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 nearly R$3.0 billion, reflecting strong operational execution and disciplined cost management.

• Record normalized net income of R$1,208 million in 3Q25, up 50% year-over-year, driven by strong mobile postpaid growth and operational efficiency.

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

• B2B and IoT verticals, including new partnerships like Vale for Smart Mining, are expanding revenue streams and supporting diversification.

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

Financial highlights

• EBITDA margin reached 51.7% in 3Q25, up 1.3 percentage points year-over-year, with normalized EBITDA at R$3,469 million (+7.2% YoY).

• Net income for the quarter was R$1.2 billion, nearly R$3 billion year-to-date.

• Operational cash flow (EBITDA after lease minus CapEx) was R$1.82 billion in 3Q25 (+4.5% YoY), and R$4.5 billion for nine months.

• Capex totaled R$974 million in 3Q25 (+8.6% YoY), with Capex-to-net revenue at 14.5%.

• Cash and marketable securities reached R$6,529 million at September 2025, up over R$2 billion 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 (TIM Ultrafibra) showing operational recovery, expected to continue improving.

• Continued focus on efficiency initiatives to control costs and leases.