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Introduction & Market Context
Itaúsa (BOVESPA:ITSA4), one of Brazil’s largest investment holding companies, reported record results for the first half of 2025, with significant growth across key financial metrics despite a challenging macroeconomic environment. The company’s presentation highlighted strong performance across its diverse portfolio of investments, particularly in the financial sector.
The Brazilian economic outlook shows mixed signals, with GDP growth expected to slow from 3.4% in 2024 to 2.2% in 2025 and 1.5% in 2026. Meanwhile, the Selic rate is projected to rise to 15.00% in 2025 before declining to 12.75% in 2026, while inflation (IPCA) is expected to peak at 5.2% in 2025 before falling to 4.4% in 2026.
As shown in the following macroeconomic forecast chart:
Despite these economic headwinds, Itaúsa’s shares have significantly outperformed major market benchmarks, delivering returns of 28.7% over the past 12 months, compared to 12.1% for the IBOVESPA and 13.6% for the S&P500. Over longer timeframes, the outperformance is even more pronounced, with ITSA4 shares returning 102.7% over five years and 285.2% over ten years.
The following chart illustrates Itaúsa’s share performance against major benchmarks:
Quarterly Performance Highlights
Itaúsa reported record results for the first half of 2025, with net income reaching R$ 8.0 billion, up 10% compared to the same period in 2024. Recurring net income also grew by 10% to R$ 7.9 billion, while shareholders’ equity increased by 7% to R$ 89.6 billion. The company achieved a return on equity (ROE) of 18.0% per year, representing an increase of 0.4 percentage points from 1H24.
The company’s portfolio market value reached R$ 159.3 billion, up 24% compared to June 30, 2024, reflecting strong performance across its investee companies.
The following slide highlights Itaúsa’s record results for 1H25:
Despite this strong performance, Itaúsa continues to trade at a significant discount to its portfolio value. As of July 2025, the company’s portfolio market value stood at R$ 151.7 billion, while its market capitalization was only R$ 113.8 billion, representing a discount of 25.0%. This suggests potential undervaluation of Itaúsa’s shares.
The following chart illustrates the discount between Itaúsa’s portfolio value and market capitalization:
Detailed Financial Analysis
Itaúsa’s strong performance was driven primarily by its investee companies, particularly Itaú Unibanco, which contributed R$ 8,072 million to Itaúsa’s results. The non-financial sector contributed R$ 503 million, representing an increase of 23% compared to 1H24.
Among the non-financial investments, Copa Energia was the largest contributor with R$ 144 million, followed by NTS (R$ 129 million), Motiva (R$ 97 million), Alpargatas (R$ 65 million), Dexco (R$ 36 million), and Aegea (R$ 30 million).
The following breakdown shows the contribution of each investee to Itaúsa’s results:
All of Itaúsa’s major investees reported positive results for 1H25. Itaú Unibanco, the largest contributor, reported a net income of R$ 21.6 billion, up 9% from 1H24, with a recurring ROE of 21.0%. Alpargatas showed particularly strong growth, with recurring EBITDA up 122% and recurring net income up 250%. Aegea also performed well, with consolidated adjusted EBITDA up 22% and consolidated net income up 19%.
The following chart compares the recurring results of Itaúsa’s investees in 1H25 versus 1H24:
Strategic Initiatives
A key focus of Itaúsa’s strategy has been liability management, which has yielded impressive results. Since September 2022, the company has reduced its gross debt by 57% and its net debt by 90%. Debt service has decreased by 58%, while the average term has increased by 2.2 years. Notably, Itaúsa now has no debt amortization until 2028, providing significant financial flexibility.
The following slide illustrates the track record of Itaúsa’s liability management strategy:
Itaúsa’s pro forma financial position after liability management shows a net debt of R$ 587 million, leverage of 0.4x, and interest coverage of 14.3x. The company’s debt has an average cost of 1.37% per year and an average term of 6.5 years.
The company has also maintained its commitment to shareholder returns, declaring R$ 2.7 billion in dividends for 1H25, representing R$ 0.25 per share. This continues a trend of growing dividends, with total dividends increasing from R$ 3,993 million in 2022 to R$ 9,597 million in 2024.
The following chart shows the growth in Itaúsa’s dividend payments:
Forward-Looking Statements
Looking ahead, Itaúsa highlighted several key areas of focus across its portfolio. For Itaú Unibanco, the emphasis is on sustainable growth, high profitability, customer-centric culture, and digital transformation. Dexco is focusing on its Wood Division, while addressing challenges in Tiles, Metals, and Sanitary Ware. Alpargatas is prioritizing operational efficiency and focus on core businesses.
Motiva is focusing on operational efficiency and disciplined capital allocation, while Aegea is expanding through new concessions and increasing billed volume. Copa Energia continues to generate consistent value and strong cash flow, while NTS provides predictability with strong cash generation.
The following slide summarizes the key focus areas for Itaúsa and its portfolio companies:
Itaúsa has announced its next Panorama event for September 30, 2025, where it will likely provide further updates on its strategy and outlook. Given the company’s strong performance in the first half of 2025 and its successful liability management strategy, Itaúsa appears well-positioned to continue delivering value to shareholders despite the challenging macroeconomic environment in Brazil.
Full presentation:
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