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Introduction & Market Context
Tegma Gestao Logistica (TGMA3) presented its third quarter 2025 results on November 4, revealing a mixed financial performance amid a stable Brazilian automotive market. The logistics operator reported revenue growth of 5% year-over-year while facing margin compression across its business divisions.
The Brazilian automotive market showed stability in the third quarter, with domestic sales and production remaining flat compared to the same period in 2024. However, exports surged 30% year-over-year, primarily driven by increased shipments to Argentina.
As shown in the following chart detailing the Brazilian automotive market performance:
Tegma’s stock rose 2.34% to R$37.15 following the earnings presentation, outperforming broader market indices and reflecting investor confidence in the company’s strategic initiatives despite the mixed financial results.
Quarterly Performance Highlights
Tegma reported consolidated net revenue of R$634 million in Q3 2025, a 5% increase compared to the same period last year. However, EBITDA declined 7% to R$117 million, with the margin contracting to 18.4% from 20.8% in Q3 2024. Net income fell 5% year-over-year to R$80 million.
The company’s core Automotive Logistics Division, which accounts for most of its revenue, transported 198,000 vehicles in Q3 2025, representing a 2.6% decrease from the previous year. This resulted in a market share contraction of 1.8 percentage points, primarily attributed to performance challenges among key customers. Despite the volume decline, the division’s revenue increased 7% to R$600 million, benefiting from a 4.6% increase in average transport distance to 1,116 kilometers, reflecting growth in sales to Brazil’s North and Northeast regions.
The operational highlights for the Automotive Logistics Division are illustrated below:
The financial performance of this division shows revenue growth despite volume challenges:
Meanwhile, the Integrated Logistics Division faced more significant challenges, with revenue declining 18% to R$34 million due to the discontinuation of a contract. EBITDA for this segment fell 40% to R$5 million, with margin compression to 14.0% from 19.1% in the prior year, primarily due to reduced gross margin and lower fixed cost dilution.
Detailed Financial Analysis
Tegma’s consolidated results reflect the contrasting performance of its business divisions. While the company maintained revenue growth, profitability metrics declined across the board.
The consolidated financial results are summarized in the following chart:
The company’s GDL Joint Venture continued to perform well, with revenue growing 9% to R$81 million in Q3 2025. Net income remained stable at R$16 million, though profitability levels declined slightly due to extraordinary rental cost increases.
Tegma maintained a strong balance sheet with an unleveraged capital structure based on cash generation. The company’s net cash position stood at R$160 million as of September 2025, down from R$236 million in June 2025, primarily due to dividend distributions and the strategic land acquisition.
The capital structure details are shown below:
Return metrics showed a slight decline, with ROIC at 37.1% (down from 39.2% in Q2 2025) and ROE at 28.6% (down from 29.5%). Despite these decreases, both metrics remain robust compared to industry averages. Free cash flow was positive at R$15 million for the quarter, though significantly lower than the R$54 million generated in Q3 2024.
Strategic Initiatives
During the quarter, Tegma announced several strategic initiatives aimed at long-term growth and sustainability. The company highlighted the following key developments:
A major strategic move was the acquisition of a 200,000 m² plot of land in Camaçari-BA for R$40 million, with plans to invest an additional R$3.5 million in adaptations. This acquisition positions Tegma to expand its logistics capabilities in a key automotive manufacturing region.
The company also announced a new contract with Chinese automaker Omoda Jaecoo, which entered the Brazilian market in 2024. As of October 2025, more than 4,000 Omoda Jaecoo vehicles have been registered in Brazil, representing a new growth avenue for Tegma’s automotive logistics business.
On the sustainability front, Tegma launched a decarbonization pilot project, converting trucks from exclusive diesel power to diesel-CNG hybrid technology. This initiative aligns with growing environmental concerns and potential regulatory changes in the logistics industry.
The company also noted that a September 2025 storm affected Toyota’s engine factory in Porto Feliz (SP), halting production in Brazil. This event is expected to impact Tegma’s transport volumes in the coming months, potentially creating headwinds for Q4 performance.
Forward-Looking Statements
Despite the mixed results, Tegma maintained its aggressive dividend policy, announcing distributions of R$63.9 million (R$0.97 per share) with a payment date of November 18, 2025. This represents an 80% payout ratio and an attractive 8.2% dividend yield over the last 12 months.
The company’s dividend history and shareholder return metrics are illustrated below:
Looking ahead, Tegma faces both challenges and opportunities. The stable domestic automotive market provides a solid foundation, while the growth in exports offers potential upside. The partnership with Omoda Jaecoo and other Chinese automakers entering Brazil represents a strategic growth avenue as these manufacturers increase their presence in the market.
However, the temporary production halt at Toyota’s engine factory and the ongoing margin compression in both business divisions present near-term challenges that management will need to address. The company’s investments in land and sustainability initiatives signal a long-term strategic focus despite these short-term headwinds.
Tegma’s stock continues to trade at multiples slightly below its historical average, suggesting potential upside if the company can successfully navigate the current challenges while executing on its strategic initiatives.
Full presentation:
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