Correios Posts Record R$8.5 Billion 2025 Loss as Cash Crunch Deepens

Overview

• Correios, which disclosed results Thursday, logged its worst annual loss on record and marked 14 straight quarters in the red.
• Judicial liabilities drove the result, with about R$6.4 billion in precatórios — court‑ordered payments — and higher operating costs eroding finances.
• Revenue fell 11% to R$17.3 billion after international parcels dropped by about two‑thirds once Brazil began taxing low‑value imports under the Remessa Conforme program.
• Banks triggered a covenant tied to the rising stock of precatórios and blocked company receipts in the second half of 2025, which choked supplier payments and strained operations.
• The company shored up liquidity with a R$12 billion Treasury‑backed loan and is now weighing a smaller 2026 raise than the R$8 billion first planned, as the government projects state‑company deficits through 2030 and possible Correios transfers through 2027.