Kepler Weber (KEPL3) Q2 2025 earnings summary

Executive summary

• Net revenue declined 5.1% year-over-year to R$311.1 million in 2Q25, but operational resilience was shown by a 4% increase in shipment volume, the highest in a decade, and strong performance in Agroindústrias (+9.2%) and Reposição & Serviços (+8.4%).

• June accounted for 56% of the quarter's EBITDA, signaling a recovery in sales and deliveries.

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

• The company maintained a robust contracted backlog, up 13.8% year-over-year, with closed portfolio orders for the first half 40% higher year-over-year.

• Diversification, disciplined cost management, and efficient execution underpin consistent results amid challenging scenarios.

Financial highlights

• Net revenue: R$311.1 million in 2Q25 (-5.1% YoY); R$668.3 million in 1H25 (-5.6% YoY), with EBITDA of R$37.9 million in 2Q25 (12.2% margin) and R$90.8 million in 1H25 (13.6% margin).

• Net income: R$14.4 million in 2Q25 (4.6% margin, -61.1% YoY); R$39.9 million in 1H25 (6.0% margin, -55.2% YoY).

• ROIC was 24.5% in 2Q25, down 4.3 p.p. sequentially, but remains above sector averages.

• Net cash position of R$34.7 million at quarter-end, with cash and equivalents of R$358.2 million after R$70 million in dividends paid.

• EBITDA and net margins declined year-over-year, mainly due to price pressures, higher costs, and macroeconomic headwinds.

Outlook and guidance

• Management expects gradual improvement and operational acceleration in 2H25, supported by a robust contracted backlog and ongoing strategic initiatives.

• Record harvests and the 2025/2026 Harvest Plan are expected to increase storage demand and support new contracts.

• Gradual margin recovery is anticipated in 2H25 and into 2026, driven by cost dilution and improved revenue mix.