EcoRodovias Infraestrutura e Logística (ECOR3) Q1 2025 earnings summary

Executive summary

• Consolidated traffic increased 7% in Q1 2025, led by heavy vehicles and new toll collections, reflecting strong operational performance and portfolio quality.

• Adjusted EBITDA rose 15.3% to R$1.3 billion, with margin improving to 75.2%, driven by cost discipline and efficiency initiatives.

• Net income attributable to controlling shareholders was R$146.7 million, down 36.6% year-over-year, impacted by higher depreciation, financial expenses, and expansion investments.

• Investments totaled R$943.5 million, focused on road expansions, infrastructure enhancements, and modernization.

• Major rebranding consolidated all concessionaires under the Ecovias name, with sustainability milestones including B3's Corporate Sustainability Index and Brazil's first 100% zero waste highway.

Financial highlights

• Adjusted net revenue increased 9.7% year-over-year to R$1,668.8 million, driven by traffic, tariff adjustments, and new tolls.

• Cash costs to adjusted net revenue ratio improved to 24.9%, down 2.6 percentage points year-over-year.

• Adjusted EBITDA margin for highway concessions reached 76.1% in the quarter.

• Gross debt rose to R$23,020.7 million (+14.9% vs Dec 2024); net debt reached R$18,950.9 million (+18.5%).

• Net income declined 36.6% year-over-year to R$146.7 million, mainly due to higher depreciation, financial expenses, and taxes.

Outlook and guidance

• Traffic growth for 2025 is projected at 4%, with 2026 expected at 1.5%-1.8%, in line with GDP forecasts.

• EBITDA margin is expected to be sustainable at current levels (75%), with potential for slight increases as new assets contribute.

• Focus remains on executing CapEx for recently acquired concessions and fulfilling contractual obligations.

• Ongoing capital structure optimization and liability management, with bridge loan refinancing planned for 3Q25.

• No material impact from new accounting standards adopted in 2025.