Sequoia Logística e Transportes (SEQL3) Q2 2025 earnings summary

Executive summary

• Completed a comprehensive restructuring, including agreements with banks and debenture holders totaling R$754 million and homologation of an extrajudicial recovery plan with non-financial creditors of R$328 million.

• Focused on operational and financial recovery, with strategic repositioning toward banking card logistics and B2B services.

• Divested from unprofitable segments such as heavy e-commerce and indoor logistics, reduced workforce, and closed distribution centers to cut costs.

• Issued new shares and converted debt into equity to strengthen capitalization and reduce cash flow pressure.

• Flash Courier operations now represent 72% of consolidated net revenue in 1H25.

Financial highlights

• Net revenue for 1H25 was R$311.2 million, a 40.1% decrease compared to 1H24 pro-forma.

• Gross profit in 2Q25 reached R$13.9 million, up 17.8% year-over-year; gross margin improved to 8.8% from 4.8%.

• EBITDA improved to R$115.2 million from a negative R$31.3 million, driven by non-recurring gains and cost reductions.

• Net loss narrowed to R$20.2 million from R$240.1 million year-over-year.

• Achieved R$87.8 million in discounts from the extrajudicial recovery plan and R$87.6 million from PGFN tax settlements.

Outlook and guidance

• Focus remains on consolidating leadership in banking card logistics, stabilizing and growing B2B and Mega Sorter opportunities.

• Exploring alternatives for Mega Sorter asset to enhance cash generation.

• 13th debenture issuance aims to strengthen balance sheet and support operational recovery.