Intelbras (INTB3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$1,246.4 million in 2Q25, up 5.1% year-over-year and 35.3% quarter-on-quarter, marking a record after ERP migration disruptions.

• Net income was R$136.3 million, a 15.9% increase year-over-year and over 120% higher than 1Q25, with a net margin of 10.9%.

• EBITDA reached R$154.4 million, up 90.2% quarter-on-quarter, with a margin of 12.4%, reflecting normalized operations post-ERP migration.

• Corporate structure was reorganized, integrating market intelligence, channel management, and marketing to enhance agility and customer experience.

• The company is prioritizing sustainable, profitable growth over volume, with a renewed focus on customer-centricity and operational efficiency.

Financial highlights

• Gross margin was 29.3% in Q2, stable year-over-year despite temporary PVA impacts.

• Operating cash flow exceeded BRL 225 million, with cash and cash equivalents increasing by R$177.7 million to R$825.6 million.

• CapEx for 1H25 was R$59 million, down 44.3% from 1H24, reflecting lower expansion needs.

• Inventory days reduced to 150, with inventory dropping from BRL 2 billion to under BRL 1 billion.

• Finance income grew 20.4% sequentially, while finance costs fell 17.8% from 1Q25.

Outlook and guidance

• Focus remains on improving working capital, cash generation, and ROIC, with further cash generation expected in 2H25.

• Security segment expects continued growth, leveraging normalized inventories and strong market position.

• ICT segment faces a challenging environment with fierce competition and cautious revenue outlook.

• Energy segment anticipates ongoing revenue pressure, focusing on profitability and growth in UPS and vehicle charger lines.