Compass Gas e Energia (PASS3) Q2 2025 earnings summary

Executive summary

• Net revenue for 2Q25 was R$4.34 billion, nearly flat or down 2% year-over-year; gross profit rose 18% to R$1.06 billion, with gross margin improving to 24% from 20% in 2Q24.

• EBITDA for 2Q25 was R$1.22 billion, down 12% from 2Q24; normalized EBITDA rose 16% on a recurring basis, driven by higher volumes and a favorable mix in Distribution.

• Net income for 2Q25 was R$353 million, a 41% decrease compared to 2Q24, reflecting non-recurring effects in the prior year and higher net debt service.

• Investments in 2Q25 totaled R$538 million, focused on expanding gas distribution and strategic projects like biomethane and B2B LNG.

• The company remains confident in its ability to continue as a going concern and has authorized the interim financial statements as of August 7, 2025.

Financial highlights

• Gross profit for 2Q25 was R$1.06 billion, up from R$891.6 million in 2Q24; gross margin improved to 24% in 2Q25 from 20% in 2Q24.

• EBITDA for 2Q25 was R$1.22 billion (-12% YoY); normalized EBITDA was R$1.28 billion (-7% YoY); net income was R$353 million (-41% YoY).

• Year-to-date (6M25): Net revenue R$8.54 billion (flat YoY); gross profit R$1.87 billion (+12% YoY); EBITDA R$2.51 billion (+11% YoY); net income R$773 million (-16% YoY).

• Operating cash flow for 6M25 was R$1.79 billion, up from R$1.68 billion in 6M24.

• Earnings per share for 2Q25 were R$0.44, compared to R$0.78 in 2Q24; 6M25 EPS was R$0.99, down from R$1.18 in 6M24.

Outlook and guidance

• Management expects ongoing growth in new connections and further development of the free gas market, with continued focus on expanding the gas distribution network and strategic projects including biomethane and B2B LNG.

• Management does not foresee material uncertainties regarding the company's ability to continue operating and remains confident in business continuity.

• The company will prospectively change its accounting policy for sectoral financial assets and liabilities following new regulatory guidance.