Rumo (RAIL3) Q3 2025 earnings summary

Executive summary

• Transported volume reached 23.4 billion RTK, up 8% year-over-year, led by strong Northern Operation performance and a 15% increase in Southern Operation, with growth in general cargo, hardwood pulp, bauxite, steel, and container operations.

• Market share in grain exports through Santos fell 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.

• Fixed costs and expenses per 1,000 RTK decreased by 12% year-over-year, with energy efficiency improving by 2%.

• Diversified cargo portfolio with consistent growth in fertilizers, pulp, sugar, bauxite, and higher value-added container products.

Financial highlights

• Net revenue increased 2% year-over-year to R$3,819 million in 3Q25, driven by higher volumes despite lower average prices.

• Adjusted EBITDA reached R$2,313 million, up 5% year-over-year, with a margin of 60.6%.

• Adjusted net income was R$733 million, broadly in line with the previous year; reported net profit fell 39% to R$416 million due to non-recurring impairment charges.

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

• Insurance recoveries and indemnification income of BRL 55 million supported results.

Outlook and guidance

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

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

• 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.

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