Grupo Casas Bahia (BHIA3) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated GMV of R$44.7 billion in 2025, up 8.8% year-over-year, with online channels growing 21.7% in Q4 and brick-and-mortar up 6.5%.

• Reduced net debt by R$3.8 billion (77%) and gross debt by R$3.4 billion, lowering leverage to 0.4x net debt/EBITDA from 1.9x.

• Generated R$2.2 billion in free cash flow for 2025, with liquidity of R$3.4 billion at year-end.

• Adjusted EBITDA reached R$2.6 billion (8.8% margin), with nine consecutive quarters of margin improvement.

• BNPL/credit portfolio grew 7% to R$6.6 billion, with stable delinquency rates at 8.6%.

Financial highlights

• Net revenue for 2025 was R$29.2 billion (+7.3% y/y); gross profit R$8.9 billion (30.5% margin).

• Adjusted EBITDA margin expanded by 1.6 p.p. to 8.8% year-over-year; EBIT margin improved to 4.6%.

• Net loss for the year was R$2.988 billion, mainly due to a non-recurring deferred tax provision of R$1.45 billion.

• SG&A as a percentage of revenue improved by 1.9 p.p. year-over-year.

• Free cash flow to firm was R$2.2 billion in 2025, the highest in recent years.

Outlook and guidance

• Focus for 2026 is on converting operational improvements into positive net profit, with levers including reduced financial expenses, asset monetization, and operational efficiency.

• Management expects continued vigilance amid global uncertainties and high interest rates, with gradual rate declines anticipated.

• Strategic emphasis on core categories, credit expansion, omnichannel growth, and productivity gains from AI and digital investments.

• Expecting significant growth in the screen category (almost 50%) due to the World Cup, with seasonality impacting Q2 and Q3.