Companhia Brasileira de Alumínio (CBAV3) Q3 2025 earnings summary

Executive summary

• Liquid aluminum production recovered post-refinery maintenance, improving KPIs and reducing alumina costs, with operational efficiency gains and resumed output supporting results.

• Acquisition and integration of wind power assets secured 60 aMW for 2025, diversifying the energy matrix and reinforcing the renewable energy strategy without additional costs.

• ESG initiatives advanced, scoring 74/100 in S&P Global Corporate Sustainability Assessment and maintaining inclusion in the IDIVERSA B3 index for diversity, equity, and inclusion.

• Debt profile improved with a second debenture issuance, early settlements, and extended average term, reducing average cost and optimizing capital structure.

• Strategy focuses on sustainable growth, maximizing asset value, and maintaining a leading position in low-carbon aluminum production.

Financial highlights

• Consolidated net revenue reached R$2.3 billion, up 5% year-over-year, driven by higher sales volumes and improved pricing.

• Aluminum business revenue was R$2.1 billion, with sales volume at 132,000 tons (+2% YoY); average LME aluminum price was USD 2,618/ton (+10% YoY).

• Adjusted EBITDA was R$234 million (10% margin), down 43% year-over-year but up 24% sequentially.

• Net income was R$131 million, up 51% year-over-year, reversing a loss in 2Q25.

• Free cash flow was positive, supported by divestment in working capital.

Outlook and guidance

• Expect further cost reductions, especially in alumina, with normalization anticipated by early 2026; maintenance capex to remain concentrated in the next quarter.

• CapEx flexibility maintained, with sustaining CapEx at R$500 million and expansion/modernization at R$300 million, adjustable based on market conditions.

• Aluminum demand outlook remains favorable, with expected consumption growth supporting prices; LME prices continue upward amid market resilience.

• Surplus energy from new wind assets may be available for commercialization, subject to market prices.

• Residual effects from refinery maintenance shutdown expected to impact next quarter.