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Results impacted by global uncertainties
Progress in the operational efficiency agenda and beginning of revenue recognition
from new contracts in the second half of the year
Net Revenue: R$2.5 billion in 1Q25 (-4% vs. 1Q24). The depreciation of the Brazilian real and revenue growth in the Distribution and Energy & Decarbonization segments partially offset the impact of low physical sales volumes related to light and heavy commercial vehicle applications for North America and Europe.
Adjusted EBITDA: R$247 million (-20% vs. 1Q24), with a margin of 10% (vs. 12% in 1Q24). Impact of lower volumes, which affected fixed cost dilution, partially offset by a favorable exchange rate scenario and margin improvement at MWM. The YoY comparison with 1Q24 is impacted by the receipt of amounts related to (i) insurance claim indemnities from an operation in Mexico (in the amount of R$26 million), and (ii) price adjustments recognized during that period.
Operating Cash Generation: R$68 million. Impact from working capital management initiatives, with a 4-day reduction in the cash conversion cycle compared to the previous quarter (4Q24), a favorable exchange rate environment, and performance of the MWM operation.
Net Result: Loss of R$12 million (vs. Income of R$112 million in 1Q24). Impact of the exchange rate variation on balance sheet accounts denominated in foreign currency, of R$62 million, and the appreciation of the Mexican peso over the tax base (a YoY negative impact of R$33 million).
Shareholder remuneration: (i) Payment of Interest on Equity in the amount of R$ 190 million, declared in 2024, (ii) termination on May 14th, due to the expiration of the 18-month term, of the Share Buyback Program approved on November 13th, 2023, which during its validity resulted in the purchase of 13.6 million shares (an investment of R$ 299 million), and (iii) deliberation by the Board of Directors to convene an Extraordinary General Meeting to propose the cancellation of treasury shares.
To access the Earnings Release, click here.