Marcopolo (POMO4) Q3 2025 earnings summary

Executive summary

• Net revenue grew 8.2% year-over-year to BRL 2,505.4 million in Q3 2025, driven by strong international operations and exports, offsetting a domestic market slowdown.

• Net income reached BRL 329.6 million, down 1.8% year-over-year, with ROIC stable at 25%.

• International operations and exports offset an 8% drop in domestic production, with external markets accounting for about 50% of net revenue.

• International revenue grew 51.3% and exports from Brazil rose 43.1% year-over-year.

• Total production was stable at 4,127 units, with a 5.1% drop in Brazil offset by 26.2% growth abroad.

Financial highlights

• Consolidated net revenue was BRL 2.5 billion in Q3 2025, up 8.2% year-over-year.

• Gross profit reached BRL 668.7 million, with a record gross margin of 26.7%.

• EBITDA was BRL 419.8 million (16.8% margin), impacted by non-recurring losses; adjusted EBITDA was BRL 491.1 million (19.6% margin), up 14.3%.

• Net profit was BRL 329.6 million (13.2% margin), slightly down from Q3 2024.

• Cash and equivalents rose to BRL 1,993.9 million at quarter-end.

Outlook and guidance

• Order book for Q4 2025 remains strong, especially for coach and city buses, with expectations of maintaining production volumes.

• International operations, especially in Australia, Argentina, Chile, and Peru, expected to remain strong into 2026.

• Certification for Paradiso models in Europe underway, with first deliveries expected in late 2026 or early 2027.

• Refrota program anticipated to boost city bus demand in early 2026.

• High interest rates in Brazil continue to impact fleet renewal; improvement expected as rates decline.