Tegma Gestão Logística (TGMA3) Q1 2025 earnings summary

Executive summary

• Net revenue in 1Q25 reached R$440 million, up 13% year-over-year, driven by growth in both Automotive and Integrated Logistics divisions, with higher vehicle volumes and increased logistics services revenue.

• Net income rose 17% year-over-year to R$44 million, with net margin improving to 9.9%.

• EBITDA margin improved to 15.6%, reflecting operational efficiency and expense control, despite M&A-related expenses.

• Free cash flow was R$92 million, supported by strong operational performance and a reduction in accounts receivable.

• Return on invested capital (ROIC) remained high at 39.6%, stable versus 4Q24.

Financial highlights

• Gross revenue totaled R$545.1 million, up 12.8% year-over-year; net revenue was R$440.4 million, up 13.2%.

• EBITDA grew 15% to R$265 million, with a margin of 15.6%.

• Earnings per share increased 16.6% to R$0.7.

• Net cash position at March 2025 was R$228 million, up from R$135 million in December 2024.

• CAPEX in 1Q25 was R$9.6 million, mainly for IT and storage capacity expansion.

Outlook and guidance

• Management expects continued growth in vehicle sales and logistics volumes, supported by positive economic indicators, but cautions that actual results may differ due to market and economic conditions.

• Dividend payout remains above the minimum policy, supporting capital retention for investments.

• Fitch reaffirmed the company’s rating at A (Bra) with a stable outlook in April 2025.