EcoRodovias Infraestrutura e Logística (ECOR3) Q2 2025 earnings summary

Executive summary

• Adjusted net revenue rose 17.1% in 2Q25 and 13.4% in 1H25, driven by higher traffic, toll adjustments, and new toll collections, especially from heavy vehicles and new concessions.

• Adjusted EBITDA grew 19.0% in 2Q25 and 17.2% in 1H25, with margins above 74%, while net income attributable to controlling shareholders was R$203.9 million in 2Q25 and R$350.6 million in 1H25, impacted by higher depreciation, amortization, and financial expenses.

• Capex totaled R$2.1 billion in 1H25, focused on highway expansion, innovation, and operational safety, with major investments in Ecovias Rio Minas, Noroeste Paulista, and Norte Minas.

• Dividend payment of R$215 million (or R$214.7 million) approved for August 2025.

• Ecovias 101 concession secured, extending the contract by 24 years to 2049 and enabling new investments.

Financial highlights

• Adjusted net revenue reached R$1,818.9 million in 2Q25 and R$3,487.7 million in 1H25.

• Adjusted EBITDA margin was 74.9% in 2Q25 and 75.1% in 1H25; highway concessions achieved margins of 75.8% and 75.9% respectively.

• Net income was R$203.9 million in 2Q25 and R$350.6 million in 1H25.

• Cash costs as a percentage of adjusted net revenue dropped to 25% in 2Q25 and 1H25, reflecting efficiency gains.

• Net debt/adjusted EBITDA was 3.9x at June 2025, with gross debt at R$22.9 billion and cash of R$3.2 billion.

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 commitments total R$38.5 billion, with ongoing investments in capacity expansion and modernization.

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

• Board approved R$2.0 billion in new debentures for refinancing and working capital.

• New toll tariff adjustments implemented in July 2025 across several concessions, based on IPCA inflation.