JSL (JSLG3) Q4 2025 earnings summary

Executive summary

• Operating margin expanded by 3.2 p.p. in Q4 and 1.8 p.p. for 2025, with EBITDA margin reaching 20.5% and EBITDA of R$2.0 billion, up 16% year-over-year.

• Net revenue grew 6.5% year-over-year to R$9.7 billion in 2025, with 10% growth excluding intentional reductions in grain and chemicals.

• Strategic reorganization created three business units: JSL Dedicated Services, Intralog, and JSL Digital, each showing strong performance and margin focus.

• R$4.9 billion in new contracts signed in 2025, with 71% from cross-selling and 29% from new clients, and an average term of 70 months.

• Asset-light strategy, operational efficiency, and digital transformation initiatives drove margin expansion, strong cash generation, and deleveraging.

Financial highlights

• Adjusted EBITDA reached R$2.0 billion in 2025, up 16% year-over-year, with a margin of 20.5%.

• Adjusted EBIT was R$1.2 billion, margin 12.9%.

• Adjusted net income for 2025 was R$147 million, with Q4 net income at R$29.8 million, pressured by financial expenses.

• Free cash flow after investments and growth was R$392 million in 2025, with a yield of 20.9%.

• Cash at year-end was R$1.5 billion, with total liquidity of R$1.8 billion and R$320 million in undrawn credit lines.

Outlook and guidance

• Focus for 2026 is on productivity, profitability, and a return to historical growth patterns, led by Intralog and Digital units.

• Management targets continued strong cash generation, organic deleveraging, and margin expansion, with no formal guidance provided.

• Dedicated Services growth to be below historical levels due to its larger base, but profitability improvements are targeted.

• Growth in 2025 driven by new contracts, especially in food & beverage, chemicals, and consumer goods.