Brazilian Mid-Sized Firms Post Best Net Margin Since 2021 Despite High Rates

Brazilian medium-sized enterprises achieved a 12.8% net margin in 2025, the highest since 2021, with average net profit reaching R$10 million, even as net revenue fell 3.6% to R$77.9 million. The margin improvement amid a 15% Selic rate suggests cost rationalization and better working capital management, but the revenue decline signals underlying demand weakness. This mixed result indicates resilience in corporate profitability but potential fragility in top-line growth.