Debt on the Rise: A Look at Corporate Debt in 2025

Against a backdrop of real revenue growth for Brazil’s top thousand companies at around 2.4% in 2025, a concerning trend emerged: corporate debt reached historical levels. The debt-to-equity ratio for medium-sized companies within the Valor 1000 ranking climbed to 72.2% by 2025, surpassing previous peaks seen in 2015 and 2019. This increase reflects a period of historically low interest rates and easy access to corporate credit, particularly post-pandemic in 2020. Sector dynamics also shifted significantly: technology and automotive sectors declined in importance while agriculture and food and beverages gained prominence. These developments raise questions about the financial sustainability of large corporations over the medium term, especially amid a globally inflationary environment that pressures pricing and profit margins. In summary, 2025 marks a new era for corporate debt in Brazil, with implications for the country’s future economic trajectory.