Kepler Weber (KEPL3) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw net revenue of R$311.1 million, with profitability at the lowest levels in 20 years, but performance aligned with internal estimates and strategic execution progress.

• Despite margin pressures, closed portfolio orders for H1 were 40% higher year-over-year, and shipment volume reached a decade high, supporting a positive outlook for H2 2025 and 2026.

• Argentina accounted for 30% of international sales, becoming a key market and driving portfolio diversification.

• Replacement and services segments expanded, and disciplined cost management kept G&A/SG&A costs below inflation.

• Diversification and efficient management underpinned consistent results amid challenging scenarios.

Financial highlights

• Q2 2025 net revenue: R$311.1 million; EBITDA: R$37.9 million (12.2% margin); net income: R$14.4 million (4.6% margin).

• H1 2025 net revenue: R$668.3 million; EBITDA: R$90.8 million (13.6% margin); net income: R$39.9 million (6.0% margin).

• EBITDA margin dropped from 19.3% to 12.2% year-over-year, mainly due to price pressures and macroeconomic headwinds.

• ROIC was 24.5% in Q2 2025, down 4.3 p.p. sequentially.

• Cash and cash equivalents stood at R$358.2 million at quarter-end, with a net cash position of R$34.7 million after R$70 million in dividends.

Outlook and guidance

• Management expects gradual margin recovery and operational acceleration in H2 2025, supported by a robust contracted backlog and sector tailwinds.

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

• Most of the portfolio is already contracted, with low execution risk and positive adjusted results and cash generation expected.