Motiva Infraestrutura de Mobilidade (MOTV3) Q1 2025 earnings summary

Executive summary

• Rebranded from CCR to Motiva Infraestrutura de Mobilidade S.A., reflecting a strategic transformation and new business profile.

• Delivered strong 1Q25 results, with adjusted net revenue up 7.2%, adjusted EBITDA up 14%, and adjusted net income up 20.2% year-over-year, driven by portfolio optimization and operational improvements.

• Portfolio optimization included signing new concessions (Rota Sorocabana, PR Vias), and terminating underperforming assets (Barcas, MS Via/ViaOeste), improving profitability.

• Advanced efficiency agenda with significant cost reductions, technology investments, and generative AI initiatives.

• Approved and distributed BRL 320 million in additional dividends for 2024, maintaining a 50% payout ratio.

Financial highlights

• Adjusted EBITDA rose 14% year-over-year to BRL 2.4 billion, with a 3.8 p.p. margin expansion to 63.2%.

• Adjusted net income increased 20.2% year-over-year to BRL 539 million.

• OPEX to net revenue ratio improved to 40.3% (LTM) and 36% for Q1 2025.

• Net debt increased 29% year-over-year, reaching up to R$31.2 billion, mainly due to investments in new concessions and debt payments.

• Leverage (Net Debt/EBITDA) at 3.6x as of 1Q25, up from 3.1x in 4Q24.

Outlook and guidance

• Targeting OPEX to net revenue ratio of 38% by 2026, with expectations to approach this level by year-end 2025.

• CapEx expected to accelerate in subsequent quarters to meet the annual target, after a slower Q1 execution.

• Focus on operational efficiency, portfolio optimization, digital transformation, and leadership in sustainability through 2035.

• Gradual EBITDA contribution from new concessions expected to offset increased leverage.