CM Hospitalar (VVEO3) Q4 2025 earnings summary

Executive summary

• Operational discipline, integration of acquisitions, and completion of a critical integration cycle in 2025 led to improved controls, cash management, and business growth, especially in Q3 and Q4.

• Achieved record annual cash generation and consistent gross margin expansion, reflecting strategic execution and cost reduction.

• Succession process completed with André Clark assuming CEO role, ensuring governance, continuity, and a focus on simplification for 2026.

• Entering a new phase prioritizing operational discipline, deleveraging, and employee engagement.

Financial highlights

• Q4 2025 net revenue grew 6.7% year-over-year to R$ 3,132.9 million, with three consecutive quarters of growth; full-year revenue was R$ 11,566.9 million, down 0.1% from 2024.

• Q4 2025 adjusted EBITDA was R$ 196.0 million, up 19.4% year-over-year, with margin up 0.7 percentage points to 6.3%; FY2025 adjusted EBITDA reached R$ 706.3 million (+8.3% YoY), margin 6.1%.

• Q4 2025 gross profit was R$ 447.1 million (+15.7% YoY), with gross margin expanding by 1.1 percentage points to 14.3%.

• Record free cash flow generation of R$ 519.1 million for 2025, more than double 2024, with working capital gains exceeding R$ 600 million.

• Net loss persisted due to high financial expenses, though FY2025 net income was R$ 18.2 million versus a R$ 1,415.5 million loss in 2024.

Outlook and guidance

• 2026 expected to continue growth with a focus on profitability, operational efficiency, working capital improvements, and sustainability.

• Selective contract strategy will persist, prioritizing margin over volume, with anticipated growth in hospitals, clinics, and vaccine segments.

• Efficiency gains in 2026 will be lower than 2025 but remain significant, with further improvements in logistics, industrial operations, and expense management.

• Deleveraging and sustainable cash generation are central to the next growth cycle, with ongoing debt renegotiation expected to conclude in Q2 2026.