TIM (TIMS3) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded 2025 targets, with robust service revenue and EBITDA growth, record net income, and margin expansion driven by operational efficiency and disciplined cost management.

• Maintained leadership in 5G coverage, expanding to over 1,000 cities, and recognized for network quality and ESG performance, including three consecutive years on CDP's A List.

• B2B contracted value surpassed BRL 1 billion, with strong growth in agribusiness, logistics, utilities, and mining verticals.

• Broadband revenues returned to growth, with FTTH ARPU stable at R$95.2 and 850,000 customers on high-speed plans.

• Significant shareholder returns through dividends, interest on capital, and accelerated share buybacks.

Financial highlights

• Net/service revenue grew 5.2% year-over-year to R$26.6 billion; mobile service revenue up 5.4%.

• EBITDA increased 7.5% year-over-year to R$13.5 billion, with margin reaching 51.0%.

• Net income rose 36.7% year-over-year to R$4.3 billion, with EPS up 39.1%.

• Operating cash flow grew 16% year-over-year to R$13.4 billion, margin at 22.7%.

• Shareholder remuneration increased 35.7% year-over-year, payout ratio at 139%.

Outlook and guidance

• Entering 2026 focused on value creation in mobile, B2B, and broadband, leveraging AI, digital transformation, and ESG initiatives.

• Price adjustments in Q1 2026 expected to temporarily pressure churn and net additions.

• Tax reform in Brazil expected to be neutral to free cash flow in 2027; no impact in 2026.

• CapEx guidance maintained, with ongoing discipline and flexibility to anticipate investments.

• Expectation of interest rate cuts in 2026 if inflation aligns with targets.