Business Context and Reporting Period
Company: TIM S.A.
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter (4Q) and Full Year 2025, ending December 31, 2025.
Date of Report: February 10, 2026.
TIM S.A. reported solid execution in 2025, achieving all annual targets. The company advanced its "3B's" strategy (Best Network, Best Service, Best Offer) and expanded its B2B and Broadband portfolios. TIM was recognized as the leader in 5G coverage in Brazil, serving 1,089 cities, and achieved six national awards in Opensignal's latest report for network quality and reliability.
Key Financial Metrics
| Metric (R$ Million) | 4Q25 | 4Q24 | YoY % | 2025 Full Year | 2024 Full Year | YoY % |
|---|---|---|---|---|---|---|
| Net Revenues | 6,920 | 6,631 | 4.4% | 26,625 | 25,448 | 4.6% |
| Service Revenues | 6,665 | 6,343 | 5.1% | 25,856 | 24,587 | 5.2% |
| Normalized EBITDA | 3,672 | 3,346 | 9.7% | 13,577 | 12,625 | 7.5% |
| Normalized EBITDA Margin | 53.1% | 50.5% | +2.6 p.p. | 51.0% | 49.6% | +1.4 p.p. |
| Normalized Net Income | 1,349 | 1,055 | 27.9% | 4,343 | 3,160 | 37.4% |
| Capex | (1,347) | (1,375) | -2.0% | (4,541) | (4,550) | -0.2% |
| Operating Free Cash Flow | 2,106 | 2,354 | -10.6% | 5,349 | 4,610 | 16.0% |
| Net Debt (Total) | 11,112 | 10,411 | 6.7% | N/A | N/A | N/A |
Note: Financial figures are in Brazilian Reais (R$). Normalized metrics exclude specific non-recurring items as defined in the filing.
Material Changes vs. Prior Period
- Revenue Growth: Total Net Revenue grew 4.6% YoY in 2025, outpacing the 2025 inflation rate (IPCA 4.26%). Mobile Service Revenue increased 5.4% YoY, driven by a robust postpaid segment (+11.2% YoY) and a deceleration in prepaid revenue decline.
- Margin Expansion: Normalized EBITDA Margin reached a record high of 53.1% in 4Q25 (+2.6 p.p. YoY) and 51.0% for the full year. This was achieved through disciplined cost management, with Normalized Operating Expenses growing only 1.8% YoY in 2025.
- Profitability: Normalized Net Income surged 37.4% YoY for the full year to R$4.34 billion, reaching the highest level ever recorded by the company.
- Customer Base: The mobile customer base remained stable at 61.97 million (-0.1% YoY), with a significant shift in mix: Postpaid customers grew 8.4% YoY, while Prepaid declined 8.3% YoY. TIM Ultrafibra (Fixed) customers grew 7.6% YoY.
- Debt Profile: Total Net Debt increased to R$11.1 billion at year-end, primarily due to higher lease liabilities, though financial debt was partially reduced. Net Debt to Normalized EBITDA stood at 0.82x.
Guidance, Outlook, and Strategic Initiatives
- Capital Allocation: The Board approved R$4.7 billion in shareholder returns (Interest on Capital and Dividends) through December 2025. Additionally, 28.7 million treasury shares were cancelled.
- Strategic Acquisitions: TIM completed the acquisition of 100% of V8. Tech in January 2026 to enhance its B2B digital transformation capabilities. Total contracted B2B revenue reached R$1 billion in 4Q25.
- Network Expansion: TIM continues to modernize 6,500 sites by 2027 and aims to maintain leadership in 5G coverage. The company is focusing on AI adoption to become an "AI-First" organization.
- Outlook: Management highlighted consistent discipline in capital allocation and expenditure focused on exploring new fronts, particularly in data monetization and IoT solutions.
- Risks and Contingencies: The filing notes provisions for legal and administrative proceedings. Bad Debt increased 10.5% YoY in 2025 due to revenue base expansion, though the ratio to Gross Revenue remained stable at 1.9%.
Investor Verification Checklist
- Normalized Adjustments: Verify the specific non-recurring items excluded from Normalized EBITDA and Net Income (e.g., legal advisory costs for V8. Tech acquisition, site decommissioning fines).
- Lease Liabilities: Review the impact of IFRS 16 on the balance sheet, as Total Lease liabilities (R$13.5 billion) significantly exceed financial debt.
- Prepaid Migration: Assess the sustainability of the shift from Prepaid to Postpaid, which drove ARPU growth but contributed to a slight decline in total mobile subscribers.
- Working Capital: Investigate the 10.6% YoY decline in 4Q25 Operating Free Cash Flow, attributed to working capital variations and a challenging comparison base from the previous year.
- Regulatory Fees: Confirm the status of the suspended TFF (Operating Inspection Fee) totaling R$4.3 billion recorded as of December 31, 2025.