Orizon Valorização de Resíduos (ORVR3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$281.1 million in Q3 2025, up 12.8% year-over-year, with EBITDA at R$130.8 million and adjusted net income at R$41.9 million, reflecting strong recurring profitability despite higher financial expenses from CapEx investments.

• Waste volume increased 3% year-over-year, with average gate fee price rising 9.4% and price increases outpacing inflation (IPCA +4 p.p.), driven by asset maturation and client mix.

• Recurring carbon credit sales generated R$14 million in revenue, with high-profile clients such as Google and Volkswagen enhancing international reputation.

• Biomethane plant in Jaboatão dos Guararapes began operations after ANP authorization, with Paulínia plant nearing completion and expected to start gas injection in early 2026.

• Acquisition of Oeste Paulista Ecopark expands geographic reach and biomethane development potential, reinforcing growth and diversification.

Financial highlights

• Net revenue grew 12.8% year-over-year to R$281.1 million, with recurring growth even after adjusting for lower carbon credit sales compared to Q3 2024.

• Gross profit for Q3 2025 was R$175.9 million, with a gross margin of 62.6%, down from 64.1% in Q3 2024 due to a lower proportion of high-margin carbon credit sales.

• EBITDA was R$130.8 million, down 1.2% year-over-year but up 4% sequentially; adjusted net income rose 56.5% sequentially, excluding a R$14.5 million non-recurring debenture prepayment.

• CapEx for the quarter was R$142.7 million, focused on energy transition, circular economy, and expansion projects, with a reduction from the previous quarter as the Barueri project progressed.

• Net debt/EBITDA improved to 2.20x from 2.71x in Q3 2024, with net debt at R$1.02 billion and average debt maturity extended to over 6.5 years.

Outlook and guidance

• Continued organic growth expected through price and volume increases, with contracted price hikes above inflation set to impact Q4 2025 and Q1 2026.

• Young Ecoparks and new biomethane plants are expected to drive higher volume growth, with significant contributions anticipated in Q4 and Q1 next year.

• Expansion of carbon credit portfolio and recurring sales projected, supported by growing demand and new project registrations.

• Additional M&A activity and new Ecopark acquisitions are anticipated in Q4 and Q1 2026, driving operational synergies and strategic growth.

• Continued debt extension and cost of capital reduction to support increased investment capacity.