Kepler Weber (KEPL3) Q2 2025 earnings summary

Executive summary

• Net revenue for 2Q25 was R$311.1 million, down 5.1% year-over-year, with operational resilience shown by a 4% increase in shipment volume, the highest in a decade.

• EBITDA for 2Q25 was R$37.9 million (12.2% margin), down 40% year-over-year; June contributed 56% of the quarter's EBITDA, indicating a recovery in sales and deliveries.

• Net income for 2Q25 was R$14.4 million (4.6% margin), a 61.1% decrease year-over-year; 1H25 net income was R$39.9 million (6.0% margin), down 55.2% from 1H24.

• The contracted backlog grew 13.8% year-over-year, supporting future revenue generation and a positive outlook for 2H25 and 2026.

• Argentina became the second largest export destination in Replacement & Services, accounting for 30% of contracted international sales in 1H25.

Financial highlights

• Consolidated net revenue for 1H25 was R$668.3 million, down 5.6% year-over-year.

• EBITDA margin decreased to 12.2% in 2Q25 from 19.3% in 2Q24; 1H25 EBITDA margin was 13.6%.

• Net margin dropped to 4.6% in 2Q25 from 11.3% in 2Q24.

• Cash and cash equivalents stood at R$358.2 million at quarter-end; net cash position was R$34.7 million after R$70 million in dividends.

• ROIC was 24.5% in 2Q25, down 4.3 p.p. from 1Q25.

Outlook and guidance

• Management expects operational acceleration and gradual margin recovery in 2H25, supported by a robust contracted backlog and sector tailwinds.

• The 2025/2026 Harvest Plan increases funding for storage projects, expected to boost demand and new contracts.

• Focus remains on innovation, international expansion, and strengthening recurring revenue streams.