# C&A 4T25 Results Show Profit Jump Despite Lower Sales

*C&A 4T25 results highlight margin expansion, lower debt and stronger cash generation even as revenue declines 3.2% year over year.*

- Published: 2026-02-24
- Section: Insights
- Tags: Brazil apparel sector, Brazil consumer stocks, Brazil retail earnings, C&A 4T25 results, C&A profit 2025, CEAB3 earnings, CEAB3 stock, Latin America retail
- URL: https://brazilstockguide.com/insights/c-and-a-4t25-results/

![C&A 4T25 results reflected in strong store performance at a C&A retail location in Brazil.](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/11/CA-retailm-fashion.png?fit=1024%2C683&ssl=1)

*C&A 4T25 results show profit growth and margin expansion at the Brazilian fashion retailer.*

**By Brazil Stock Guide** – C&A (B3: CEAB3) posted higher profitability in the fourth quarter of 2025, according to its latest earnings report. Net income reached R$313.2 million, up 22.9% compared with 4T24. Adjusted net income rose 7.9% to R$269.8 million, supported by improved operating efficiency and lower financial expenses.

Revenue totaled R$2.47 billion, down 3.2% year over year. The contraction was largely driven by the discontinuation of smartphone sales, which reduced electronics revenue by 28.6%. Apparel, the company’s core segment, grew 0.6% during the quarter and 9.2% for the full year, indicating stability in its main business line.

### Margin Improvement

A key takeaway from the C&A 4T25 results was margin expansion. Gross margin — the portion of revenue remaining after product costs — increased to 55.7%, up 1.2 percentage points from a year earlier. The gain reflects tighter inventory control, improved product mix and pricing discipline.

Adjusted EBITDA reached R$560.1 million under IFRS-16 standards, or R$431 million on a pre-IFRS basis. In practical terms, the business continued to generate solid operating cash even without strong sales growth.

### Balance Sheet Strengthening

Another important aspect of the C&A 4T25 results was the significant reduction in leverage. Net financial expenses declined 18.1% to R$80.9 million, reflecting lower debt levels and improved cash management.

The company ended the quarter with a net cash position of R$84 million, compared with R$510 million in net debt one year earlier. This shift strengthens financial flexibility heading into 2026.

Operating cash flow totaled R$485.5 million. Free cash flow declined 28.4%, however, due to a 57% increase in capital expenditures to R$188 million, mainly for store openings, renovations and logistics investments.

Overall, the C&A 4T25 results suggest a company prioritizing profitability and balance sheet repair over aggressive top-line growth. Even with slightly lower revenue, stronger margins and reduced debt supported earnings expansion.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/c-and-a-4t25-results/