Marcopolo (POMO4) Q3 2025 earnings summary

Executive summary

• Net revenue in Q3 2025 grew 8.2% year-over-year to R$2,505.4 million, driven by strong export and international operations, offsetting a domestic market slowdown.

• Gross profit rose 15.9% to R$668.7 million, with margin improving to 26.7%.

• Net income reached R$329.6 million (13.2% margin), slightly down 1.8% year-over-year, impacted by non-recurring impairment at a Canadian affiliate.

• International operations delivered strong results, offsetting domestic market declines.

• Total production was stable at 4,127 units, with a 5.1% drop in Brazil offset by 26.2% growth abroad.

Financial highlights

• Consolidated net revenue was R$2,505.4 million in Q3 2025, up 8.2% year-over-year; gross profit increased 15.9% to R$668.7 million.

• Gross margin improved by 1.8 p.p. to 26.7%; EBITDA was R$419.8 million (16.8% margin), impacted by non-recurring impairment; adjusted EBITDA was R$491.1 million (19.6% margin).

• Net margin was 13.2%, down from 14.5% in Q3 2024.

• Earnings per share for Q3 2025 was R$0.292.

• Cash and equivalents at quarter-end were R$1,993.9 million.

Outlook and guidance

• Order book for Q4 2025 remains strong, especially for coach and city buses, with expectations of maintaining production volumes.

• International operations, especially in Australia, Argentina, Chile, and Peru, are expected to remain strong, with a robust backlog for 2026.

• Domestic market faces challenges from high financing costs, but city bus segment shows signs of recovery and may benefit from government programs.

• Certification for European sales expected by Q4 2026, with first deliveries in early 2027.

• New product launches and alternative propulsion technologies are expected to support future growth.