By Brazil Stock Guide – Brazil’s state-run postal service Correios reported a net loss of 8.5 billion reais ($1.6 billion) in 2025, weighed down by mounting legal liabilities and higher operating expenses, according to company disclosures released Thursday (23).
The company said the results reflect ongoing efforts to address legacy obligations while implementing structural measures aimed at improving long-term financial sustainability.
Gross revenue totaled 17.3 billion reais, marking an 11.35% decline from 2024. At the same time, provisions tied to legal disputes reached 6.4 billion reais, significantly impacting the bottom line.
A substantial portion of these liabilities is linked to labor-related claims, including additional compensation for external distribution activities (AADC) and hazard pay. These provisions have increased personnel-related costs and contributed to the company’s overall deficit.
“The balance sheet reflects a scenario of addressing historical liabilities and intensifying structural measures to ensure the company’s long-term sustainability,” Correios said in a statement.
The company added that recognizing these obligations is part of a governance strategy designed to improve transparency and reduce uncertainty in future reporting cycles. “This governance measure ensures that the company’s liabilities are accurately represented, eliminating uncertainties for future cycles,” it said.
Correios ended the year with negative equity of 13.1 billion reais, underscoring the pressure from declining revenue and rising financial obligations.
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