Itaúsa (ITSA4) Q2 2025 earnings summary

Executive summary

• Achieved record recurring net income of R$7.9 billion in 1H25, up 10% year-over-year, with total net income at R$8.0 billion and shareholders' equity reaching R$89.6 billion, a 7% increase.

• Portfolio market value (NAV) rose 24% to R$159.3 billion, outperforming IBOV and S&P benchmarks.

• Share performance outpaced major benchmarks, with a 28% valuation increase and a 24.4% holding discount.

• Capital increase via share subscription was fully subscribed, reinforcing shareholder confidence.

• Dividend yield reached 9.8% with a payout ratio of 36% for 1H25, and total dividends declared were R$2.7 billion, up 47% year-over-year.

Financial highlights

• Itaú Unibanco contributed R$8.0 billion to results, up 10% year-over-year, with a recurring ROE of 21%.

• Non-financial companies contributed R$503 million, a 23% increase, led by Copagaz, NTS, and Alpargatas.

• Alpargatas reported EBITDA of R$399 million (+122%) and net income of R$221 million (+250%).

• Copagaz achieved EBITDA of R$570 million (+19%), and NTS EBITDA reached R$3.7 billion (+12%).

• Net debt reduced by 30% year-over-year to R$587 million; average debt cost at CDI +1.37%.

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.