Romi (ROMI3) Q3 2025 earnings summary

Executive summary

• Net operating revenue reached R$349.3 million in 3Q25, up 31.9% year-over-year, with adjusted EBITDA rising 60.8% to R$38.0 million, reflecting operational efficiency and business diversification.

• Order backlog grew 18% year-over-year to R$895.3 million, driven by strong B+W performance and machinery rental growth.

• B+W Machinery segment delivered net revenue of R$99.6 million (+506.2% YoY), with order intake up 272.4% and backlog at R$512.6 million (+35.2% YoY).

• Diversification into machinery rental and fintech (PRODZ) contributed significantly to results.

• The company established a Sustainability Committee and paid tribute to Dr. Romeu Romi, who passed away in August 2025.

Financial highlights

• Gross margin for 3Q25 was 26.5%, down 3.4 p.p. year-over-year; adjusted EBITDA margin improved to 10.9% (from 8.9% in 3Q24).

• Adjusted net income for 3Q25 was R$27.4 million, with net margin rising to 7.9% (from 5.1% in 3Q24).

• Foreign sales accounted for 34% of total sales in 9M25, up from 25% in 9M24, with a 142.4% increase in reais.

• Investments in 3Q25 totaled R$47.4 million, mainly for the machine rental business.

• BRL 16.8 million was distributed as interest on capital during the quarter.

Outlook and guidance

• Management expects continued challenges due to high interest rates, low business confidence, and macroeconomic headwinds, but remains focused on innovation, digitalization, and team development.

• B+W's strong backlog extends into 2027, supporting future revenue visibility.

• Expects demand recovery in the Castings and Machining unit, especially in agriculture, in the second half.

• Will continue investing in new product generations and Industry 4.0 technologies.