Itaúsa (ITSA4) Q2 2025 earnings summary

Executive summary

• Achieved record net income of R$8.0 billion in 1H25, up 10% year-over-year, with recurring net income at R$7.9 billion (+10%), and R$4.1 billion in 2Q25 (+8% YoY); portfolio market value reached R$159.3 billion, up 24%, outperforming IBOV.

• Shareholders' equity reached R$89.6 billion, a 7% increase from June 2024.

• ITSA4 shares outperformed major benchmarks over 1, 5, and 10 years, with a 28% valuation over the period.

• Capital increase with 100% subscription completed, reinforcing shareholder confidence and supporting liability management.

• Dividend yield reached 9.8% with a payout ratio of 36% for 1H25, and total shareholder return was 28.7% for the year ended June 2025.

Financial highlights

• Itaú Unibanco contributed R$8.072 billion to results in 1H25 (+10% YoY), with recurring ROE at 21%.

• Non-financial companies contributed R$503 million in net income (+23% YoY), led by Copagaz, NTS, and Alpargatas.

• Alpargatas reported EBITDA of R$399 million (+122%) and net income up 219%; Motiva and Copa Energia also posted strong EBITDA and net income growth.

• Dividend and JCP payments totaled R$2.7 billion in 1H25 (+47% YoY), with R$2.3 billion paid as IOC.

• Recurring EPS reached R$0.75991 in 1H25 (+10% YoY).

Outlook and guidance

• Management remains focused on liability management, capital structure strengthening, and value creation for shareholders.

• Fiscal inefficiencies are set to end by 2027, improving cash flow and enabling higher dividend distributions.

• No major disinvestments planned; focus remains on increasing stakes in current portfolio companies and exploring new sectors like agri-business if suitable opportunities arise.

• Macroeconomic caution remains due to global uncertainties and high domestic interest rates.