JSL (JSLG3) Q1 2025 earnings summary

Executive summary

• Gross revenue reached BRL 2.7 billion in 1Q25, up 12% year-over-year, with both asset-light and asset-heavy segments expanding by 12% and 11%, respectively.

• Adjusted EBITDA was BRL 458.2 million, margin of 20.6%, up 2.6 p.p. from 4Q24 and 0.3 p.p. YoY, reflecting operational margin expansion and cost control.

• Net profit was BRL 45 million, up 26.3% from 4Q24 but down 7% YoY; adjusted net income was BRL 45.1 million.

• BRL 1.8 billion in new contracts signed, including entry into the airport segment, with 88% asset-light contracts.

• Free cash flow after growth was BRL 241.2 million, supporting deleveraging efforts.

Financial highlights

• Net revenue grew 12% to BRL 2.3 billion, with 47% from cargo transportation, 34% dedicated operations, 12% warehousing, and 7% urban distribution.

• Adjusted EBITDA reached BRL 458 million (reported: BRL 454 million), up 13.8% YoY, with a margin of 20.6%.

• Adjusted net income was BRL 45 million (reported: BRL 32 million), down 7.4% YoY.

• Net CAPEX fell 85% YoY to BRL 64.8 million, reflecting a shift to leasing and less asset-intensive contracts.

• Tax benefit from ICMS credits reduced effective tax rate, with a retroactive gain of BRL 18 million.

Outlook and guidance

• Expectation of further margin and ROIC improvement as new, higher-IRR contracts mature.

• Focus on organic growth, cost reduction, operational efficiency, and digital platform scaling (JSL Digital).

• Deleveraging remains a priority, with no plans for follow-on equity issuance.