Tegma Gestão Logística (TGMA3) Q3 2025 earnings summary

Executive summary

• Consolidated net revenue in Q3 2025 reached R$634.2 million, up 5% year-over-year, driven by higher average delivery distances, tariff adjustments, and growth in used vehicle logistics, while net income was R$79.9 million, down 5.4% year-over-year, with a net margin of 12.6%.

• Interim dividends and interest on equity totaling R$63.9 million (80% of Q3 net income) will be paid in November 2025, with a dividend yield of 8.2% over the last 12 months.

• Acquired a 200,000 m² land plot in Camaçari, Bahia, for R$40 million to expand operational capacity, with R$3.5 million planned for adaptations.

• Launched a decarbonization pilot project converting trucks to diesel-CNG hybrid technology, aiming for a 35% emissions reduction.

• Secured a new logistics contract with Omoda & Jaecoo, expanding the client base.

Financial highlights

• EBITDA in Q3 2025 was R$116.8 million, with an 18.4% margin, down 2.4 p.p. year-over-year due to margin declines and higher administrative expenses.

• Free cash flow in Q3 2025 was R$15.2 million, lower than Q3 2024 due to higher CAPEX and advance land payment.

• Net cash as of September 2025 was R$160 million, reflecting a strong cash position despite dividend payments and acquisitions.

• Return on invested capital (ROIC) was 37.1% and return on equity (ROE) was 28.6%, both down from the previous quarter.

• Dividend payout at 80% and dividend yield at 8.2% over the last 12 months.

Outlook and guidance

• Management expects Toyota's production halt to negatively affect volumes in the coming months, though the financial impact is difficult to quantify.

• Expansion in Bahia aims to meet new automotive logistics demands, supporting future market share and revenue growth.

• Dividend distribution remains above the minimum policy, with a strong yield.

• GDL will focus on diversification and new entrants to offset slower imported vehicle sales.