Intelbras (INTB3) Q1 2025 earnings summary

Executive summary

• Net revenue for 1Q25 was R$921.3 million, down 11.3% year-over-year, mainly due to ERP migration disruptions and lower Energy segment sales.

• EBITDA was R$81.2 million, a 51.4% decrease year-over-year, with margin at 8.8%.

• Net income totaled R$61.6 million, a 60% drop year-over-year, with a net margin of 6.7%.

• ERP migration caused significant operational disruptions, including production delays and inventory shortages, but stabilization and recovery were observed by April.

• ROIC (pre-tax) for the last four quarters was 13.8%, down 10.2 percentage points year-over-year.

Financial highlights

• Gross profit for 1Q25 was R$271.2 million, down 22.9% year-over-year, with a gross margin of 29.4%.

• EBITDA margin was 8.8%, down from 16.1% in 1Q24.

• One-off industrial idleness expense of R$15.7 million recognized due to ERP migration.

• Operating expenses decreased 6.8% sequentially, driven by lower administrative expenses and reduced profit-sharing provisions.

• Cash and cash equivalents at quarter-end were R$647.9 million, down from R$888.0 million at year-end 2024.

Outlook and guidance

• Management expects operational normalization and revenue recovery in 2Q25 as ERP stabilization continues and inventory levels recover.

• Security segment anticipated to lead revenue rebound as inventory rebuilds.

• Energy segment will prioritize profitability over revenue growth, focusing on microgeneration.

• Some lost sales from 1Q25 may be recovered in coming quarters, but part will require new commercial initiatives.

• Management maintains a positive long-term outlook, expecting to recover part of lost sales in coming quarters.