Diagnósticos da América (DASA3) Q2 2025 earnings summary

Executive summary

• Completed joint venture with Amil, forming Rede Américas, one of Brazil's largest hospital groups, and refocused core business on diagnostics and operational excellence.

• Leadership in diagnostics in Brazil and Argentina, serving 23 million patients and performing over 400 million exams annually.

• New leadership and organizational structure implemented, reducing SG&A expenses and improving efficiency through digitization and process optimization.

• Significant progress in digital transformation, enhancing patient and physician experience.

• Ended the quarter with the lowest leverage since 2021, reflecting disciplined cash management and resource allocation.

Financial highlights

• Consolidated gross revenue for 2Q25 was R$2.7 billion, down 37% year-over-year due to deconsolidation of JV hospitals; Diagnostics revenue grew 6% while Hospitals and Oncology Northeast declined 3%.

• Gross margin expanded by 0.9 p.p. to 29.7%; consolidated EBITDA rose 10% to R$738 million, with EBITDA margin up to 29.9%.

• Net financial debt after acquisitions payable and advances on receivables dropped to R$7.3 billion, with leverage at 2.82x EBITDA, down from 4.24x a year earlier.

• Operating cash generation was R$44 million, reflecting reduced advances on receivables and profit sharing payments.

• Net result was a loss of R$173 million, impacted by non-recurring items and income tax effects.

Outlook and guidance

• Focus on diagnostics and operational efficiency, with ongoing digital transformation and cost discipline to support margin improvement and financial competitiveness.

• Continued prioritization of high-return investment projects and maintenance of strategic assets.

• Rede Américas integration expected to yield synergies and operational improvements.