TIM (NYSE:TIMB) used its fourth-quarter earnings call to highlight what management described as a year of consistent execution in 2025, marked by service revenue growth above inflation, margin expansion and disciplined capital allocation.
Chief Executive Officer Alberto Griselli said service revenue rose 5.2% year-over-year in 2025, while EBITDA increased 7.5% and the EBITDA margin reached 51%. CapEx was “essentially flat” versus 2024, and operating cash flow grew 15.7% to 16% for the year, depending on the metric cited on the call, with the CFO noting a 22.7% operating cash flow margin. TIM also closed 2025 with BRL 4 billion in cash shareholder remuneration, plus BRL 750 million in share buybacks, which CFO Andréa Viegas said represented a 139% payout ratio.
Mobile growth led by postpaid
Postpaid ARPU, excluding machine-to-machine, was “almost BRL 55,” up 3.1% year-over-year, which the CEO attributed to migrating customers to higher-value offers while keeping churn under control. He added that the prepaid segment showed more encouraging signs, with the revenue decline decelerating for a third consecutive quarter, as targeted offers, segmentation and customer experience initiatives began to gain traction.
Network investments, modernization, and 5G positioning
Griselli reiterated TIM’s network leadership claims, saying the company remained Brazil’s 5G leader with coverage in more than 1,000 cities—52% more than the second player. He also referenced TIM’s performance in Opensignal’s latest report, noting six national awards and wins in categories such as consistent quality and reliability.
A major milestone cited during the call was the completion of a network modernization project in São Paulo, which management said improved 4G and 5G coverage, capacity and overall quality in Brazil’s largest market. Griselli said the modernization approach is being extended to other cities, with a plan to swap around 6,500 sites in major capitals through 2027.
Broadband returns to growth; I-Systems transaction
In fixed services, Griselli characterized 2025 as a turning point for TIM UltraFibra after “adjustment and portfolio optimization.” He said broadband revenues returned to growth in the fourth quarter, with nearly complete migration from FTTC to fiber. By year-end, TIM had 850,000 broadband customers and FTTH ARPU of roughly BRL 95. UltraFibra revenues grew 6.2% year-over-year in the fourth quarter, supported by improved net additions, according to management.
Griselli also announced during the call that TIM acquired full control of I-Systems, describing it as a step designed to improve the efficiency of the broadband operation, enhance end-to-end customer experience and “position ourselves for future movements.” In the Q&A, he said the move would provide more operational control and is expected to be accretive to margin expansion but “a bit dilutive on CapEx,” while overall neutral for free cash flow generation.
Responding to a question about whether the transaction signaled a lower probability of selling the fiber business, Griselli said a sale “has never been actually on the table,” adding that the company continues to assess opportunities intended to increase value generation.
B2B milestone and sector-specific progress
TIM’s B2B business was framed as an established growth engine. Griselli said the company surpassed BRL 1 billion in total contracted value across all verticals. He cited progress in several areas, including agribusiness coverage surpassing 26 million hectares, logistics expansion to more than 10,000 kilometers of highways, and the sale of nearly 470,000 smart lighting points in utilities. He also referenced connectivity projects in mining spanning 4G, 5G and IoT.
Looking to 2026, Griselli said TIM plans to drive value creation through mobile, B2B and broadband, supported by artificial intelligence, efficiency and ESG. He noted that the acquisition of V8 was an “important step” to enhance B2B capabilities, without providing further financial detail on the call.
Cost discipline, margin drivers, and 2026 considerations
Viegas said OpEx increased 1.8% year-over-year in 2025, which she framed as evidence that TIM’s efficiency program is structural. She also pointed to lease-related initiatives, with EBITDA after lease up 8.3% year-over-year.
In Q&A, Viegas said some fourth-quarter margin strength included specific items, including quarterly swings in visitor interconnection costs and a reduction in taxation related to overtime pay. On the overtime tax item, she said the fourth quarter concentrated impacts related to prior years, implying smaller benefits going forward and that the overall gains were not sizable within total OpEx.
On network and interconnection expenses, Viegas said some components decreased (including visitor-related items), while others increased, such as content providers tied to offers that include streamers, as well as costs related to 5G expansion.
Addressing mobile portability trends, Griselli said overall churn was “almost stable” across quarters, but the share of portability within churn increased, influenced in part by competitors’ commercial practices. He added that first-quarter price adjustments tend to pressure churn and could lead to softer net additions, noting customer communications started in December. On NuCel, he said TIM’s internal indicators suggest the impact is not material so far, while noting the regulator stopped sharing NuCel subscriber numbers.
On tower leases, management said it continues to work on efficiencies and expects lease costs to grow at most with inflation and slower than revenues, which would imply a stable to slightly declining lease-to-revenue ratio even as 5G expansion continues. Griselli referenced a completed negotiation with American Tower last year and said additional negotiations are ongoing, alongside network-sharing discussions.
On Brazil’s tax reform, Viegas said there is no impact expected in 2026 and that 2027 is expected to be neutral on free cash flow, while declining to provide estimates beyond that timeframe.
About TIM (NYSE:TIMB)
TIM SA, a telecommunications company, provides mobile voice, data, and broadband services in Brazil. The company offers in mobile, landline, long-distance, and data transmission services. It also offers fixed ultra-broadband, fixed ultraband broadband, and digital content services. The company serves individuals and corporates, as well as small, medium, and large companies. TIM S.A is based in Rio de Janeiro, Brazil. The company operates as a subsidiary of TIM Brasil Serviços e Participações SA
