BRF, Azul, and CPFL Energia: Q2 2025 Results Reveal Economic Shifts

In the second quarter of 2025, three of Brazil’s most important companies—BRF, Azul, and CPFL Energia—reported results that show how different parts of the economy are coping with tough conditions. BRF is a leader in food, selling brands like Sadia and Perdigão.

Azul is a prominent airline flying both within Brazil and abroad. CPFL Energia runs a major part of the country’s electricity grid, delivering power and expanding into renewable energy. Their official reports highlight what’s working and what’s not.

BRF: Profits Drop Despite Strong Sales at Home

BRF, one of Brazil’s biggest meat producers, earned a profit of R$735 million (about $129 million). This was a 33% drop from last year. BRF’s total sales actually grew to R$15.3 billion ($2.7 billion), as Brazilians kept buying its products.

In Brazil, sales jumped 18% to R$8.1 billion ($1.4 billion), driven by strong demand for foods from its Sadia and Perdigão lines. But selling abroad proved much tougher. BRF’s international sales fell 5% to R$6.7 billion ($1.2 billion).

Many key countries—including China and much of the European Union—temporarily banned Brazilian poultry due to bird flu, hurting export volumes. Costs also climbed.

BRF spent 2.5% more making its products, about R$11.2 billion ($2.0 billion), mostly due to rising grain prices and higher costs in Turkey. Marketing and shipping costs rose too, costing an extra R$2.3 billion ($404 million).

The company’s operating profit (EBITDA) slipped 5% to R$2.5 billion ($439 million). BRF’s total debt reached R$4.7 billion ($825 million), and it spent R$696 million ($122 million) more on financial expenses—mostly higher interest and hedging costs.

The story is clear: even with strong brands and steady demand at home, trade barriers and rising expenses are wearing down the bottom line.

Azul: Back in the Black, But Still in Recovery

Azul, a major Brazilian airline, finally posted a profit in Q2: R$1.29 billion ($226 million), a turnaround from a huge R$3.5 billion ($614 million) loss a year earlier.

However, the good headline hides that, once you remove special items, Azul still lost R$476 million ($83 million). The airline’s sales reached a record R$4.9 billion ($860 million), up 18%.

People are flying again, and Azul expanded its international routes by nearly 37%, while domestic operations grew nearly 13%—a rebound after last year’s floods slowed business.

Still, flying costs rose to R$35.57 cents per seat (up 4%), due to a weaker currency and rising court cases. A major development was a US court allowing Azul to renegotiate aircraft leases with its largest lessor, which should help save over $1 billion on future fleet costs.

Azul says it will keep reshaping its business, cutting costs and adapting its routes as it recovers, but its road to stability isn’t over yet.

CPFL Energia: Profits Climb, But Renewable Power Feels the Strain

CPFL Energia, a key electricity provider controlled by China’s State Grid, booked a profit of R$1.18 billion ($207 million), up 8%. The company’s overall operating profit (EBITDA) grew to R$3.0 billion ($526 million).

Success came from power distribution, where profits rose by 22% to R$2.0 billion ($351 million). Tariffs increased and the number of customers defaulting on payments fell by over a third, boosting earnings.

Yet the renewable power side struggled. Restrictions (“curtailments”) by Brazil’s power grid operator slashed renewable output, with cuts averaging 21% early this year.

As more people and businesses install solar, grid limits are becoming more obvious. CEO Gustavo Estrella says CPFL will pause new renewable investments.

For now, it looks to grow by bidding for new electricity transmission lines this fall, and possibly raising money overseas thanks to a recent credit upgrade.

The big picture for all three companies: strong brands and positions help in some markets, but outside shocks—from global regulations to currency swings—can quickly upend even the best-run firms.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.