestic markets.

• Pending change in control may bring new strategic direction post-transaction approval.