Brava Energia (BRAV3) Q4 2025 earnings summary

Executive summary

• Achieved record annual average production of over 81,000 boe/d in 2025, up 46% year-over-year, driven by operational efficiency in Atlanta and Papa-Terra fields.

• Net revenues reached US$2.1 billion in 2025, up as much as 15% year-over-year, despite a 14% drop in Brent prices.

• Adjusted EBITDA rose 21% to US$806 million, with margin expanding to 39%.

• Lifting costs hit a historic low of US$14.9/boe, down 15% year-over-year, reflecting efficiency gains.

• Leadership changes and a new shareholders agreement aligned management and shareholder interests.

Financial highlights

• Revenue exceeded US$2 billion in 2025, up over 15% year-over-year, with production up 46% year-over-year.

• Adjusted EBITDA reached US$806 million (+21% YoY), with margin expanding to 38.8%.

• Free cash flow to equity was US$37 million in 4Q25; all segments turned cash flow positive.

• Lifting costs reached a record low of US$14.9/boe in 2025.

• Capex for 2025 totaled US$504 million, down 47% year-over-year, with a focus on offshore and production optimization.

Outlook and guidance

• 2026 will focus on safety, production stability, cash generation, further deleveraging, and execution of drilling campaigns at Papa-Terra and Atlanta.

• Capex for 2026 expected to be slightly above US$500 million, mainly for growth and integrity recovery.

• Gradual restart of Potiguar production expected in 1H26, pending regulatory approval.

• Continued cost optimization and contract efficiency through the Brava Efficient program.

• No new major projects planned for 2027; Capex expected to decrease as current drilling campaigns conclude.