TIM (TIMS3) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 targets with record net income, EBITDA margin, and strong operational performance across business lines, including robust postpaid, B2B, and digital services growth.

• Service revenue grew 5.2% year-on-year, outpacing inflation, supported by disciplined cost management and productivity gains.

• Maintained leadership in 5G coverage, serving over 1,000 cities, winning multiple national awards, and completing major network modernization.

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

• Recognized for ESG leadership, including top CDP climate score and multiple awards for network quality and innovation.

Financial highlights

• Net service revenue grew 5.2% year-on-year, with mobile service revenue up 5.4% and postpaid up 9.5%.

• EBITDA increased 7.5% year-on-year, margin reached 51.0%, and normalized EBITDA margin hit 53.1% in 4Q25.

• Net income rose 27.9% year-on-year to R$1,349 million, with EPS up 39.1%.

• Operating cash flow expanded 16% year-on-year, margin up to 22.7%.

• CapEx totaled R$4,541 million in 2025, with CapEx/Net Revenue at 17.1% and disciplined allocation.

Outlook and guidance

• Strategic focus for 2026 on digital transformation, AI, B2B, broadband, and value-driven innovation.

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

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

• CapEx guidance maintained, with flexibility to anticipate investments when efficiencies arise.

• Targeting 6,500 site upgrades by 2027 and further B2B and IoT expansion.