Romi (ROMI3) Q1 2025 earnings summary

Executive summary

• Order entry reached R$422.4 million, up 41.4% year-over-year, with strong performance in ROMI Machines and BW/B+W Machines units and a backlog of R$817.8 million, up 37.4% from 1Q24.

• Net operating revenue rose 31.0% year-over-year to R$273.1 million, with all business units contributing to growth.

• Significant growth in rental revenue (27.9%), now accounting for 25% of ROMI Machines revenue.

• Continued robust investments in technology, connectivity, AI, and workforce development to sustain competitive advantage.

• Participation in Plástico Brasil, launching new machine models and innovations.

Financial highlights

• Adjusted EBITDA was R$18.0 million, with a margin of 6.7% in 1Q25, down from 8.7% in 1Q24.

• Net income was R$10.1 million, a decrease of 43.9% year-over-year, with a net margin of 3.7%.

• Gross margin declined to 24.4% from 29.1% in 1Q24, mainly due to lower margins in BW/B+W and Cast and Machined Parts units.

• Foreign sales accounted for 36% of total sales, with Brazil representing 64%.

• Net cash position at the end of 1Q25 was negative R$106.4 million.

Outlook and guidance

• Positive outlook for the remainder of 2025, supported by a robust order backlog and ongoing recovery in key segments, especially agriculture.

• Focus on launching new machine generations and integrating advanced technologies for sustainable growth.

• Management notes forward-looking statements are subject to significant risks and uncertainties.