Earnings call transcript: Motiva’s Q2 2025 sees profit surge, stock dips

Motiva Infraestrutura de Mobilidade SA reported a significant increase in net profit for the second quarter of 2025, driven by strategic efficiency improvements and asset management. With a market capitalization of $5.12 billion, the company trades at an attractive P/E ratio of 13.48x. Despite the positive financial results, Motiva’s stock experienced a decline of 0.79%, closing at 13.89 USD, reflecting market concerns over future growth prospects. According to InvestingPro analysis, the stock appears to be fairly valued based on its comprehensive Fair Value model.

Key Takeaways

• Net profit soared by 235% year-over-year to 897 million euros.
• Stock price declined by 0.79% despite strong earnings.
• Efficiency ratio improved to 38% for 2025.
• New market expansions and infrastructure investments announced.
• Continued focus on technology integration and efficiency.

Company Performance

Motiva Infraestrutura de Mobilidade SA demonstrated robust performance in Q2 2025, with a substantial year-over-year increase in net profit. This growth was attributed to a strategic focus on efficiency and profitability, including a 24% reduction in total cash costs. The company maintains impressive gross profit margins of 45.9% and a healthy current ratio of 1.88, according to InvestingPro data. The company also reported a 4% growth in adjusted EBITDA, indicating improved operational efficiency. Motiva’s competitive position remains strong, supported by a diversified debt portfolio and efficient hedging strategies, with a notable 23-year track record of consistent dividend payments.

Financial Highlights

• Net profit: 897 million euros, a 235% increase year-over-year.
• Adjusted EBITDA: 4% growth.
• Total cash costs: Reduced by 24% year-over-year.
• Consolidated net debt: 32.3 billion BRL.
• Efficiency ratio: Improved to 38% for 2025.

Outlook & Guidance

Looking forward, Motiva maintains a positive outlook, with CapEx for 2026 expected to remain similar to 2025. The company plans to continue focusing on efficiency and technology integration while exploring new market opportunities and contract renegotiations. Revenue and EPS forecasts for upcoming quarters and years suggest steady growth, with EPS projected at 0.18 USD for FY2025 and 0.22 USD for FY2026. The company’s strong financial health is reflected in its "GREAT" overall score of 3.01 on InvestingPro, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 US equities.

Executive Commentary

Miguel Cetas, CFO, highlighted the company’s progress, stating, "We have been advancing our goals by about 1%." Waldo Perez emphasized the strategic focus on profitability, noting, "Our strategy of focusing on more profitable assets and active management contributed directly to this."

Risks and Challenges

• Market saturation in key regions could limit growth potential.
• Macroeconomic pressures may impact infrastructure demand.
• Regulatory changes could affect operational costs and project timelines.
• Competitive pressures in the infrastructure market remain moderate but persistent.
• Potential fluctuations in foreign exchange rates could impact financial performance.

Motiva’s Q2 2025 performance reflects solid financial management and strategic investments, although market concerns about future growth potential have tempered investor enthusiasm. The company’s continued focus on efficiency and innovation positions it well for future challenges and opportunities.

Full transcript - Motiva Infraestrutura de Mobilidade SA (MOTV3) Q2 2025:

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Good afternoon. Thank you for holding, and welcome to earnings call for the 2025 for Motiva Infrastrutturag Mobilidade S.

: A. This

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: presentation is being recorded and simultaneously translated. If you’d like to listen to the translation, you can click on the interpretation button. If you are listening in English, you also have the option of muting the original audio by clicking on mute original audio. Before we continue, we would like to clarify that any statements made during this call about the company’s business perspectives, projections, operational goals are simply based on the company’s assumptions and beliefs, which is therefore based on the information

: that is currently available for that.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: The remarks about the future are not in review performance. They involve risks and uncertainties and depend on favorable conditions. My name is Miguel Cetas, CFO. I am here with our CFO, Paulo Perez and the Investor Relations Director, Flavio Ladoi. As per usual, today, are we going to make a brief presentation of our results for this quarter and then we will remain available at the end for questions and answers.

This is a quarter in which we consolidated our strategy. We were able to post very positive results this quarter. Net profit went up 235% year on year, representing €897,000,000 for the at the end of the quarter and an adjusted EBITDA growing at 4%. We’ll see more details about this later on. The company’s total cash cost is down 24% year on year.

We will show several comparisons later on. To make it clear what were the effects of each part of this business. At the end of the day, is showing that the company has been advancing against its efficiency program and has been delivering cost reductions, which have been announced before in our strategy. Results of cost reduction. One component, as you can see, there was a reduction of 10% at headcount versus the first excuse me, versus December 2023, which was the biggest size of our organization headcount.

Since then, we have reduced 1,700 headcounts in our structure, which is significant, about 10% of our size. In the first half, it was 38%. In the last twelve months, it was 40%. So the 2024 still carries some weight in this ratio, but we believe it will be below 40%, closer to 38% until the 2025. We are advancing our goals by about 1%.

CapEx for the And our CapEx execution has ramped up, as was expected due to our investments. This is our concession in much of the Azulabarov market, which now has the conditions that will correct, which is a disbalance from this concession from VMI. It is now rebalanced for this new contract. And this asset and at the end of the day, this will be translated into higher satisfaction rate for the clients using this asset. And And finally, two notes, one on sustainability.

The company has confirmed presence in B3’s Corporate Sustainability Index for the fourth key year in a row. And finally, We highlight on liability management. This week, we concluded an optimization operation, auto bond financing plan, issuing debentures for that asset. That led to a significant reduction of our average We will see more than BRL $370,000,000 in value from the liability management operation. So this was a quarter that was closely aligned to our strategy implementation.

From Abesvier now called Ultibaya Patanal and also due to the fact that we concluded in the first quarter contracts that we have for barges in Rio De Janeiro. This was also going to lead to high economic imbalance in our operation. So this has created a significant impact this quarter. Therefore, we’re very happy, very excited with how our strategy is being I’ll implemented and communicated to the hand it over to Mr. Waldo Perez, who will give us some more details on these highlights.

We’ll come back at the end for the Q and A. Thank you. Good afternoon. We will now discuss the quarter’s highlights. The quarter’s operational performance reinforces the resilience of The U.

Portfolio. In toll roads, the highlight was growth in passenger vehicles of 5.4%, driven by extended holidays and recovery in regions affected by weather Events also catalyzed stronger growth in commercial vehicles at VECO STETA and VSO, which contributed to a 2% growth in commercial Although we’re still in an initial period of operation with just over twenty days of production, the first results for PRPS already demonstrate adherence to the business plan. The performance observed is above the government’s demand studies, which reinforces the consistency of our internal models and confirms the increase in departing traffic as we expected. These early signs are positive and indicate that the concession is progressing well even at a very early stage. On the rails platform, performance was slightly positive, reflecting the consolidation of demand on the VLT Carriaco and higher occupancy in offices in regions served by Viaquatro and Via Mobilidades lines eight and nine.

For airports, we had another strong quarter. Demand grew by 10%, especially at BH Airport and the South made we We of four percent and one point two percentage points of margin expansion, with margin expansion on all platforms. So a very solid result.

: Even

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: with this portfolio expansion, the company has kept a tight rein on this quarter. Excluding nonrecurring effects, we saw a 1% reduction in cash costs. With an emphasis on lower

: expenses that percent in headcount

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: The 8% reduction in headcount contributed positively to the variation in people to partially contain the impact of the On of of impact impact of of the impact the of higher maintenance, cleaning and systems services, especially in track and airborne assets. Additionally, in the same line as other costs, the closure of the loss estimate in MSV and the receipt of claims at Via Sul were factors that contributed positively to this result. We ended the 2025 with an efficiency ratio for the last twelve months of forty percent. However, the results of cost reduction and portfolio optimization initiatives are now beginning to show. The efficiency ratio for the 2025 was 38%, reflecting consistent progress towards our ambitions.

To maintain this pace of coordinated action, we believe that the projected target for 2026 can be achieved still this year. And the second quarter portfolio optimization boosted Motiva’s corporate headcount of business model. Our strategy of focusing on more profitable assets and the active management of share based thinking contributed directly to this. Although the financial result was pressured by the high level of interest rates, and 24.8% increase in the company’s gross debt, there was a significant positive impact of BRL480 million resulting from the constitution of MSVS Deferred Tax Act, which helps to mitigate some of this pressure. In addition, the comparable effective tax rate, excluding nonrecurring effects, reached 39%, which is a reduction of six percentage points compared to the same period last year.

A significant advance in the company’s tax efficiency. Also, we can already see the effects of Motiva’s active portfolio management with a strategic, disciplined, and profitability oriented approach. Even with the expansion of its portfolio, Motiva has maintained a solid and balanced financial profile. Consolidated net debt totaled BRL 32,300,000,000.0, with around 50% maturity around 02/1932, preserving its long term profile and ensuring predictability and financial security. Leverage remains under control with the adjusted net debt to EBITDA ratio at a monthly level.

Naturally, it’s higher than in the previous period, as expected, given that the new assets are still in the startup phase and do not reflect their full cash generation potential. Another positive is the diversification of debt and its indexes, combined with an efficient hedging strategy, which protects the company against market fluctuations and strengthens its ability to grow responsibly and sustainably. As was already mentioned by Miguel, as an event subsequent to the 2025 and in line with ongoing efforts to reduce the cost of debt, we carried out a liability management operation at Autobahn, replacing the CDI plus 2.14% rate with a new CDI minus 0.17%

: rate, a

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: reduction of two thirty one basis points. This initiative represents a significant advance in financial efficiency and will result in a gain of NPV of around BRL $320,000,000, reinforcing our commitment to discipline and liability management and to generating sustainable value. The accelerated pace in investments was one of the highlights of the quarter, with a growth of 31 compared to the 2025. This reflects Motiva’s commitment to improving infrastructure and the customer experience. Works on highways, railroads are progressing consistently, especially duplications underway in the VOSG, RioSP and Viosu concessions.

Refurbishment of five twelve plazas already operational at Yaziz, improvements to more than eight stations as well as investments in energy systems, especially on Lines eight and nine and Via Cuatro. The expansion of the IRIS terminal in line with the investment schedule set out in the contract. Emblematic project, such as the duplication of Cerro Desarares and the more modernization of lines eight and nine illustrate how resources are being used with focus on positive impact and efficiency. I’d like to also bring up an important point about As of the 2025, improved works began to be activated due to the future economic benefit of the section of the highway network previously managed by COSG and currently managed by Rota SORO Cabana. Summarizing the financial highlights of this second quarter, we had another quarter of growth, margin expansion across all modes, significant increase in profitability, and rigorous CapEx execution.

That concludes my presentation, and we can now begin the question and answers session. Thank you. You will then get a request to turn on your microphone, and then you can ask your question. Lucas Marchiore from BTG. Please go ahead.

Thank you. Thank you, everyone. A couple of questions from me I understand if there was any cause for this, if there were one of the projects. I imagine that there are potential consequences. So that those are recurrent.

If you can Thank I you. May ask Waldo to ask for the first question on capital structure. And then Flavia will go into details gain to perform the required We are very happy about the leverage and the fact that the same thing will improve over time as these projects advance. Yes. As you know, we have this concern about net debt and the holding that went out due to these captures.

This is a part of our strategy to continue looking at opportunities for capital recycling. This is still ongoing. However, as a conclusion, it’s likely that this would happen next year or not this year.

: Hi, Lucas,

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Lucas. Good afternoon. Thank you for that question. When we look at the second quarter, we’re talking about a quarter that usually has

: a seasonal pattern.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: This seasonal pattern is due to contract cancellations. Yeah. Which took place in the second quarter.

: Euros

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Another relevant point, when we look at our release, which discusses the holding of others, we are consolidating data

: for CSD.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Has taken us to this 38% ratio. That’s a good milestone. And I think it shows that we’re going to conclude this by 2025 by the 2025 in advance from our planned dates. Thank you, Lucas. Matteo Santana from.

Go ahead. Of the process? How So competitive do you think this will be? The competitors will to change how these businesses the tenders are organized. So what do you think about these projects?

Thank you, Matteo. What I would on the market right now. So we’re looking ahead and seeing the opportunities that we can capture from the recent past. One of them required a contract renegotiation. And we have a very selective strategy with profitability requirements positioning our appetite with a requirement for a very high requirement for risk and return.

These two renegotiations you mentioned are being studied. There have been no decisions made by the company. If we are participating in this or not, we are analyzing this part of the market. About competitiveness and competition in the market, we continue to look at how other operators are participating in the market. As you know, we have strategic players, we have financial sponsors, which are active players.

Companies, we have industrial players. So competition will become higher. We understand that this is a environment that has limitations will get away of these players. We believe that it’s a moderate competitive environment right now. And, of course, this is good for Motiva since we have capital, and we have several competitive advantages.

Thank you. Alberto from UBS. Go ahead. Thank you for taking my question. I have a question specifically about the This And referring back quarter.

What should we expect for the next year? A quick comment about your second question and then I’ll pass it over you on CapEx. About CapEx, as you’ve seen, we concluded this quarter with a significant advance versus the first, typically the second half of the year has a more relevant CapEx volume. This is more than twice as much as we had in the first quarter, but we are convinced that we will be close to this capital project. Will he hear more about this?

Our estimate for CapEx next year, of course, we’re going to have specific moments to talk about our capital budget responsibility we took with the new projects, the magnitude of the projects that we have 2026 similar to what we had in 2025. So very similar ballpark to our investments in 2025. We expect to see higher execution rates so that we can be closer to our capital budget. Any questions about Suru Kabana?

: Alberto. Right.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Alberto, about Suru Kabana, we’re still at the beginning. Right? So there hasn’t been much time. Our demand has been lower than we expected, and that in itself is our margins.

: But when

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: we created our studies and when we set the entire structure for the necessary cost to operate

: this concession, we

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: really focused on efficiency. Since it’s a new concession, that makes it easier to focus on efficiency from the beginning. So our guidance was a 63% margin. Initially, it was 74%. I cannot say that it will remain at that level, but we’re comfortable in the fact that we will have attractive margin levels considering how focused we are on That the was very clear.

Thank you. Just a question. For 2025. Is that close to 2,000,000,000?

: Fejeda from Bradesco. Go ahead.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Good afternoon, everyone. Thank you. Congratulations for these results. Two questions. Deceleration at the end of show.

So if you can tell us about your expectation for the rest of the year traffic. And what will drive this traffic? What should drive this traffic? My second question is opportunity you talked about market opportunities related to contract renegotiations. If you could talk about the project pipeline, excuse the pipeline for new projects, that would be great.

Thank you. We still had a significant So we’re not going to We’re going to we’re going to go of our high standards of risks and returns in in our projects. That was very clear. Thank you. Thank you, Andre.

: Felipe Nielsen from

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Citibank. Go ahead. From JP Morgan. Please go ahead. First, congratulations on things faster.

Your password is so far. And I just like to ask if there is any stage for similar operations. You. Thank you for your question. In 2020.

This is what Paulo alluded to. I’m not going to make any specific comments process, but we’re going to keep the market informed as we went. We will communicate without that to the market. So regard to liability management, I also remember in the last quarter, we got the same question and the answer remains same. We’re constantly focused on optimizing capital structure.

The treasury and financing team, we’re always looking liability management. That’s when we have space for more liability management. We do expect to have some further operations until the end of the year. In this transaction, we will have It will be a potential value generation of 600,000,000 in the last twelve or eighteen That was very clear. Thank you, Miguel and Baldo.

: Ricardo Belo, investment.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Go ahead. Hi, everyone. Can you hear me? Perfect. Industry.

I’d also like to ask about airports. You mentioned the airport and citizens of the discounts. Itanbang more and the higher occupation in the Central South blocks. We believe that this will be limited for now. There’s a systemic effect to international economy, which can end up affecting the entire country, the Brazilian economy.

But the direct effects will be more limited. I’m not faulted to talk about this. Yes, that’s exactly it. According to our analysis, which have been taking place from the beginning of this issue. And again, we’re not only focusing on demand, but also looking at our suppliers in general.

The possible impact that we

: have estimated may

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: appear, but They are still small. We don’t have anything significant on the radar that could impact our business significantly. With that being said, we will continue to monitor and look at this to make sure that this will not occur. And if it does, don’t believe About airports. Synergies between our portfolio in Brazil and our international So We are initiating some flights to Curacao Costa Rica for Brazil.

In Brazil, we’re looking at past negotiations, which are expiring gradually bringing a better mix. Improving the mix for store owners, chicken and mayo products that can have a higher ticket. So commercial revenue.

: It’s a significant and growing area.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: The airports and airlines. So we’re always trying to avoid peak hours and spread this across airport. So that’s another efficiency that we’re seeking. We’re always trying to develop this with our airlines to develop new lines and optimize routes, which is always good for

: us. But

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: in the medium term, there’s some potential. And this comes with these concessions

: investment in real estate having

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: more real estate investments with partners. Terminal. For example, we are a logistics terminal. Our partner has been with us. And once it starts to operate, this will provide additional That’s one example, but there are several other opportunities.

But this takes time Because of the last developing the project, getting approvals, and starting operations, usually, it takes several months. Thank you. Thank you, Ricardo. From Citibank sent us

: to open.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: Taking this question and What size? What amount? Thank you, Felipe. So OpEx cash, net complementara. Revenue.

Maybe what is new about this future projection, the submission that we’re going to create a connection between this efficiency variable and our plan for the year of implementing technology. So we are creating technology and innovation plan. And this is being linked to our cost reduction ambitions. So our expectation is that September, when we go to the market, we will have an update to the ratio that we communicated, which was 38% in 2020. Because if we reach this in 2025, our ambition will naturally be higher than this goal that we established initially.

Voldo, I don’t know if you have any comments about this. Regarding the plan, we are in the implementation stage. Last year was the diagnosis stage. We were developing all of the different initiatives. And this year, we are starting to capture these initiatives.

Part of it has been captured in the first quarter, but there’s still some space to capture more. Our efficiency team is developing a new plan for the next years, which will continuously look at process improvements in innovative ways. But also, as Miguel mentioned, We’ll use more technology in order to provide a higher level of efficiency than what we currently It will be within Boundaries that we meet the And so we’re close to the limit of So naturally, our projects This is how we look at some good CapEx adjustments. And that’s why we have a well established CapEx curve with some stability for the next years and then we will start seeing some space for date expiration date on this curve. Longer the better the relationship we have with our strategic call partners and implementing our aspects.

12,000,000 to This So will allow us to, you know, do both things at the same time. Anything else? So I don’t think I answered your question, Filipe. Well, he won’t be able to say because he sent it in writing. So if there are any outstanding questions, we are available after this meeting to to answer you personally.

This concludes the question and

: answers session. Cetas for his closing remarks.

Miguel Cetas, CFO, Motiva Infraestrutura Mobilidade: We have been in this call for you early now. So thank you once again for your attention this quarter. And have a good

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