Marcopolo (POMO4) Q1 2025 earnings summary

Executive summary

• Net revenue grew 1.3% year-over-year to BRL 1,677.4 million in Q1 2025, driven by strong international operations and exports, despite a decline in domestic revenue.

• Net income was BRL 243.1 million (14.5% margin), down 23.3% year-over-year, impacted by a less favorable sales mix and seasonality.

• EBITDA was BRL 262.0 million (15.6% margin), down 16.9% year-over-year, reflecting a less favorable sales mix and seasonality.

• International operations and exports showed strong growth, offsetting weaker domestic performance.

• Brazilian bus production rose 13.7% year-over-year, led by a 46.3% increase in the Microbus segment.

Financial highlights

• Gross profit was BRL 384.3 million (22.9% margin), nearly flat year-over-year.

• Net financial result improved to BRL 109.3 million, reversing the negative impact from Q4 2024 due to currency effects.

• Domestic revenue declined 23.7% year-over-year, impacted by market seasonality and lighter product mix.

• Earnings per share for Q1 2025 was BRL 0.216, down from BRL 0.325 in Q1 2024.

• Cash and equivalents at quarter-end were BRL 1,763.8 million, down from BRL 2,098.6 million at year-end 2024.

Outlook and guidance

• Management expects an improved sales mix and higher value-added vehicle deliveries in Q2 and beyond, supporting margin recovery.

• International operations, especially Australia, Argentina, and Mexico, have strong order books and are expected to sustain results throughout 2025.

• Market recovery is expected in the second half of 2025, with a shift to heavier models and a healthy order book.

• Path to School (Caminho da Escola) program expected to drive procurement of at least 5,000 vehicles annually, with timing aligned to previous expectations.

• Profitability anticipated to improve as product mix shifts toward heavier, higher-margin vehicles.