Technos (TECN3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$86.7M in 1Q25, up 26.1% year-over-year, driven by higher sales volume and average price increases.

• Gross revenue grew 28.3% to R$101.7M.

• Adjusted EBITDA rose 22.0% to R$12.0M, marking the 18th consecutive quarter of growth.

• Net income declined 23.6% to R$4.5M, mainly due to a temporary, non-cash exchange rate hedge impact.

• Interim dividends of R$15.0M were paid in January 2025, up 47% from the prior year; share buybacks totaled R$12.2M.

Financial highlights

• Gross profit increased 26.8% to R$46.3M, with gross margin stable at 53.4%.

• SG&A expenses rose 15.7% to R$36.9M, mainly from higher sales-related costs and marketing investments.

• Selling expenses increased 22.3% to R$26.8M; administrative expenses were stable at R$10.1M.

• Working capital increased to R$278.0M in 1Q25 from R$216.4M in 1Q24; days in working capital rose by 19 days to 345.

• Net financial result dropped to R$0.2M from R$5.1M, impacted by exchange rate volatility.

Segment performance

• Sales volume reached 487,400 units in 1Q25, up from 391,000 in 1Q24.

• Average sales price increased to R$209 in 1Q25 from R$202.8 in 1Q24.