Rumo (RAIL3) Q3 2025 earnings summary

Executive summary

• Transported volume rose 8% year-over-year to 23.4 billion RTK, led by strong Northern Operation performance and growth in general cargo, pulp, bauxite, and liquid fuels.

• Market share in grain exports through Santos port declined 4 p.p. to 57%, and in Mato Grosso by 6 p.p. to 37%, due to increased competition and logistics flow redistribution.

• Adjusted pricing strategy mid-year led to a 7% decrease in tariffs for the quarter, focusing on system profitability.

• Container Operation volumes grew 6%, with higher value-added products and new terminal operations supporting growth.

• Diversified cargo portfolio and commercial repositioning supported revenue resilience.

Financial highlights

• Net revenue increased 2% year-over-year to R$3,819 million, driven by higher volumes despite lower average prices.

• Adjusted EBITDA reached R$2,323 million, up 5% year-over-year, with a margin of 60.6%.

• Adjusted net profit was R$733 million; reported net profit fell 39% to R$416 million due to non-recurring impairment charges.

• Net financial expense was R$837 million, reflecting higher net debt and interest rates.

• Capex totaled R$1,474 million, with significant investments in the Mato Grosso railway extension.

Outlook and guidance

• Soybean and corn production in Brazil is expected to grow in 2025/26, supporting continued high export volumes.

• Guidance for year-end depends on strong volume execution in December, with some uncertainty due to timing of export demand.

• Confident in meeting guidance, targeting close to the midpoint for volumes and mid-low point for EBITDA.

• Expansion projects, especially in Mato Grosso, are progressing as planned, supporting future volume growth.

• 2026 expected to start with higher volumes and similar pricing levels to late 2025, with potential for price recovery as the year progresses.