Marcopolo (POMO4) Q1 2025 earnings summary

Executive summary

• Net revenue grew 1.3% year-over-year to BRL 1,677.4 million in Q1 2025, driven by strong international operations and exports, while domestic revenue declined.

• Net income was BRL 243.1 million (14.5% margin), down 23.3% year-over-year, impacted by a less favorable sales mix and seasonality.

• EBITDA was BRL 262.0 million (15.6% margin), down 16.9% year-over-year, mainly due to lower operating leverage in Brazil, partially offset by strong international performance.

• International operations and exports showed significant growth, with overseas revenue up 68.0% and exports from Brazil up 86.3% year-over-year.

Financial highlights

• Gross profit was BRL 384.3 million (22.9% margin), nearly flat year-over-year.

• Net financial result improved to BRL 109.3 million, reversing prior negative FX impacts.

• Earnings per share for Q1 2025 was BRL 0.216, down 33.6% year-over-year.

• Cash and equivalents at quarter-end were BRL 1,763.8 million, down from BRL 2,098.6 million at year-end 2024.

• Investments in fixed assets totaled BRL 67.5 million.

Outlook and guidance

• Management expects an improved sales mix and higher volumes in Q2 2025, with greater exposure to higher value-added and heavier vehicles.

• International operations, especially in Australia, Argentina, Mexico, South Africa, and China, are projected to sustain strong performance.

• Caminho da Escola program is expected to drive procurement of at least 5,000 vehicles annually, with new bidding anticipated between late 2025 and early 2026.

• Profitability anticipated to improve as product mix shifts to heavier vehicles and operational leverage increases.