Rumo (RAIL3) Q2 2025 earnings summary

Executive summary

• Transported volume rose 4% year-over-year to 21.8 billion RTK, led by an 8% increase in the North Operation, with gains in soybeans, pulp, and bauxite, while the South Operation saw gradual recovery despite an overall decline.

• Adjusted EBITDA increased 6.4% year-over-year to R$2,279 million, with adjusted net income stable at R$731 million despite high interest rates.

• Market share in grain exports through Santos port reached 51%, and Mato Grosso share normalized at 42%, reflecting record soybean and corn harvests.

• R$1.5 billion in dividends distributed; capex reached R$1,395 million, aligned with investment plans.

• Significant events included a R$398 million impairment for Malha Sul due to weather-related infrastructure damage and concession renewal uncertainty.

Financial highlights

• Net revenue grew 4% year-over-year to R$3,711 million, driven by North Operation's 8% volume growth.

• Adjusted EBITDA margin improved to 61.4% from 59.9% year-over-year.

• Variable costs rose 22% due to higher volumes and third-party rolling stock expenses, while fixed and SG&A costs declined 3% nominally.

• Financial leverage at 1.8x Net Debt/Adjusted EBITDA, with net indebtedness at R$14.2 billion.

• Net financial expense was R$698 million, reflecting the prevailing interest rate environment.

Outlook and guidance

• Guidance for 2025 remains unchanged for volume, EBITDA, and CapEx, with expansion projects in Mato Grosso progressing and accelerated capex disbursement in 2Q25.

• Management expects continued operational improvements and market share gains in key agricultural corridors.

• Pricing expected to remain stable, with a focus on maintaining healthy margins and competitiveness.