By Brazil Stock Guide – Azul SA reported a net profit of R$1.47 billion ($266 million) in the second quarter of 2025, reversing a R$3.81 billion loss in the same period a year earlier. The results, disclosed by Valor Econômico on Thursday, showed that on an adjusted basis the carrier still posted a net loss of R$475.8 million, narrowing the shortfall by 29% from a year ago.
The sharp turnaround was driven largely by financial results, which swung to a R$1.5 billion gain from a R$4.28 billion loss in the second quarter of 2024. The improvement stemmed mainly from R$1.77 billion in net monetary and foreign exchange gains, as the appreciation of the Brazilian real against the US dollar reduced lease and loan liabilities denominated in foreign currency. A year earlier, currency movements had generated losses of R$2.85 billion.
Revenue Growth Outpaced by Rising Costs
Between April and June, operating revenue reached R$4.94 billion, up 18.4% from a year earlier. Operating costs and expenses, however, climbed 22.3% to R$4.56 billion.
Operating income (Ebit) came in at R$380 million, down 13.9% year-over-year. Earnings before interest, taxes, depreciation and amortization (Ebitda) totaled R$1.14 billion, an increase of 8.6%, while the Ebitda margin fell 2.1 percentage points to 23.1%.
Debt Reduction and Leverage Improvement
Net debt stood at R$30.13 billion at the end of June, a 3.9% decrease from March. Leverage, measured by net debt to Ebitda over the past 12 months, fell to 4.9 times from 5.2 times in the first quarter.
Profit Excluding Convertible Debenture Effect
Excluding the impact of convertible debenture conversion rights, net income was R$1.29 billion for the quarter, compared with a R$3.55 billion loss in the same period of 2024.
Leave a Reply