Diagnósticos da América (DASA3) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter EBITDA of R$708 million, up 11% year-over-year, with margin expansion and the best net result since 2022, driven by operational improvements and strategic focus on core businesses.

• Completed the joint venture with Amil in April 2025, forming Rede Américas, one of Brazil's largest independent hospital groups, and deconsolidated BRL 3.5 billion in net debt.

• Transitioned to a diagnostics-focused company, optimizing hospital and diagnostic operations, and maintaining high NPS scores.

• Net loss improved to R$111 million from R$176 million in 1Q24, mainly due to EBITDA expansion and operational excellence.

• Sustained positive operating cash generation and reduced financial leverage through disciplined working capital management and focused investments.

Financial highlights

• Consolidated gross revenue reached R$4.2 billion, up 4% year-over-year; net revenue was R$3.8 billion, up 3%.

• Adjusted gross profit rose 8% to R$1.2 billion, with adjusted gross margin improving up to 31.8%.

• EBITDA increased 11% to R$708 million, with EBITDA margin up 1.4 p.p. to 18.5%.

• Investments totaled R$69 million, up from R$53 million in 1Q24, focused on maintenance, expansion, and technology.

• Net financial expense was R$475 million, stable year-over-year.

Outlook and guidance

• Management is optimistic about further margin expansion and operational improvements, supported by the new structure and identified synergies from the joint venture.

• Focus remains on operational efficiency, capital discipline, and long-term value creation, with continued execution of the operational excellence program and integration of the Amil joint venture.

• B2C and premium segments, as well as B2B opportunities in lab-to-lab, hospital diagnostics, and public markets, are expected to drive growth.