JSL (JSLG3) Q2 2025 earnings summary

Executive summary

• Gross revenue reached R$2.8 billion in 2Q25, up as much as 12.5% year-over-year, with net revenue at R$2.4 billion, up 11.2%, driven by new contracts and sector diversification.

• Adjusted EBITDA rose 23.5% year-over-year to R$492 million, with margin recovery to 21.6%, reflecting cost reduction and contract repricing.

• Adjusted net profit was R$36.3 million, up 10% year-over-year; reported net profit was R$21 million, impacted by higher financial expenses due to CDI rates.

• R$1.5 billion in new contracts signed in 2Q25, with 62% adopting the asset-light model, reducing net CAPEX to R$18 million and supporting future growth.

• Cash flow after gross investments was R$295 million, up 22% year-over-year, supporting deleveraging and liquidity of R$1.9 billion, covering short-term debt 2.1 times.

Financial highlights

• Net revenue from services grew up to 11% year-over-year to R$2.27 billion, led by new contracts in pulp & paper, retail, food & beverage, and automotive.

• Adjusted EBIT increased 15% year-over-year to R$310.2 million; adjusted EBITDA margin improved by 2.4 p.p. to 21.6%.

• Asset sales net revenue rose 55% year-over-year to R$107.5 million, with margin recovery despite ongoing pressure from pickup truck depreciation.

• E-commerce revenue grew 41% year-over-year; pulp and paper up 24%, automotive up 12%.

• Cash generated after growth CAPEX was R$300 million, 20% higher than Q1 2025.

Outlook and guidance

• Management expects continued margin improvement and profitability as new contracts ramp up and cost initiatives take effect.

• Asset-light strategy and capital discipline are expected to further enhance ROIC and cash generation.

• JSL Scale Program's main benefits anticipated in H2 2025, supporting further margin and efficiency gains.

• Optimism for continued strong contract wins and asset sales in H2 2025.

• CapEx expected to remain low or slightly higher, aligned with the asset-light strategy.