Marcopolo (POMO4) Q2 2025 earnings summary

Executive summary

• Net revenue in Q2 2025 rose 17.8% year-over-year to R$2,305.1 million, driven by strong international operations and export growth, despite a 5% drop in total production volume.

• Net income increased 28% year-over-year to R$321.1 million, with a net margin of 13.9% and return on invested capital at 26.1%.

• Maintained leadership in the Brazilian bus market and continued global expansion, with a healthy backlog and a shift toward higher-value coach buses.

• Production mix shifted toward heavier, higher-margin vehicles, with coach buses representing over 53% of revenue and market share rising to 54%.

• International operations and exports showed robust performance, offsetting domestic market softness.

Financial highlights

• Q2 2025 total revenue reached R$2,305.1 million, up from R$1,956.7 million in Q2 2024; gross profit was R$593.2 million (margin 25.7%), EBITDA R$398.3 million (margin 17.3%).

• Net margin improved to 13.9% from 12.8% in Q2 2024; earnings per share for Q2 2025 were R$0.285, up 28.3% year-over-year.

• Net financial result turned positive at R$42.7 million, compared to a negative R$23.9 million in Q2 2024.

• Net financial debt of the industrial segment at 0.1x LTM EBITDA, with cash and equivalents at R$1,954.7 million.

• Investments in fixed assets totaled R$65.6 million in Q2 2025.

Outlook and guidance

• Management expects H2 2025 to benefit from positive seasonality, a heavier sales mix, and stabilization of volumes at slightly higher levels than H1 2025.

• Order backlog supports sequential volume growth and new electric vehicle deliveries in H2 2025.

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

• New tender for the Caminho da Escola program expected by year-end, supporting micros and Volares segment.

• Strategic focus on operational efficiency, automation, and lean manufacturing to sustain margin improvements.