JSL (JSLG3) Q4 2025 earnings summary

Executive summary

• Net revenue grew 6.5% year-over-year to R$9.6–9.7 billion in 2025, with margin expansion and a focus on deleveraging and operational efficiency through strategic reorganization into Dedicated Services, Intralog, and Digital units.

• Adjusted EBITDA reached R$2.0 billion in 2025 (+16% YoY), with a margin of 20.5% (+1.8 p.p.), supported by price adjustments, asset-light strategy, and disciplined contract pricing.

• R$4.9–5.0 billion in new contracts were signed in 2025, with 71% from cross-selling and an average term of 70 months.

• Business reorganization and digital transformation initiatives, including proprietary TMS and loyalty programs, drove productivity and value creation.

• Asset-light strategy and operational efficiency programs, such as Escala JSL, generated R$270 million in savings and supported margin expansion.

Financial highlights

• Adjusted EBITDA: R$2.0 billion in 2025 (+16% YoY), margin 20.5% (+1.8 p.p.); 4Q25: R$505 million (+16% YoY), margin 20.6% (+3.2 p.p.).

• Adjusted net income: R$147 million in 2025, with Q4 net income at R$29.8–30 million, pressured by high interest rates.

• Free cash flow after growth reached R$392 million in 2025, with a yield of 20.9%.

• Net CAPEX fell 80% year-over-year to R$160 million in 2025, reflecting a shift to leasing.

• LTM ROIC running rate reached 14.8% in 4Q25.

Outlook and guidance

• Focus for 2026 is on productivity, profitability, and a return to historical growth patterns, with continued margin expansion from asset-light contracts.

• Deleveraging trend to persist, supported by strong cash generation and disciplined capital allocation.

• Intralog and Digital expected to drive higher growth rates, while Dedicated Services will grow at a slower pace due to its larger base.

• No formal guidance provided, but management targets a return to historical organic growth rates.