EcoRodovias Infraestrutura e Logística (ECOR3) Q2 2025 earnings summary

Executive summary

• Comparable traffic increased by 3.3% in Q2 and 4.6% in H1 2025, mainly driven by heavy vehicles and new toll collections, outperforming the ABCR index.

• Adjusted net revenue reached R$1,818.9 million in Q2 and R$3,487.7 million in H1 2025, up 17.1% and 13.4% YoY, with strong operational efficiency and digital transformation.

• Adjusted EBITDA was R$1,363.2 million in Q2 and R$2,618.2 million in H1, with margins above 74%; net income was R$203.9 million in Q2 and R$350.6 million in H1, impacted by higher depreciation and financial expenses.

• Investments totaled R$2.1 billion in H1, focused on expansion, innovation, and operational safety, with major capex allocated to highway expansion and improvements.

• Dividend payment of R$215 million approved for August 29, 2025.

Financial highlights

• Adjusted EBITDA margin reached 74.9% in Q2 and 75.1% in H1 2025, with highway concessions at 75.8% and 75.9% respectively.

• Net debt/adjusted EBITDA was 3.9x in June 2025, up from 3.3x in June 2024, mainly due to new debenture issuances.

• Cash costs as a percentage of adjusted net revenue dropped to 25% in Q2, down 2.5 p.p. from 2024 and 10.3 p.p. from 2022.

• Net income: R$203.9 million in Q2 2025, R$350.6 million in H1 2025.

• Capex: R$1,171.9 million in Q2 2025 (+14.5% YoY); R$2,115.4 million in H1 2025 (+15.7% YoY).

Outlook and guidance

• Traffic growth for 2025 is expected to end near 4%, with a slower pace in H2 due to a strong prior-year base.

• CapEx is targeted at close to R$5 billion for 2025, with possible slight underperformance due to timing and weather.

• EBITDA margin is expected to reach 80% or higher in 2–3 years, driven by project maturity, tariff adjustments, and efficiency.

• Ongoing investments in capacity expansion and modernization, with R$38.5 billion in contractual capex commitments as of June 2025.

• Management expects continued strong cash generation and has planned debt renegotiations and payment term extensions to support liquidity.