Itaúsa (ITSA4) Q4 2025 earnings summary

Executive summary

• Achieved record recurring net income of R$16.5 billion in 2025, up 11% year-over-year, with recurring ROE at 18.4% and shareholders' equity at R$88.8 billion, a 2% decrease from the previous year.

• Portfolio market value reached R$209.9 billion, up 66% year-over-year, with a 23.8% discount to NAV.

• Total shareholder return was 59% in 2025, significantly outperforming the Ibovespa (+34%) and benchmarks over 10 years.

• Dividend payout reached R$11.9 billion, a 24% increase, with a payout ratio of 76% and a dividend yield of 14.7%, among the highest on B3.

• Recognized for governance, sustainability, and transparency, maintaining presence in major sustainability indices and receiving awards.

Financial highlights

• Net debt reduced to R$0.3 billion, a 67% decrease from December 2024, with gross debt reduced by over 30% and average cost of CDI+1.11% p.a.

• Financial sector investees contributed R$16.7 billion to net income, up 10% year-over-year; non-financial sector contributed R$1.1 billion, up 42%.

• Administrative expenses remained flat year-over-year, despite inflation above 4%.

• Financial result stable, with interest expenses dropping due to liability management and cash profitability at R$441 million.

• Non-recurring effects in 2025 included impairments and extraordinary provisions, with a net positive impact of R$14 million.

Outlook and guidance

• Management expects continued resilience and growth in 2026, despite ongoing macroeconomic uncertainties, high interest rates, and political risks.

• Brazilian GDP projected to grow 2.3% in 2025 and 1.9% in 2026; Selic rate expected to decrease to 12.25% in 2026; inflation forecasted at 4.3% in 2025 and 3.8% in 2026.

• Anticipates further reduction in tax expenses due to the end of PIS/COFINS, improving fiscal efficiency and potentially reducing the holding discount.

• Ready for a new investment cycle if macroeconomic conditions improve, with flexibility to leverage or disinvest as opportunities arise.

• Ongoing integration of sustainability into portfolio management and risk frameworks.