Transport Trade Services (TTS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues increased sequentially from Q4 2024 but fell 33% year-over-year to RON 160.5 million, with a net loss of RON 14.9 million compared to a profit of RON 32.1 million in Q1 2024.

• Market share in river transport, especially via the Danube-Black Sea Canal, rose significantly, with a 30% increase in share and 20% growth in volumes versus Q4 2024.

• The group’s main activities include river transport, forwarding, and port operations, with significant operations on the Danube and in Romanian ports.

• The group focused on cost reduction, particularly in river transport, achieving notable decreases in salary, subcontractor, fuel, and repair expenses.

• Operating result swung to a loss of RON 10.5 million from a profit of RON 38.5 million year-over-year.

Financial highlights

• Revenue for Q1 2025 was RON 160.5 million, down 33% year-over-year, but increased sequentially from Q4 2024.

• EBITDA margin stood at 9.5%, with a profit margin of 6.2%, both impacted by reduced tariffs and cost pressures.

• Net loss for Q1 2025 was RON 14.9 million, compared to a net profit of RON 32.1 million in Q1 2024.

• Cash and cash equivalents declined to RON 95.1 million from RON 129.2 million at year-end 2024.

• Operational expenses were significantly reduced, supporting a solid balance sheet and maintaining low indebtedness.

Outlook and guidance

• Expectation of margin improvement in operation activities as market stabilizes and tariffs recover.

• Anticipated increase in revenues and costs in Q3 2025, driven by higher activity and potential grain harvest volumes.

• Budgeted revenues for 2025 are considered achievable, with a clearer view expected by August after the summer harvest.

• In April 2025, shareholders approved a dividend distribution of RON 27.9 million (RON 0.155 per share).