Randoncorp (RAPT4) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$ 3.44 billion in 3Q25, up 9.9% year-over-year, driven by international sales, aftermarket resilience, and recent acquisitions, despite a challenging macroeconomic environment and lower domestic demand.

• Adjusted EBITDA was R$ 479.8 million (13.9% margin), up 1.0% year-over-year, reflecting cost control and structural adjustments, but pressured by higher financial expenses and ramp-up costs.

• Net income dropped 81% year-over-year to R$ 23.1 million, with margin at 0.7%, impacted by lower volumes, higher interest rates, and non-recurring expenses.

• Profitability recovery was achieved through strict cost discipline, structural adjustments, and working capital optimization.

• Leadership transition completed: Daniel Randon became CEO and Chairman as of September 1, 2025.

Financial highlights

• Gross profit totaled R$ 905.8 million, with a stable margin of 26.3% year-over-year, supported by operational efficiencies and cost negotiations.

• Adjusted EBITDA margin improved 2.9 p.p. sequentially from 2Q25, but fell 1.2 p.p. year-over-year.

• ROIC for the last 12 months was 8.7%, down 79 bps year-over-year, due to increased invested capital and extraordinary expenses.

• Net leverage (ex-Randon Bank) decreased to 3.40x from 3.88x in 2Q25, reflecting capital market fundraising and working capital reduction.

• Free cash flow improved, supported by lower investments and significant working capital reduction.

Outlook and guidance

• Guidance for 2025: Net revenue R$ 12–14 billion, EBITDA margin 12–14%, investments R$ 400–460 million.

• Expectation of continued resilience in the aftermarket and international segments, with ongoing macroeconomic and geopolitical uncertainties.

• Ongoing focus on cost control, capital structure optimization, and expansion into resilient geographies.