TIM (TIMS3) Q2 2025 earnings summary

Executive summary

• Service revenues grew 5.4% year-over-year in the first half of 2025, driven by mobile and postpaid segments, with strong execution and strategic vision.

• EBITDA increased by 6.5% year-over-year in 6M25, with margin expansion to 49.5%, reflecting improved profitability and disciplined cost control.

• Net income rose 25.0% year-over-year in 2Q25, reflecting robust operational performance and efficiency.

• Operating cash flow posted double-digit growth, supporting increased shareholder distributions.

• Recognized as the most sustainable Brazilian company, topping the B3 Sustainability Index.

Financial highlights

• Q2 total service revenue grew 5.1% year-over-year to R$6,417 million; mobile revenue rose 5.6%.

• Normalized EBITDA margin reached 50.8% in 2Q25, a record for the quarter.

• Operating costs grew 3.2% in 6M25, below the 5.35% inflation rate.

• Capex represented 17.1% of revenues in 6M25, down 1.3 p.p. year-over-year.

• 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 network modernization, B2B IoT, and digital ecosystem expansion.

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

• Nationwide expansion of energy sales to corporate clients planned by September, targeting up to 2 million B2B customers.

• More marketing campaigns expected in the second half due to seasonality.

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