By Brazil Stock Guide – Oi S.A. (B3: OIBR3) argued that its steep losses in the first half of 2025 do not mean insolvency, but rather a transition period weighed down by legacy services and historical liabilities. In a filing with the 7th Business Court of Rio de Janeiro, the company said approval of the amended restructuring plan is critical to secure liquidity and capture efficiency gains already under way.
In the period, the carrier posted a statutory EBITDA loss of R$ 1.05 billion (US$ 200 million). The figure was hit by the sale of loss-making units (–R$ 213 million/US$ 41 million), legacy operations in shutdown (–R$ 816 million/US$ 155 million) and historical contingencies (–R$ 284 million/US$ 54 million). Excluding these items, Oi estimates an adjusted operational EBITDA of R$ 260.6 million (US$ 50 million).
“The decline in net revenue and negative cash flow in the short term are typical of a strategic transition phase,” the company said.
Oscar and Fênix projects at the core of the turnaround
The Oscar Project, which will fully shut down copper networks by December 2025, has already cut costs by about 50% and is expected to deliver cumulative savings of R$ 2.3 billion (US$ 438 million) since 2023, along with an extra R$ 250 million (US$ 48 million) from selling scrap copper.
At the same time, the Fênix Project aims to modernize Oi Soluções’ B2B platforms. IT expenses have already fallen from R$ 60 million (US$ 11 million) to R$ 43 million (US$ 8 million) in 2025. From 2028 onwards, Oi expects costs to stabilize at lower levels, allowing growth in digital and cybersecurity services.
Oi is betting on the corporate segment as its new core. Oi Soluções generated R$ 3.1 billion (US$ 590 million) in 2024 and R$ 1.4 billion (US$ 267 million) in the first half of 2025. Management says the unit is sustainable and profitable but still burdened by an oversized structure inherited from past operations.
The company also highlights monetizable assets: a portfolio of 7,880 properties worth about R$ 5.8 billion (US$ 1.1 billion) and a 27.26% stake in V.tal, valued between R$ 11 billion and R$ 13.5 billion (US$ 2.1–2.6 billion). These assets are seen as key to supporting liquidity and reducing debt.
Outlook
Oi’s immediate challenge is to complete the copper switch-off and secure court approval of the restructuring amendment this year. The company expects that from 2026 it will capture structural savings and reposition itself as a provider of digital solutions for corporate and government clients. The main risk is time: without swift progress, cash burn could strain its fragile liquidity even further.
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