Randoncorp (RAPT4) Q2 2025 earnings summary

Executive summary

• Net revenue grew 10.5% year-over-year to R$3.3 billion in 2Q25, driven by international aftermarket expansion, despite a sharp drop in agribusiness sales.

• Adjusted EBITDA fell 15.5% to R$364.4 million (margin 11.0%), mainly due to lower fixed cost dilution and restructuring expenses.

• Net loss of R$34.9 million, reversing a profit of R$87.0 million in 2Q24, impacted by lower operating profit and higher financial expenses from increased indebtedness and high interest rates.

• Strategic actions included cost reductions, restructuring, capital market moves such as a private capital increase and a follow-on of subsidiary Frasle Mobility.

• Guidance for 2025 was revised: net revenue R$12–13.5 billion, EBITDA margin 12–14%, investments R$400–460 million, reflecting a more cautious outlook amid market headwinds.

Financial highlights

• Consolidated net revenue: R$3.3 billion in 2Q25 (+10.5% YoY); R$6.5 billion in 1H25 (+17.5% YoY).

• Adjusted EBITDA: R$364.4 million in 2Q25 (-15.5% YoY); margin 11.0% (-3.4 p.p. YoY).

• Net loss: R$34.9 million in 2Q25 (vs. profit of R$87 million in 2Q24); 1H25 net loss R$42.6 million.

• Financial result: negative R$212.9 million in 2Q25, mainly due to higher debt and interest rates.

• ROIC for the last 12 months was 8.0%, down 72 bps YoY.

Outlook and guidance

• 2025 guidance revised: net revenue R$12–13.5 billion, international revenue US$800–850 million, EBITDA margin 12–14%, investments R$400–460 million.

• Market recovery expected to be gradual, with continued focus on cost discipline, deleveraging, and capturing synergies from recent acquisitions.

• Second half of 2025 anticipated to remain challenging, especially in commercial vehicles and agribusiness segments.

• Guidance reflects a more conservative scenario, considering market contraction and higher costs.

• Focus on leverage reduction and integration of acquired companies.