Fras-le (FRAS3) Q3 2025 earnings summary

Executive summary

• Achieved net revenue of R$ 4.1 billion in 9M25, up 43.7% year-over-year, with strong international and aftermarket growth, supported by the Dacomsa acquisition.

• Adjusted EBITDA margin reached 18.5% for 9M25, with EBITDA of R$ 761.6 million, up 48.8% year-over-year.

• Net profit for Q3 2025 was R$ 107.6 million, a 20.8% increase over Q3 2024, with a net margin of 7.6%.

• Corporate governance strengthened with new CEO and President appointed in September 2025.

• Achieved TISAX certification for information security at Alabama (US) and Pinghu (China) sites.

Financial highlights

• Q3 2025 net revenue: R$ 1,414.1 million (+36.4% YoY); 9M25 net revenue: R$ 4,105.9 million (+43.7% YoY).

• Domestic revenue grew 10.5% in 9M25; external revenue in USD rose 80.9% in 9M25.

• Q3 2025 EBITDA: R$ 271.8 million (+42.2% YoY); adjusted EBITDA margin: 19.1%.

• Investments in 9M25 totaled R$ 123 million, on track for R$ 170–210 million guidance.

• Net debt at R$ 1,678.2 million as of September 2025.

Outlook and guidance

• 2025 net revenue guidance: R$ 5.4–5.8 billion; international market guidance: US$ 500–540 million.

• EBITDA margin guidance: 17.5%–20.5%.

• Investment guidance for 2025: R$ 170–210 million.

• Confident in resuming organic growth in 2026, supported by Dacomsa integration and heavy vehicle market recovery.

• Aftermarket remains resilient, supported by aging fleet and increased passenger transport activity.