PBG (PTBL3) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 rose 8.2% year-over-year, reaching R$2.6 billion, driven by international expansion and strong external market performance, despite challenging domestic demand and increased competition.

• U.S. operations delivered robust growth, with Portobello America revenue up 27.2%, while the Brazilian market faced selectivity and competitive pressure.

• Operational discipline, innovation, and customer focus resulted in higher operating profitability than peers, with financial discipline and capital structure optimization as strategic priorities.

• The external market's share of consolidated revenue rose to 25.9%, with exports and Portobello America as key contributors.

Financial highlights

• 4Q25 net revenue was R$642.4 million, up 1.7% from 4Q24; full-year revenue advanced 8.2%, with gross profit up 7.7% to R$931.9 million and gross margin stable at 35.8%.

• EBITDA for 2025 was R$321.2 million, up 4.2% year-over-year, with a margin of 12.8%; Q4 EBITDA was R$53 million, up 2.2%.

• Net loss for 2025 was R$291.7 million, significantly higher than the prior year, mainly due to higher financial expenses, non-cash accounting effects, and non-recurring items.

• Free cash flow for 2025 reached R$316.0 million, reflecting strong operating cash generation and disciplined capital allocation.

Outlook and guidance

• Expectation for 2026 is continued limited market growth in Brazil due to macroeconomic conditions, with a cautious stance amid high interest rates and competitive pressures.

• U.S. operations are expected to benefit from tariff and geopolitical scenarios, with breakeven anticipated in coming quarters and a positive outlook supported by business maturation.

• Focus remains on margin recovery in premium retail, healthier sales mix in the U.S., and ongoing efforts to optimize capital structure and liquidity.