Kepler Weber (KEPL3) Q3 2025 earnings summary

Executive summary

• 3Q25 marked a consistent operational recovery, with net revenues of R$423.3 million, among the best third-quarter results in company history, despite a challenging macroeconomic environment and high interest rates. EBITDA margin reached 17.4%, representing 45% of the year-to-date result, and net income was R$51.6 million, with a 12.2% margin, confirming structural business evolution and resilience.

• Diversification in business segments, especially International Business and Ports and Terminals, offset domestic market challenges, with international sales (notably Argentina) up 30% year-over-year and 100% of international units sold featuring embedded technology.

• The company expanded its customer base by 13% in 3Q25, evidencing the strength of its diversified commercial strategy and strong customer satisfaction.

• Celebrated its 100th anniversary with market recognitions and awards, reinforcing its leadership and governance standards in agribusiness.

• Maintained strong cash generation, paid R$95 million in dividends over the last 12 months (payout ratio up to 103.8%), and continued investing in CapEx, including plant modernization and IT upgrades.

Financial highlights

• Net operating revenue in 3Q25 was R$423.3 million, down 3.6% year-over-year but up 36.1% sequentially from 2Q25; EBITDA was R$73.6 million (17.4% margin), and net income was R$51.6 million (12.2% margin), both showing sequential improvement.

• 9M25 net revenue totaled R$1.1 billion, down 4.8% year-over-year; 9M25 EBITDA was R$164.4 million (15.1% margin), and net income was R$91.5 million (8.4% margin), both down year-over-year.

• Gross margin in 3Q25 was 24.9%, down from 29.9% in 3Q24, with COGS at 75.1% of net revenue.

• Net cash position as of September 2025 was R$31.1 million, down from R$162.9 million a year earlier, mainly due to lower operating cash flow and dividend payments.

• CapEx for 9M25 was R$53.5 million, up 105% year-over-year, focused on modernization, new products, and IT.

Outlook and guidance

• Management expects stability and balanced margins in 4Q25, supported by operational maturity and a solid business model, with gradual recovery in Agribusiness and continued international expansion anticipated to support future growth.

• Order portfolio ended September slightly below 2024 but showed sequential improvement, with expectations to finish the year above 2024 levels and enter 2026 with higher business volume.

• Anticipates continued two-digit growth in farm and agribusiness segments, with a stronger rebound expected in 2026.