By Brazil Stock Guide – Brazil’s corporate earnings in the fourth quarter of 2025 showed slower growth and increasing dispersion across sectors, with headline figures affected by large losses at a small number of companies, including petrochemical producer Braskem.
Aggregate revenue rose 5.1% year-on-year to R$923.9 billion, while EBITDA increased 4.9% to R$214.6 billion, according to a first read by BTG Pactual. Net income, however, declined, reflecting weaker margin expansion and financial impacts across parts of the market.
The headline numbers were influenced by Petrobras, Vale and Braskem, which together account for a significant share of Brazil’s listed universe and are more exposed to commodity cycles, pricing volatility and foreign exchange movements.
Braskem reported a net loss of about R$10 billion, largely driven by non-cash items, including the reversal of deferred tax assets and financial expenses linked to currency fluctuations and debt exposure.
Excluding Petrobras, Vale and Braskem, underlying results appear more stable.
In that universe, revenue grew 5.4% and EBITDA expanded at a similar pace, while net income declined 6.4% year-on-year. The gap between operating performance and bottom-line results reflects higher financial costs and limited margin expansion.
Companies focused on the domestic economy showed stronger performance.
Revenue for domestic-oriented firms rose 6.2%, EBITDA increased 6.8% and net income grew 5.4%, supported by resilient demand in key segments.
Even so, growth slowed compared with earlier quarters. Revenue expansion among these companies had reached double-digit levels earlier in 2025 before decelerating to mid-single digits in 4Q25.
The shift was also visible in qualitative indicators.
The share of companies reporting results above expectations increased slightly from a year earlier but declined from the previous quarter. At the same time, the proportion of weaker results fell year-on-year but rose sequentially, suggesting a more mixed earnings season.
Performance varied significantly across sectors.
Real estate was among the strongest performers. Revenue increased 21.7%, EBITDA rose 30.4% and net income grew 31.9% year-on-year, supported by project execution and continued demand in lower-income housing.
Companies such as Cyrela reported revenue growth close to 30%, while regional developers like Moura Dubeux posted even higher increases, reflecting strong recognition of ongoing projects.
Infrastructure companies also reported solid results. Revenue rose 12.8% and EBITDA increased 25.9%, supported by tariff adjustments and operating leverage. Concession operators such as Ecorodovias and Motiva delivered double-digit EBITDA growth and high margins.
Retail companies showed a more mixed performance. Revenue grew 7.9% and EBITDA increased 1.1%, but net income rose nearly 96%, reflecting margin recovery and cost control measures rather than strong top-line acceleration.
Companies such as Natura reported improved adjusted profitability, although reported earnings remained affected by non-recurring items.
Healthcare companies also posted solid results. Revenue rose 10.8% and EBITDA increased 21.7%, with net income growth supported by operational improvements and normalization effects.
Hypera, for example, reported a sharp increase in net income, reflecting working capital improvements and stronger execution.
Utilities and telecom companies showed stable performance. Utilities reported revenue growth of 4.5% and EBITDA up 12.8%, while telecom companies posted revenue growth of 6.6% and stronger gains in profitability, supported by stable demand and pricing structures.
Technology companies, although smaller in scale, delivered consistent results, with growth in EBITDA and net income and no major negative surprises in the period.
Cyclical sectors faced more pressure.
Capital goods companies reported declines across key metrics, with revenue down 1.6%, EBITDA falling 11.9% and net income declining 15.1%, reflecting weaker demand and lower operating leverage in a high interest rate environment.
Pulp and paper companies were affected by lower global prices and currency movements. Revenue declined 5.2% and EBITDA fell 9.4%, despite operational improvements in some cases.
Suzano, for instance, reported stable operational performance, but results were affected by pricing and foreign exchange dynamics.
Agribusiness companies reported revenue growth of 6.1%, but EBITDA declined 24%, indicating margin compression. Net income increased in some cases, partly due to non-operational factors.
Food and beverage companies showed a similar trend. Revenue rose 5.3%, supported by pricing and volumes, but EBITDA declined 8% and net income fell 9.9%, suggesting pressure on margins.
The commodities segment remained volatile.
Revenue and EBITDA showed modest growth overall, but net income was significantly affected by foreign exchange movements and financial expenses, widening the gap between operational and reported performance.
Even excluding Braskem, earnings in commodity-linked sectors remained sensitive to global demand, pricing cycles and currency fluctuations. Overall, the 4Q25 earnings season suggests that revenue growth continues, but profitability is under pressure and performance is becoming more uneven across sectors.
The data also indicates that domestic demand remains relatively resilient, while sectors exposed to global cycles and financial conditions face greater volatility. The results point to a more selective environment, with outcomes increasingly dependent on cost control, pricing discipline and balance sheet management.