SIMPAR (SIMH3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$10.5 billion in Q2 2025, up 6% year-over-year, with EBITDA at a record R$3 billion, up 13%, and margin expanding to 28.4%.

• Adjusted net loss of R$36 million, impacted by higher interest expenses and increased net debt to support business expansion.

• Operational efficiency, cost reduction, and pricing discipline initiatives drove EBITDA per employee up 25% year-over-year.

• Strategic focus on capital allocation, deleveraging, and maximizing value from established business foundations.

• Service portfolio diversification and contract renegotiations supported sustainable revenue and margin improvements.

Financial highlights

• Net revenue: R$10.545 billion in Q2 2025, with R$2 billion from asset sales and R$8.5–8.6 billion from services.

• EBITDA: R$3 billion, 28.4% margin, up 13% year-over-year; EBIT: R$1.9 billion, 17.6% margin, up 6% year-over-year.

• Adjusted net income: -R$36 million, reflecting a 40% increase in base interest rates year-over-year.

• Productive ROIC improved to 13.8% from 10.8% year-over-year.

• Net CAPEX decreased 7.6–8% YoY to R$2.0 billion; EBITDA/Net CAPEX ratio improved to 2.2x.

Outlook and guidance

• Focus on organic growth, margin expansion, and deleveraging through asset monetization and operational efficiency.

• CapEx expected to remain low, with EBITDA now twice net CapEx on an annualized basis.

• VAMOS revised 2025 EBITDA guidance to R$3,500–3,900 million and net income to R$300–450 million; CS Infra expects 2026 EBITDA between R$180–250 million.

• CS Portus port operations to begin full capacity in September 2025, with strong demand and guidance for R$400 million EBITDA in 2026.

• Asset inventory of R$2.5–3 billion targeted for monetization within 12 months to improve liquidity and reduce leverage.