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Introduction & Market Context
Kepler Weber SA (BVMF:KEPL3) presented its third-quarter 2025 results on October 30, showcasing resilience in a challenging agricultural market environment. The Brazilian grain storage solutions provider reported mixed financial results, with revenue slightly exceeding market expectations despite a significant earnings per share miss.
The company’s stock responded positively to the earnings announcement, rising 6.58% to close at 8.26 BRL, reflecting investor confidence in Kepler Weber’s strategic positioning despite near-term headwinds.
"We have prepared for these more difficult moments and the results are here," noted CEO Bernardo Nogueira during the earnings call, emphasizing the company’s focus on operational efficiency during market challenges.
Quarterly Performance Highlights
Kepler Weber reported net revenue of 423.3 million reais for Q3 2025, representing a slight decline of 3.6% year-over-year. Despite this decrease, the company achieved EBITDA of 73.6 million reais with a 17.4% margin and net income of 51.6 million reais, translating to a 12.2% net margin.
As shown in the following financial highlights table:
While these results demonstrate operational resilience, they represent a margin contraction compared to the same period last year. EBITDA margin declined from 21.2% in Q3 2024 to 17.4% in Q3 2025, primarily due to reduced gross profit and increased SG&A expenses.
The company’s earnings per share of 0.2283 USD fell significantly below the market forecast of 0.36 USD, representing a 36.58% negative surprise. However, revenue slightly exceeded expectations by 0.27%, reaching 417.11 million USD compared to the forecast of 416 million USD.
Segment Performance Analysis
Kepler Weber’s business segments showed divergent performance in Q3 2025. The International Business and Ports & Terminals segments demonstrated robust growth, while the Agribusiness segment experienced a significant decline.
The breakdown of net operating revenue by business area reveals these contrasting trends:
The International Business segment grew 23.6% year-over-year to 63.3 million reais, while the Ports & Terminals segment surged 97.4% to 34.3 million reais. The Replacement & Services segment also showed healthy growth of 10.8% to 79.9 million reais.
However, these gains were offset by a substantial 30.6% decline in the Agribusiness segment to 108.7 million reais and a modest 3.2% decrease in the Farms segment to 137.1 million reais. The company attributed the Agribusiness decline to market saturation and challenging macroeconomic conditions.
The company highlighted several completed projects that contributed to Q3 performance, including national grain storage facilities in Paraná, Mato Grosso, and Goiás, as well as international projects in Peru and Uruguay.
Strategic Initiatives & Investments
Despite market headwinds, Kepler Weber continued to invest in strategic growth initiatives. The company secured 257.2 million reais in new orders across 43 projects during the quarter, with deliveries scheduled within the next 12 months.
The breakdown of these new orders by business segment shows:
The company significantly increased its capital expenditure, with CAPEX reaching 53.5 million reais for the first nine months of 2025, representing a 105% increase compared to the same period in 2024. These investments were primarily directed toward modernization (49%), new products (19%), IT (19%), and supporting infrastructure (13%).
As illustrated in the CAPEX evolution chart:
Investment highlights for the quarter included the implementation of robotic and collaborative welding cells, reflecting the company’s focus on manufacturing efficiency and automation.
Financial Position & Outlook
Kepler Weber maintained a strong financial position with a cash balance of 363.9 million reais at the end of September 2025, up from 358.2 million reais in June 2025. This increase occurred despite distributing 25 million reais in dividends during the quarter.
The company’s cash flow dynamics for the quarter are illustrated below:
Return on Invested Capital (ROIC) for the trailing twelve months stood at 21.0% in Q3 2025, down from 24.5% in Q2 2025, primarily due to an 11.3% decrease in operating income after taxes and a 3.8% increase in invested capital.
Looking forward, Kepler Weber expects to end 2025 with a higher order portfolio compared to 2024 and anticipates entering 2026 with increased business volume. The company projects improvements in commodity prices but foresees high interest rates persisting through 2026.
The company emphasized its ability to maintain strong profitability despite challenging conditions, comparing current performance to the 2015-2017 period when margins were below 5%:
"We are not allowing this crisis to go unused. We’re attempting to become more efficient in our process," stated CEO Bernardo Nogueira, highlighting the company’s focus on operational improvements amid market challenges.
With its strategic investments in modernization, international expansion, and digital solutions, Kepler Weber appears positioned to navigate the current agricultural market headwinds while preparing for long-term growth opportunities in the post-harvest infrastructure sector.
Full presentation:
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