TIM (TIMS3) Q2 2025 earnings summary

Executive summary

• Service revenues grew 5.4% year-over-year in the first half of 2025, with strong execution and strategic vision, and net revenues rose 4.7% in 2Q25, driven by mobile and postpaid performance.

• EBITDA increased 6.5% year-over-year in 6M25, with margin expanding to 50.8% in 2Q25, reflecting improved profitability and disciplined cost control.

• Net income surged 25.0% year-over-year in 2Q25, reaching R$976 million, and normalized net income for 6M25 was R$1,786 million, up 37.3%.

• Recognized as the most sustainable Brazilian company, leading the B3 Sustainability Index and using 100% renewable energy.

• Capex focused on 5G expansion, totaling R$882 million in 2Q25, down 4.6% year-over-year.

Financial highlights

• Net revenue reached R$6,600 million in 2Q25 (+4.7% YoY); service revenue up 5.1% YoY; mobile service revenue grew 5.6%.

• Normalized EBITDA was R$3,351 million in 2Q25 (+6.3% YoY), with margin at 50.8% (+0.8 p.p. YoY).

• Normalized net income was R$976 million in 2Q25 (+25.0% YoY); R$1,786 million in 6M25 (+37.3% YoY).

• Capex/Net Revenue at 13.4% in 2Q25; Capex represented 17.1% of revenues in 6M25.

• Cash and marketable securities totaled R$5,474 million at June 2025, up 65.3% year-over-year.

Outlook and guidance

• On track to meet 2025 targets, with continued focus on 5G network expansion, B2B IoT, digital ecosystem, and efficiency programs.

• Capex guidance maintained, with investments prioritized for network infrastructure and digital transformation.

• Nationwide expansion of energy sales partnership with Eletrobras planned by September, targeting up to 2 million B2B customers.

• More marketing campaigns expected in H2 due to seasonality (Father’s Day, Black Friday, Christmas).

• Conservative market view for TIM Ultrafibra, with efficiency plans showing positive signs.