Tegma Gestão Logística (TGMA3) Q1 2025 earnings summary

Executive summary

• Net revenue in Q1 2025 reached BRL 440.4 million, up 13% year-on-year, driven by growth in both Automotive and Integrated Logistics divisions.

• Net income rose 17% year-on-year to BRL 44 million, with net margin improving to 9.9%.

• Vehicle production increased 8% in Q1 2025, with exports up nearly 39% due to BRL depreciation and strong demand from Argentina.

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

• The company operates in two main segments: Automotive Logistics and Integrated Logistics, with the former contributing the majority of revenue.

Financial highlights

• Gross revenue totaled BRL 545.1 million, up 12.8% year-on-year; net revenue was BRL 440.4 million, up 13.2%.

• EBITDA for Q1 2025 was BRL 61 million with a margin of 15.6%, up nearly 0.7 percentage points year-on-year.

• GDL net revenue grew 29% to BRL 67 million, with net income stable at BRL 13 million.

• Cash and cash equivalents increased to BRL 339.2 million from BRL 241.3 million at year-end 2024.

• Net cash from operating activities was BRL 110.3 million, up from BRL 84.4 million year-over-year.

Outlook and guidance

• Management expects continued growth in vehicle sales and logistics volumes, supported by positive economic indicators.

• Expectations for GDL in 2025 remain positive, with warehousing and bonded services anticipated to perform well despite recent margin adjustments due to increased rental costs and delayed shipments.

• GM's investment plan and new model launches are expected to gradually recover market share and boost transportation volumes.

• Management continues to focus on operational efficiency and capital discipline.

• No new accounting standards or changes expected to materially impact results in the near term.