By Brazil Stock Guide – Hidrovias do Brasil S.A. (B3: HBSA3) reported a net loss of R$361 million in the fourth quarter of 2025, narrowing slightly from a R$408 million loss a year earlier, even as operating performance rebounded sharply following the normalization of river conditions across its main corridors.
Recurring adjusted EBITDA reached R$160 million in 4Q25, compared with negative R$8 million in 4Q24, as volumes surged 65% year-on-year to 3.6 million tonnes. Net revenue climbed 92% to R$509 million, reflecting improved navigability in both the North and South corridors after last year’s severe drought disruptions.
Operating Rebound
The North corridor led the turnaround, with volumes more than tripling year-on-year amid restored water levels. In the South corridor, iron ore shipments drove a recovery as conditions along the Paraguay–Paraná waterway improved.
Sequentially, however, EBITDA declined 56% from 3Q25 due to seasonal river constraints typical of the dry period, underscoring the business’s continued exposure to hydrological cycles.
Balance Sheet Strengthens
Net debt fell to R$2.2 billion at the end of December, down 45% from a year earlier, supported by stronger cash generation, a capital increase earlier in 2025 and the November completion of the Coastal Navigation divestment.
Leverage dropped to 2.3x from 7.0x in 4Q24, while the company eliminated foreign-exchange exposure, with 100% of debt now hedged.
Transition Quarter
Despite operational gains, the bottom line remained pressured by asset write-offs and discontinuation effects tied to the coastal unit sale.
Operating cash generation totaled R$219 million in the quarter, marking a significant recovery from negative cash flow a year earlier and reinforcing the view that 4Q25 represents an operational inflection point — even as earnings volatility remains tied to climate risk.
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