Diagnósticos da América (DASA3) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter EBITDA of R$708 million, up 11% year-over-year, and the best net result since 2022, driven by operational improvements and strategic focus on core businesses.

• Successfully completed the joint venture with Amil on April 1, 2025, forming Rede Américas, one of Brazil's largest independent hospital groups, and deconsolidated R$3.5 billion in net debt.

• Continued operational excellence initiatives, reducing administrative expenses, optimizing diagnostics and hospital operations, and supporting EBITDA margin growth and high NPS scores.

• Sustained positive trend in operating cash generation and reduced financial leverage, driven by disciplined working capital management and focused investments.

• Leadership transition with new CFO and CEO appointments for Dasa and Rede Américas, with Rafael Lucchesi to become CEO from July 1, 2025.

Financial highlights

• Consolidated gross revenue reached R$4.2 billion in 1Q25, up 4% year-over-year; net revenue was R$3.8 billion, up 3%.

• Adjusted gross profit rose 8% to R$1.2 billion, with adjusted gross margin improving up to 2.1 p.p. year-over-year.

• EBITDA increased 11% to R$708 million, with margin up to 31.8% on an adjusted basis.

• Net loss reduced to R$111 million from R$176 million in 1Q24, reflecting improved operational performance.

• Investments totaled R$69 million, consistent with or up 29% year-over-year, mainly in maintenance, expansion, and technology.

Outlook and guidance

• Management is optimistic about further margin expansion and operational improvements, supported by the new structure and identified synergies from the joint venture.

• Focus remains on core diagnostics and oncology businesses, with B2C and premium segments expected to drive growth.

• B2B opportunities in lab-to-lab, hospital diagnostics, and public markets are being actively pursued.

• Continued advancement of operational excellence and efficiency programs, and integration of the Amil joint venture.