Itaúsa (ITSA4) Q4 2025 earnings summary

Executive summary

• Recurring net income reached R$16.5 billion in 2025, up 11% year-over-year, marking a record annual profit driven by strong investee performance and disciplined capital allocation.

• Dividend payout totaled R$11.9 billion, a 24% increase, with a 76% payout ratio and a 14.7% dividend yield, among the highest on B3.

• Total shareholder return was 59.4%, significantly outperforming the Ibovespa and other benchmarks, with ITSA4 shares delivering a 59.4% return over 12 months and 474.2% over 10 years.

• Portfolio market value reached R$209.9 billion, up 66% year-over-year, with a 23.8% discount to NAV.

• Recognized for governance, sustainability, and transparency, maintaining presence in major sustainability indices and gender equity in leadership.

Financial highlights

• Consolidated net income attributable to controlling shareholders was R$16.487 billion, up 12% from 2024.

• Net debt reduced to R$0.3 billion, a 67% decrease from December 2024, with gross debt at R$3.2 billion and average maturity extended to 7.1 years.

• Financial sector investees contributed R$16.7 billion to net income, up 10% year-over-year; non-financial sector contributed R$1.1 billion, up 42%.

• Administrative expenses remained flat year-over-year, despite inflation above 4%.

• Financial result stable, with interest expenses dropping due to liability management and cash profitability at R$441 million.

Outlook and guidance

• Management expects continued resilience and growth in 2026, despite ongoing macroeconomic uncertainties, high interest rates, and political risks.

• Brazilian GDP projected to grow 2.3% in 2025 and 1.9% in 2026; Selic rate expected to decrease to 12.25% in 2026; inflation forecasted at 4.3% in 2025 and 3.8% in 2026.

• Anticipates further reduction in tax expenses due to the end of PIS/COFINS and elimination of JCP taxation from 2027, improving fiscal efficiency.

• Ready for a new investment cycle if macroeconomic conditions improve, with flexibility to leverage or disinvest as opportunities arise.

• Ongoing integration of sustainability into portfolio management and risk frameworks.