Grupo Casas Bahia (BHIA3) Q4 2025 earnings summary

Executive summary

• Achieved record GMV of R$44.7 billion in 2025, up 8.8% year-over-year, with online channels growing 21.7% in Q4'25 and strong omnichannel execution.

• Reduced net debt by R$3.8 billion (77%), lowering leverage to 0.4x net debt/EBITDA, and completed major debt restructuring, resulting in projected cash savings of R$7.7 billion through 2030.

• Delivered nine consecutive quarters of operational and EBITDA margin improvement, reaching 9.8% in Q4'25 (+1.8 p.p. y/y).

• Free cash flow to firm was R$2.2 billion in 2025, with liquidity position at R$3.4 billion.

• BNPL/credit portfolio grew to R$6.6 billion, with stable delinquency at 8.6%.

Financial highlights

• Net revenue for 2025 was R$29.2 billion (+7.3% y/y); gross profit R$8.9 billion (+6.4% y/y); gross margin at 31.5% in Q4'25.

• Adjusted EBITDA reached R$2.6 billion (+30% y/y), with margin at 8.8% (+1.6 p.p. y/y); Q4'25 adjusted EBITDA was R$866 million (+29% y/y).

• Adjusted net loss for 2025 was R$1.54 billion, impacted by a non-cash deferred tax adjustment of R$1.45 billion in Q4'25.

• SG&A as a percentage of revenue improved by -1.9 p.p. y/y, reflecting operational leverage and expense discipline.

• Free cash flow generation was R$2.2 billion for the year, the highest in recent years.

Outlook and guidance

• Focus for 2026 is on converting operational improvements into positive net profit, with levers including reducing financial expenses, monetizing assets, and operational efficiency.

• CBC 27 program launched to drive transformation over the next two years, targeting further financial and operational gains.

• Expectation of continued market share gains, especially in online and core categories, and leveraging seasonality events like the World Cup for growth.

• Anticipate further SG&A productivity gains through AI and digital initiatives, with no major structural investments required.

• Direct effects from the debt-to-equity conversion expected to become visible in 2026.