Orizon Valorização de Resíduos (ORVR3) Q4 2025 earnings summary

Executive summary

• Achieved net revenue of R$1.05 billion in 2025, up 16.3% year-over-year, and EBITDA of R$504 million, up 15.4%, driven by waste operations, asset maturation, and operational efficiency; carbon credit sales and new biomethane plants set the stage for strong 2026 results.

• Fourth quarter results accelerated, with net revenue up 14.8% and EBITDA up 38.0% year-over-year, and EBITDA margin expanding by 8.5 p.p.

• Strategic acquisitions, including Vital Engenharia Ambiental and Presidente Prudente landfill, expanded geographic footprint and operational base, with Vital integration expected to close between Q2 and Q3 2026.

• Carbon credit sales resumed with R$35.5 million sold in 2025, establishing a recurring revenue stream.

• Presented audited financial statements for 2025 under Brazilian GAAP and IFRS, with significant expansion through acquisitions and new energy projects.

Financial highlights

• Net revenue for 2025: R$1.05 billion (+16.3% YoY); EBITDA: R$504 million (+15.4% YoY); adjusted net income: R$108 million (+45.1% YoY); 4Q25 EBITDA: R$134 million (+38% YoY).

• Gross margin improved to 62.7% in 4Q25 from 60.9% in 4Q24.

• CAPEX in 4Q25 totaled R$155.3 million, mainly for biogas, biomethane, and plant upgrades.

• Net debt/EBITDA ratio improved to 2.40 at year-end 2025.

• Cash and cash equivalents rose to R$851.3 million from R$493.3 million year-over-year.

Outlook and guidance

• Expect strong results in 2026 from ramp-up of biomethane plants and integration of Vital, with further landfill acquisitions anticipated.

• Ongoing investments in biogas valorization, biomethane expansion, and circular economy initiatives.

• Recurring carbon credit sales projected for every quarter in 2026, with potential upside if the regulated market is established.

• Barueri Energia waste-to-energy plant expected to start operations in 2027, with 20-year energy contracts secured.

• Capital structure positioned to support accelerated growth.