By Brazil Stock Guide – Companhia Brasileira de Alumínio (B3: CBAV3) posted a net profit of R$131 million (US$24 million) in the third quarter of 2025, up 51% from a year earlier and reversing the R$73 million loss recorded in the previous quarter. The bottom line benefited from positive mark-to-market effects on energy contracts and the appreciation of aluminum prices on the London Metal Exchange, which helped counter persistent cost pressures.
Operational performance and margins
Net revenue reached R$2.25 billion (US$413 million), a 5% year-on-year and 12% quarterly increase, supported by higher sales volumes and an average LME aluminum price of US$2,618 per ton, up 10% from 2024. Adjusted EBITDA fell 43% to R$234 million, with a margin of 10%, reflecting elevated energy and raw material costs. The company reported a gross profit of R$199 million, down 45% from a year earlier, while improved financial and derivative results provided relief to overall profitability.
Financial discipline and strategy
CBA said the improvement in results reflects its focus on efficiency and capital discipline. Net debt stood at R$3.3 billion, with leverage at 2.45x EBITDA, while investments remained centered on maintenance and energy integration. The company advanced its renewable strategy with the acquisition of 60 MWm in wind assets from Casa dos Ventos, securing long-term energy supply for aluminum production and maintaining a 100% renewable matrix.
Market environment
Aluminum prices traded above US$2,600/t throughout the quarter, lifted by the Federal Reserve’s first interest-rate cut in September, which weakened the dollar and encouraged speculative inflows into commodities. China’s resilient demand in the automotive and electronics sectors continued to support prices, though cost inflation and exchange-rate volatility remain key risks for producers globally.
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