TIM (TIMS3) Q3 2025 earnings summary

Executive summary

• Service revenues increased 5.2% year-over-year for the first nine months of 2025, with EBITDA up 6.7% and net income rising 42.2% to R$3.0 billion, reflecting strong operational execution and disciplined cost management.

• Mobile segment, especially postpaid, drove growth, with 415,000 postpaid lines added and postpaid churn at 0.8%.

• Operational cash flow (EBITDA after lease minus CapEx) reached R$4.5 billion in 9M25, expanding by double digits.

• Shareholder returns reinforced through R$1.8 billion in dividends/interest on capital and R$369 million in share repurchases.

• ESG leadership recognized, ranking in the FTSE Russell Diversity & Inclusion Index and receiving ISO 14001 certification.

Financial highlights

• EBITDA margin reached 50.3% for 9M25 and 51.7% in 3Q25, with normalized EBITDA up 7.2% year-over-year.

• Net income for 3Q25 was R$1.2 billion, with normalized EPS at R$0.50, and nearly R$3.0 billion year-to-date.

• Operational cash flow (EBITDA-AL minus CapEx) was R$1.7 billion in Q3 and R$4.5 billion for nine months.

• Capex represented 16.2% of revenues in 9M25, with a Capex-to-net revenue ratio of 14.5% in 3Q25.

• Cash and marketable securities reached R$6.5 billion at September 2025, up 50.7% year-over-year.

Outlook and guidance

• On track to meet full-year 2025 guidance for service revenue, EBITDA, CapEx, operational cash flow, and shareholder remuneration.

• Postpaid mobile expected to maintain strong growth; prepaid to remain stable.

• B2B client base projected to reach about 120 active clients by year-end, with over 20 new strategic customers.

• Broadband segment (Ultrafibra) showing operational recovery, expected to continue improving.

• Guidance for operating free cash flow expansion within the 14%-16% range reaffirmed.