Intelbras (INTB3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$1,246.4 million in Q2 2025, up 35.3% sequentially and 5.1% year-over-year, marking a record for the second quarter after ERP migration normalization.

• Net income was R$136.3 million, a 15.9% increase year-over-year and over 120% higher than Q1 2025, with a net margin of 10.9%.

• EBITDA was R$154.4 million, up 90.2% from Q1 2025, with a margin of 12.4%, reflecting normalized operations post-ERP migration.

• Operational bottlenecks from the ERP migration in Q1 2025 were resolved, restoring efficiency and reducing backlog.

• Corporate structure was reorganized, integrating market intelligence, channel management, and marketing to enhance agility and customer experience.

Financial highlights

• Gross profit was R$365.7 million, with a gross margin of 29.3%, stable year-over-year despite adverse PVA impacts.

• Operating expenses increased 0.8% year-over-year, with selling expenses up 20.3% sequentially due to higher commercial activity.

• Cash and cash equivalents increased by R$177.7 million during the quarter, ending at R$825.6 million.

• Capex for 1H25 was R$59 million, down 44.3% from 1H24, reflecting lower expansion needs.

• Inventory days reduced to 150, reflecting improved inventory management.

Outlook and guidance

• Security segment expects continued growth, leveraging normalized inventories and strong market position.

• ICT segment faces a challenging environment, aiming to exceed last year's revenue despite fierce competition and margin pressure.

• Energy segment anticipates ongoing revenue pressure but expects growth in UPS and vehicle charger lines.

• Focus remains on improving working capital and ROIC, with further cash generation expected in 2H25.

• Second half of the year requires caution regarding revenue growth, especially in the ICT segment.