Marcopolo (POMO4) Q4 2025 earnings summary

Executive summary

• Achieved record consolidated net revenue of R$9.06 billion in 2025, up 5.4% year-over-year, driven by exports and international operations, while domestic revenue declined 9.7%.

• International operations grew over 32%, with export revenue up 31.1%, offsetting domestic market weakness due to high financing costs.

• Net profit reached a record R$1.24 billion for 2025; gross profit and margin also set new highs.

• Fourth quarter 2025 net revenue was approximately R$2.57 billion, with coach buses leading and exports as a key highlight.

• Record dividend distribution in 2025, with a payout ratio of 94.9% and dividend yield of 15.7%.

Financial highlights

• Gross profit for 2025 was R$2.31 billion, gross margin 25.6%; Q4 2025 gross profit was R$668.1 million, margin 26.0%.

• EBITDA for 2025 was R$1.51 billion (16.6% margin), impacted by non-recurring losses; adjusted EBIT would have been R$1.669 billion.

• Q4 2025 EBITDA was R$426 million (16.6% margin), net profit R$341.7 million (13.3% margin).

• ROIC reached 24.1%, ROE at 30.7%.

• Net financial result turned positive at R$32.8 million in Q4 2025.

Outlook and guidance

• Expect recovery in coach bus deliveries in 2H 2026 as financing costs decrease; city bus and electric vehicle segments expected to grow.

• International operations, especially Australia and China, forecast to remain strong; cautious outlook for Argentina and Mexico due to local uncertainties.

• Lower interest rates in Brazil anticipated to support fleet renewal and market growth in 2H 2026.

• Seasonality will affect early 2026, but delivery pace is expected to increase from 2Q26.

• 2026 expected to be a year of operational efficiency gains rather than major growth.