Dexxos Participações (DEXP3) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$603.2 million in 1Q25, up 55.5% year-over-year and 23.2% sequentially from 4Q24, driven by strong performance in both chemical and steel segments.

• Adjusted EBITDA was R$88.2 million, a 13.6% increase year-over-year and 62.2% higher than 4Q24, with a margin of 14.6%.

• Adjusted net income totaled R$52.6 million, up 30.1% year-over-year and 46.6% sequentially, with an 8.7% margin.

• Dividend distribution of R$57 million related to FY2024, with R$40 million to be paid in May 2025; R$8 million allocated to share buybacks.

• Financial leverage remained low at 0.1x net debt/EBITDA LTM.

Financial highlights

• Gross profit was R$106.7 million, up 5.8% year-over-year and 42.8% sequentially; gross margin at 17.7%.

• Adjusted EBITDA margin was 14.6%, down 5.4 p.p. year-over-year but up 3.5 p.p. sequentially.

• Net debt stood at R$38.2 million, with leverage (Net Debt/EBITDA LTM) at 0.1x.

• Average debt cost at 9.6% p.a. with an average maturity of 5.3 years; 77.3% of debt is long-term.

• Cash and cash equivalents at R$278 million at quarter-end.

Outlook and guidance

• Continued focus on expanding sales volumes, portfolio diversification, and maintaining operational efficiency in both segments.

• Ongoing investments in capacity expansion, innovation, and ESG initiatives, including water reuse and tree planting.