C&A Modas (CEAB3) Q4 2025 earnings summary

Executive summary

• Apparel net revenue in Q4 2025 reached R$2.3 billion, up 0.6% year-over-year, and R$7.1 billion for 2025, up 9.2% year-over-year.

• Beauty segment net revenue grew 22.6% in Q4 2025 and 46% for the year, becoming a key growth driver.

• Adjusted net income for Q4 2025 was R$269.8 million, up 7.9% year-over-year; full-year adjusted net income reached R$470.7 million, up 57.5%.

• Free cash flow for Q4 2025 was R$297.4 million; full-year adjusted free cash flow was R$843.8 million, up 29.4% year-over-year.

• Net cash position at year-end was R$83.7 million, with ROIC reaching 21.8%, up 5.5 percentage points year-over-year.

Financial highlights

• Full-year apparel net revenue rose 9.2% to R$7.1 billion.

• Merchandise gross margin improved by 1.6 percentage points in Q4 2025, reaching 56.2%; for the year, it was up 1.7 points.

• Adjusted EBITDA for the year was R$976 million, up 10.7%, with a 0.7 percentage point margin expansion.

• CapEx for 2025 totaled R$546 million, up 51.8% year-over-year.

• Consolidated net revenue for 2025 was R$7.98 billion, up 4.5% year-over-year.

Outlook and guidance

• Q1 2026 expected to show improvement over Q4 2025, with normalization of assortment and steady gross margin.

• Targeting 20-25 store renovations and 10-15 new store openings in 2026, focusing on Energia model for higher productivity.

• CapEx expected to increase by 15%-20% in 2026.

• Continued focus on omni-channel journey, digital transformation, and new store formats.

• Minimal impact expected from recent tax reforms and regulatory changes; early adoption of new sustainability standards planned for 2026.