TIM (TIMS3) Q4 2025 earnings summary

Executive summary

• Achieved all 2025 targets with robust operational and financial performance, including record net income and EBITDA margin levels.

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

• Maintained leadership in 5G coverage and network quality, winning six national awards and expanding to over 1,000 cities.

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

• Recognized for ESG leadership, including three consecutive years on CDP's "A List" and multiple awards for network quality and innovation.

Financial highlights

• Net service revenue grew 5.2% year-over-year; mobile service revenue up 5.4%.

• EBITDA increased 7.5% year-over-year, with margin reaching 51.0%.

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

• Operating cash flow grew 16% year-over-year, margin up to 22.7%.

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

Outlook and guidance

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

• Plans to accelerate broadband and B2B expansion, targeting 6,500 site upgrades by 2027.

• Price adjustments underway in Q1 2026 may temporarily pressure churn and net additions.

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

• CapEx guidance maintained, with ongoing discipline and focus on free cash flow.