Tegma Gestão Logística (TGMA3) Q3 2025 earnings summary

Executive summary

• Net revenue in Q3 2025 rose 5% year-on-year to R$634 million, driven by higher average delivery distances, tariff adjustments, and growth in used vehicle logistics, while net income fell 5% to R$80 million with a net margin of 12.6%.

• Automotive Logistics Division net revenue grew 7% year-on-year, aided by increased average distance and tariff adjustments, but EBITDA margin declined due to higher taxes and costs.

• Integrated Logistics Division net revenue fell 18% year-on-year due to lower volumes and contract losses, with EBITDA margin dropping to 14%.

• GDL joint venture net revenue rose 9% year-on-year, but margins declined due to extraordinary rental cost increases.

• Interim dividends and interest on equity totaling R$63.9 million (80% payout) will be paid, with a dividend yield of 8.2% over the last 12 months.

Financial highlights

• EBITDA in Q3 2025 was R$116.8 million, margin at 18.4%, down 2.4 p.p. year-on-year due to margin declines and higher administrative expenses.

• Free cash flow in Q3 2025 was R$15 million, lower than Q3 2024 due to higher CapEx and advance land payment.

• Net cash position at end of September was R$160 million, reflecting strong liquidity.

• ROIC was 37.1% and ROE was 28.6% in Q3 2025, both down from the previous quarter.

• Net debt/EBITDA ratio not applicable due to net cash position.

Outlook and guidance

• New contracts with OMODA&JAECOO and strategic land acquisition in Bahia are expected to support future market share and revenue growth.

• Growth in the north and northeast regions is expected to continue in Q4, positively impacting margins.

• Toyota's production halt is expected to negatively affect volumes in the coming months.

• GDL will focus on diversification and new entrants to offset slower imported vehicle sales.