Randoncorp (RAPT4) investor relations material

Strategic priorities and business transformation

• Focus on capturing value from an integrated mobility, aftermarket, services, and technology platform, leveraging a global presence in 125 countries and a diversified portfolio for resilience and growth.

• Emphasis on sustainable development, with zero waste to landfills, full effluent reuse, and significant investments in environmental projects and R&D, including 76 patents registered in 2025.

• Expansion of synergies between businesses and geographies, business simplification, and integration to maximize return on invested capital.

• Ongoing deleveraging, disciplined capital allocation, and prioritization of cash generation as key financial drivers.

• Transformation of the portfolio to increase aftermarket and international revenue share, reducing concentration and enhancing resilience.

Financial performance and discipline

• Net revenue grew from R$5.4B in 2020 to R$13.1B in 2025, with international and aftermarket segments now representing over 54% of revenue.

• Adjusted EBITDA margin remained resilient, ranging from 12.2% to 14.8% between 2020 and 2025, despite market cycles.

• Working capital cycle improved from 76 days in 2020 to 66 days in 1Q26, with a reduction of approximately R$1.4B in 2025.

• Leverage reduced from 3.2x in 2020 to 0.7x in 2026, supported by asset divestments, cost containment, and capital market operations.

• CAPEX prioritized for short-term returns, with annual investments ranging from R$198M to R$460M over 2020–2026.

OEM and aftermarket business developments

• OEM segment generated R$6.9B in net revenue in 2025, accounting for 52% of total, with stable market share leadership in Brazil and expansion in railcars and exports.

• Largest railcar order in company history secured, with 721 units to Arauco and further deliveries planned through 2027.

• Aftermarket revenue grew at a 22.8% CAGR, reaching R$5.9B in 2025, driven by M&A, portfolio expansion, and global distribution.

• Strategic projects in auto parts, including new factories and joint ventures, expanded capacity and product offerings, with a historic R$7B order for front axles.

• Digitalization, logistics optimization, and a one-stop-shop portfolio strengthened aftermarket resilience and customer proximity.