Earnings call transcript: Simpar Q3 2025 revenue beats forecast

Simpar SA reported its third-quarter earnings for 2025, aligning with expectations for earnings per share (EPS) but surpassing revenue forecasts. The company posted a net loss, yet its revenue of 11.39 billion BRL exceeded the projected 11.15 billion BRL. The stock saw a modest rise, closing at 5.27 BRL, up 0.95% from the previous day.

Key Takeaways

• Simpar's revenue exceeded expectations by 2.15%.
• The company maintained its EPS forecast despite a net loss.
• Stock price increased by 0.95% following the earnings release.
• Significant growth was noted in service revenue and adjusted EBITDA.

Company Performance

Simpar demonstrated resilience in Q3 2025, with consolidated net revenue increasing by 6% year-over-year to 11.3 billion BRL. The company saw an 8% rise in service revenue, reaching 9.1 billion BRL. Adjusted EBITDA improved by 14% to 3.1 billion BRL, achieving a margin of 27.5%. Despite these gains, Simpar reported a net loss of 119 million BRL, reflecting ongoing challenges.

Financial Highlights

• Revenue: 11.3 billion BRL, up 6% YoY
• Service revenue: 9.1 billion BRL, up 8% YoY
• Adjusted EBITDA: 3.1 billion BRL, 14% increase
• EBIT: 1.9 billion BRL, 17.2% margin
• Net loss: 119 million BRL

Earnings vs. Forecast

Simpar met its EPS forecast of -0.03 but exceeded revenue expectations, reporting 11.39 billion BRL against the forecasted 11.15 billion BRL. This revenue surprise of 2.15% highlights the company's ability to outperform market predictions.

Market Reaction

Following the earnings announcement, Simpar's stock experienced a slight uptick, closing at 5.27 BRL, a 0.95% increase. This movement reflects a positive investor response, possibly driven by the revenue beat and improved operational efficiency. The stock remains within its 52-week range, suggesting stable market confidence.

Outlook & Guidance

Looking ahead, Simpar is targeting zero debt for its holding company and anticipates continued growth with reduced capital expenditures. The company projects its ports to generate 230–240 million BRL in EBITDA next year, signaling potential future profitability. With business maturation and strategic spin-offs on the horizon, Simpar remains focused on value extraction and operational efficiency.

Executive Commentary

CEO Fernando Simões emphasized the essential nature of Simpar's services, stating, "Our businesses offer essential services. They are highly liquid because people can live without our company, but they cannot live without the types of services we provide." He also highlighted the company's growth strategy, noting, "We are going to extract a lot of efficient zero debt, grow and transform our companies in size."

Risks and Challenges

• Continued net losses could impact financial stability.
• Market saturation in certain segments may limit growth.
• Macroeconomic pressures could affect operational costs.
• Potential supply chain disruptions pose a risk to service delivery.
• Regulatory changes may impact long-term contracts.

Q&A

During the earnings call, analysts inquired about potential asset sales and strategic movements. Simpar addressed its deleveraging strategy and market concerns about short positions. The company also highlighted opportunities in infrastructure and service sectors, indicating a focus on long-term growth and stability.

Full transcript - Simpar SA (SIMH3) Q3 2025:

Conference Moderator, SIMPAR: Ladies and gentlemen, welcome to SIMPAR's conference call to discuss the results for the third quarter 2025. The session is being recorded, and a replay will be available on the company's website, ri.simpar.com.br. The presentation is also available for download. Please note that all participants will be in listen-only mode during the presentation. We will then begin the Q&A session, at which point further instructions will be provided. Before we proceed, I would like to remind everyone that forward-looking statements are based on the beliefs and assumptions of SIMPAR's management and on information currently available to the company. These statements are subject to risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists should be aware that macroeconomic conditions, industry trends, and other factors may cause actual results to differ materially from those in such forward-looking statements.

Joining us today are Fernando Simões, Chief Executive Officer, and Dennis Ferris, Executive Vice President of Corporate Finance and Investor Relations Officer. I would now like to turn the floor over to Mr. Simões, who will begin the presentation. Please go ahead, sir.

: Bom dia a todos.

Conference Moderator, SIMPAR: Good morning, everyone. We are starting the release of SIMPAR's third quarter 2025 results. On behalf of our more than 57,000 employees, I'd like to thank all of you for joining our call today. We'll begin on page three. I'd like to take this opportunity to reinforce our commitment to the continued execution of our strategic plan, extracting value from everything that's been built and everything that's been invested over the past years. On page three, highlights, we continue to see improvements in several indicators reflecting the execution of our strategic plan. Gross revenue from services grew 8% year on year, reaching BRL 10.2 billion. While our service revenue grew 8%, asset sales grew 82%. Our EBITDA margin improved 2.1 percentage points year on year. EBITDA grew more than 14%, while net capex decreased 40% year on year.

This reflects our ability to extract value from everything that has been built. As we always say, we invest the Capex first, and then revenue and results come. We have also executed several financial transactions that reinforce our broad access to diverse capital sources. As a consequence of these improvements in indicators, leverage decreased from 3.7 times to 3.5 times in Q25. We recorded a net loss of BRL 119 million, and productive ROIC reached 13.9%, an increase of 1.5 percentage points compared to the same period last year. In line with our strategic plan and our commitment to maximize value creation and discipline capital allocation, we sold 100% of SICLOS, the huge waste management concession, for BRL 1.1 billion in asset level. Value cash has not been received yet; our closing still depends on certain conditions precedent. We sold it to AGEA.

Let me remind you once again that SICLOS is the largest waste treatment center in Brazil, one of the largest in the world, producing 60% of Brazil's biobenthene from waste. It is a company with high engineering and technological standards. We are very pleased with this divestment, which aligns with the consolidation trend among the players in each industry. AGEA is an excellent company, recognized for the quality of its operations in sanitation. Now let's move on to page four. We have been emphasizing our focus on operational efficiency, pricing improvements, charging fair prices, reviewing contracts, and revisiting processes. These actions are already reflected in our indicators. Without creating expectations, we believe this improvement will continue over the next quarters. In Q24, service EBITDA over net fixed assets was 23.8%. In Q25, 25.2%. EBITDA last 12 months per employee. In the same period, we had 167,000. Now we have 207,000.

This has been a constant program, improving efficiency, whether through price adjustments, contract renegotiations, making sure that we are always charging fair prices. This requires attention to operations, pricing, billing, and contract management. We have also worked intensely on reducing operating and administrative costs, renegotiating with suppliers, and this has been a major difference. Again, without creating expectations, we believe these improvements will continue in the coming quarters. On page five, we talk about JSL. The company continues to grow its revenue organically. While revenue grew 5.5%, EBITDA grew 12%. That demonstrates operational efficiency and strong organic contract generation. In Q2 2025, EBITDA reached BRL 854 million. Operational margins, cash generation, reduced investments, replacing capex with equipment leasing, wherever appropriate. How this has supported the results and return on invested capital.

Now, the most important part about JSL that I would like to share with you is that under our strategy, we create business units, develop them, expand, transform, structure organizations, managing contracts, always strengthening customer relationships, reinforcing our strategic pillars, ensuring values and culture with agility, simplicity, work. This is how we built the business. JSL has just created Intralog, a company fully controlled by JSL, but established by combining its intralogistics operations with TCP. Also dedicated warehouses, shared warehouses. These operations do not involve trucks. It is basically warehousing. This is a company with more than BRL 2.2 billion in revenue last 12 months, over BRL 440 million in EBITDA and 23.1% EBITDA margin. I believe this is, if not the largest, one of the largest intralogistic companies in Brazil. With this, the company will have more focus, more agile, continuous development, and major opportunities for organic growth.

JSL will have dedicated transportation with its own fleet. It is going to be asset-light with third parties and independent drivers and the digital business. Three business and Intralog with its own taxpayer numbers will be audited and consolidated starting in Q25. The speakers are performing. Congratulations to JSL and the entire team for creating this business. I hope this is going to be a cycle of happiness. Page six, we have Movida, which has also released its results and has been doing an outstanding job. It continues to improve customer experience in line with its strategic plan over the past two years. It has delivered operational efficiency gains, improved the experience across reservation systems, customer services, pickup and return processes, and more broadly throughout the customer journey. Its stores are now mature, modernized, used car sales, as you can see, very consistent. Depreciation is stabilized.

The average fleet age is at 10 months and sales per store being regular, both in retail and wholesale. Excellent work. Together with that, a consistent market plan so that clients can know and use its services. That has brought hundreds of thousands of new customers, new taxpayer numbers, and we believe this is just the beginning of a new cycle. You will have some results that have brought this maturity. What is important is that there is still room for further improvement. Higher sales per store, stronger pricing, more volume from installed infrastructure. Some are already being completed. We expect continuous improvement ahead. Again, without creating expectations, we see significant upset for Movida's numbers and indicators. Page seven, we move to Vamos.

Here we present the main indicators showing revenue growth, EBITDA growth, and more importantly, the resilience in demand for trucks, machinery, and equipment leasing under long-term contracts, and the improvement of its main indicators. Now I would like to share how we see this moment and the cycle ahead for Vamos. Vamos has been deploying capex at a consistent pace that demonstrates resilience. Again, without creating expectations, I suggest you model the numbers based on what has been happening. Capex deployment around BRL 300 million per month, BRL 270-300 million consistently per month, a portion always of the SIMPRE Novo assets. If this pace continues, which is what is happening, it is growth above 10-12% in lease revenue. The company is a market leader with resilient revenue.

Since the beginning, we've always said that Vamos, that we know that we are going to sell the assets, huge opportunities to sell and lease in the market, repossessions and early returns made Vamos sell more used assets, and that has proven its capacity to sell assets, which gives us the comfort of resilient growth. Today, we have a larger inventory due to repossessions rather than weak sales capacity. Selling too fast could destroy our asset value. We prefer a pace that preserves margins, growing more than 80% year on year. Two other factors matter. Placing used trucks back into lease contracts of one- to three years. There is a market for used trucks. Also, extension. More than 40% of expiring five-year contracts are extended to one to two years.

Important pillars, used asset sales, contract extensions, and SIMPRE Novo leasing, which brings growth with lower Capex needs. When we look at Vamos ahead, this reinforces that we are leader in the segment with huge opportunity to grow in a resilient, sustainable manner. Now on page eight, we are going to talk about Automob. Automob is the company that concentrates all our automotive, truck, machinery, construction, and heavy equipment, and agricultural dealerships, Agrimob. Page eight presents its main indicators. Revenue growth, but at some point, higher expenses. We recorded one-off impairment related to new agricultural machinery inventory. This impairment was not done before because we all thought that the agricultural market was going to recover during the year. It did not. Conditions worsened. That required the impairment. Once again, it was a one-off event affecting only the agricultural business.

Automob has just completed a 12-18 months of store renovations, retrofits, relocations, new store openings, hiring people. I've said, I'm always saying that our expectation is to see a mature Automob by Q26 and to start Q27 at a different pace, a different cycle. Even so, we already see higher sales per store of new cars and used cars. We are gaining scale on the same store base with the same infrastructure. What will drive further improvement? The consolidation of our stores after retrofits, optimized systems, optimized inventory, better logistics, training, and developing sales forces. All this will bring more sales per salesperson, per store, and a more volume of new and used cars per store. Together with that, we have improvements in F&I, which is also materialized, and some new products that are being introduced.

That's what we believe that is quarterly improvements leading to its full maturity at the start of Q27. On page nine, we talk about CS Infra. We've been extremely disciplined in bidding, participating only when we have guaranteed revenue, where we don't compromise the group's capex, and where the business model is service-oriented. Our two ports will be fully operating next year. CS Infra has completed its first phase. The contract was extended. CS Cuiabá is moving forward. We won the eastern side terminals in São Paulo with CS Mobi. Practically all those projects are under deployment and will reach full revenue over time, all of them with a vocation for services, good returns, and guaranteed revenues. Those with the largest capex, ports and highways, are largely completed. On page 10, we show Ciclus Ambiental, made up of Ciclus Hill, Ciclus Pará, and several waste treatment projects.

As mentioned earlier, Ciclus Hill was sold to AGEA, pending closing conditions to complete the business. Now, page 11 shows CS Brasil, our fleet outsourcing and mobility subsidiary with driver services. Remember, a fleet outsourcing without drivers is Movida. The CS depends on licensing processes for new opportunities, but even so, revenues and EBITDA margins have been improving compared to net revenue, and we see more bid opportunities ahead. Page 12 brings our BBC Bank. We have a high-quality credit portfolio, solid guarantees, and delinquency below market levels. What does it mean? We finance cars, trucks, and equipment with large down payments, typically 30-40%. Finance high-quality assets with good credit performance, which leads to lower delinquency levels. The bank is now profitable and should generate consistent and growing profits as scale increases and fixed costs dilute.

Now I will turn the call to Dennis, who will go over the main financial indicators. Dennis. Thank you, Fernando. Good morning, everyone. On slide 13, we start with consolidated net revenue. On your top right, net revenue reached BRL 11.3 billion for the group, up 6% compared to last year. Service revenue grew even higher, 8%. The services here account for BRL 9.1 billion. Adjusted EBITDA reached BRL 3.1 billion in Q25 with a 27.5% margin. That is 14% above the same quarter last year in nominal terms, and also a very important improvement of our margin of 2 percentage points. EBIT reached BRL 1.9 billion in the quarter with a 17.2% margin. In nominal terms, 8% higher year on year and a 0.5 percentage points margin gain.

The three Q results recorded a net loss of BRL 119 million during the high interest rate environment, similar to what we saw in 2016 with a similar situation. Now, as always, the work that is being done, when the conditions arise, what we do is that we adjust our contract portfolios, our services to the new economic environment while focusing on cost reduction and the specific adjustments and corrections needed in each business. For example, seeking maturity in CS Infra's investment. Vamos improved asset utilization rate, Automob's opportunity to increase sales and services at the same store base. In the case of Automob, also completing the adjustment in agricultural dealerships, which led us to the impairment this quarter, which we normalized in the results presented. On slide 14, the next slide, we show net capex on a quarterly base.

We continue to show a reduction of the total, both in the nine months comparison, totaling BRL 3.8 billion, 45% below the first nine months of 2024. Even in the quarter-on-quarter comparison, in Q2 2025, we had BRL 1.1 billion of net capex, which is lower both year on year and quarter-on-quarter. We have to understand that this is basically because Q2 is seasonally higher investments. On the right side of the slide, we have as the largest share of net capex, Movida, then followed by Vamos, CS Infra, and JSL. We continue to see a continuous expansion of EBITDA across most businesses, reinforcing our commitment to extracting more value from investments already made. Next, page 15 continues the same topic, showing the relationship between annualized EBITDA and annualized capex. If you see, there was an inversion.

When we analyze the first nine months of Q25, annualized capex vis-à-vis annualized EBITDA is less than half, around 40%, meaning EBITDA is 2.4 times capex. In previous years, capex was larger than EBITDA. That shows again our commitment to generating returns from the existing asset base, and thus will continue to be our focus. On page 16, we bring consolidated cash and debt position. That reached BRL 41.4 billion at quarter end and cash BRL 14.5 billion. Important to mention is that in October, we completed BRL 4.1 billion in funding, five issues at CDI plus 2.3 and a 5.3-year average maturity. That is, in terms of liability management, we remain at fully normal, supported by our resilient business model, investments in real assets, and long-term contracts.

As a benefit of these issues, we can assume that pro forma liquidity will reach BRL 18.6 billion, fully covering maturities for Q25, Q26, and Q27. On the right side of the slide, we have the breakdown of our net debt, reinforcing that each business has its own covenants, its governance, and a different shareholder base. Even though all companies are controlled by SIMPAR, there is a governance and risk assessment that is performed individually by each business. With that, I'm going to go to the next slide, continuing the same topic now with the holding's debt. The holding reached net debt of BRL 3.2 billion, cash and financial investments of BRL 2.9 billion, and maturities concentrated basically around 2031. Still talking about indebtedness, I would like to go to page 18. Here we have a snapshot of our leverage.

Remember that we measure our leverage under the bond definition by net debt to EBITDA, which falls to 3.5 times despite higher interest rates. This is lower than both the prior quarter and year-end 2024. When we adjust for assets held for sale, the ratio would be even lower, approximately 3.3 times. We continue our journey to seek an ongoing deleveraging for the holding. Under the local debt definition, that is, net debt measured by adjusted EBITDA, leverage decreased to 2.2 times, also lower quarter on quarter and year in year. If we normalize these numbers, the number would be 2.1 times.

Finally, I'm going to go to my last slide on page 19, where we show the results of our efforts to adjust the portfolio across our companies and the group as a whole, where productive ROIC increased to 13.9%, a very substantial increase up 1.5 percentage points year on year. With that, I would like to turn the call back to Fernando. Please, Fernando. Thank you, Dennis. Now moving on to page 20, our last slide, we talk about the last five years since the reorganization that led to the creation of SIMPAR Holding that controls all the companies. Page 20 is divided into two parts. On the left, we show SIMPAR's transformation since Q2 2020. So we have the second quarter of 2020 when the reorganization was executed and the main numbers of Q2 2025 completing the five years.

This shows a profound transformation in governance, number of boards, number of companies, all major financial indicators, revenue, EBITDA, margins. More important than that is how we ended Q25. We are in infrastructure, in people, in logistics, in retail, in concessions, with diversified revenue across highly resilient segments. As I always say, our businesses offer essential services. They are highly liquid because people can live without our company, but they cannot live without the types of services we provide. We have highly capable people delivering the services, which makes us believe that the cycle we started in Q25, again, without creating expectations, but by executing our strategic plan, we are going to continue extracting value from everything we built. This will continue to bring recurring improvements in the coming quarters. This is not only about numbers or infrastructure. Our greatest asset is our people.

It is also about strategy. For example, the sale of Ciclus Hill, which we believe creates value for our entire ecosystem. What we see at JSL, where a business unit becomes a standalone company, Intralog, now probably one of the largest listed companies in Brazil, already born with BRL 2.2 billion in revenue, BRL 400 million in EBITDA without transportation, just logistics, operations, and warehousing. We have improved our results because we have strict pricing efficiency from the start of each contract and through disciplined monitoring. We always want to have fair pricing. We intensify cost controls, especially in periods of slower growth. You have to manage your costs better. You grow, occupy space, and then you adjust. Once you have occupied space, then you work intensely on reducing administrative and operating costs. We have improved our asset turnover.

Still a lot to be done, where most of our Capex sits. Better turnover, higher utilization, and proper pricing directly support improved results and a new level of efficiency across all our financial indicators. As a consequence, deleveraging. This is where we are focused and working hard. Stronger cash generation, lower investment needs, and greater, more efficient use of all assets and investments already made. We are very pleased with our progress and even happier knowing that there is still enormous potential to extract value from everything that has been built and is now prepared for value extraction. Once again, I would like to thank you for joining us. Now we are going to open the Q&A session to answer any of your questions. Thank you very much. Thank you. We'll now begin the Q&A session for investors and analysts.

If you want to ask a question, just click on raise hand. If your question is answered, you can click lower hand. If you prefer to submit your question in writing, please enter your question in the Q&A box, specifying your name and company. The first question comes from André Ferreira from Bradesco BBI. Mr. Ferreira? Good morning, Fernando, Dennis. Thanks for taking my questions. I have two. The group today has different businesses that started inside, gained scale, and became independent. Fernando, in his presentation, did talk about that, the constant evolution, and mentioning examples. As the group and subsidiaries gain size, do you see other strategic movements as opportunities? On the second question, asking about CS Infra specifically, what are the expectations for the company now that projects are closer to being fully operational?

Do you think you're going to have a higher cycle to seek new assets? I understand the profile is adding services, but now looking at the different pipeline of infrastructure services that you have, which segments do you see with more opportunities and with this profile of adding services? Thank you. Good morning, everyone. This is Fernando and André. Thanks for being here with us and for asking your questions. I would like to tell you the following. If we go back, even before we went public, it's been five years that we created Simpar, and then Simpar became a purely holding company with its subsidiaries. Movida as well, although we bought Movida, it already existed. We decided we already have a rental car company that we joined to Movida. Yes, André, this is part of our strategy.

As our businesses gain size, we continue with our culture, with agility and simplicity, with people focused, and we are always anticipating customer needs. For that, sometimes you need a unit to be an independent company to focus on that. This is what happened with JSL creating Intralog. Within JSL, we have Intralog that is a company 100% logistic inside the customers, warehousing, internal handling, even pre-assembly we have for some industries. This business was inside JSL, and it is a business with no transportation. It is a company that starts with BRL 2.2 billion in revenues. More important than that, the management level, the executive officers are in the company for an average 10 years. This was a company that was inside JSL as a business unit. Now we can give more focus to customers, organic growth.

It has already organic growth of 19% a year in the last years. That is why we develop completely independent businesses to have focus. That is the objective, and that can happen. It is part of our strategy to keep our culture, our way of operating, and based on our customer needs. With that, we have more opportunity to generate value to both clients, shareholders, and develop faster. This is part of our strategy to have this kind of movement. We are very happy now with the movement of JSL, Intralog with BRL 2.2 billion, but JSL is still with revenue close to BRL 9 billion. We dedicated fleet in operations like forestry and others, asset-like services with independent drivers, and the transportation, the digital transportation company that is still inside JSL.

Now, when we talk about CS Infra, indeed, the ports are about to be ready this month up to the end of the year with a high volume already contracted. CS Grains do Pianil also completed. There was an expansion that almost doubled the size of the operation. These are movements that we are making, but we've been extremely conservative in pricing, respecting the returns of the company. We have been very selective. What we have won are good projects focused on services that will not hurt the group, Capex, and that's how we are looking into opportunities. There are loads of them, but we are always extremely conservative to ensure returns and the development of all our businesses and lots of opportunities to come. André, for example, you have an auction of the sea transportation in the whole of the state of São Paulo.

You have already revenue in that. You have the electrification of the transportation ferries. We do believe in opportunities, in logistics, in safety, in health. These are the things that we believe that services with long-term contracts for the government to offer better services to the population. We are looking into new opportunities for the future in health, in safety, in leisure, or in services like these ferry services that I mentioned. Thank you, André. Thank you, Fernando. The next question comes from Pedro Bruno from XP. Mr. Bruno? Bom dia, pessoal. Obrigado por tudo. Good morning, everyone. Thanks for taking my question. The question is similar to the previous question, but perhaps having a broader view. You have been very structured in consistently speaking about deleveraging, both for the holding and the subsidiaries.

We have understood this communication in terms of operations, cost reductions, price increases, more efficiency in operations. That is very clear. There is the sale of assets, and that includes both business assets, subsidiaries, and we did see the example of Ciclus recently, and also the sale of operating assets, which would be within the scope of efficiency, perhaps. I would like you to give us a bit more color of how you see as a group the challenge. Again, a broader view, but just I would like to see more color, both in what you see in terms of opportunities to divest, as it was in the case of Ciclus, so you could give us an update on that, but also how the group sees the challenge of sales. Fernando mentioned to sell assets at a slow pace, not to hurt its markets.

So I would like to hear more about how the group is facing this challenge. That's it. Thank you very much. Hi, Pedro. This is Fernando speaking. Thanks for your question. Okay, Pedro. Transparency in communication is an obligation of ours, and I do thank you for the comment. We've tried to have a relationship with the market since we went public, as we relate to our clients, so that the market can know what we are doing. We've always tried to be as transparent as possible in our communication. On the other hand, we do have the responsibility in our communication not to create expectations and also not to share company strategies with the market because these strategies sometimes can be hurt in communication, in sales of assets or funding raising debts.

Strategies have to be set by the board and communicated sometimes post-execution to the benefit of everyone, including the market and shareholders. We are trying to have the best communication possible considering all that. What we say is that we wake up early every day, we go to sleep late, and our greatest asset is our people. We have to reduce costs, but we have to have better turnover of assets. We have to have more productivity in operations. We have to bring more customers to our business with a stronger relationship, more long-term, and we have to have people to control that. The sale of assets, you know, we are always looking into that, but that depends on the time, on the opportunity. Sometimes it happens, sometimes it does not. It can be one asset, it can be the other.

You are not in a company that is just selling assets for the sake of being. This is a company that has been generating value in whatever it does. We are doing our obligation. We are working for that. Every now and then, we might have movements. I think the greatest sale with Ciclus is just to show the market a value that was not perceived. It was built in-house. It was executed with excellence. It is a wonderful asset. You might have an asset like this in Brazil, but not better. Technically speaking, its engineering, safety, an asset that contributed to put an end to one of the largest dumpsters in the world and now generating 60% of biomethane from waste in Brazil. It is the greatest asset. I do not think there is anyone with better quality in the world. Why did we divest?

Because we consolidated, because we are going to generate value to AGEA that is focused on sanitation, and we will generate value to us as a group. We might have other movements, nothing right now, but very soon, as we say, the group is mature to generate value on what was built. At some point, we believe that the generation of better value will come from the divestment. We are open to that, but nothing that you know we have for sure now. Sometimes it does not depend on us. It depends on the opportunity. Thanks for your question, and we are working very hard, and as a consequence of our work, we want to decrease our debt and improve our leverage. Okay? Thank you.

Just to add to the answer, Fernando did talk about the strategic part, but remember, we went through a similar period of what we are having now with this spike in interest rates in 2016. What we can do to address that is to adjust our portfolio in terms of revenue, to have a balance with your relationship with your customers, and this has been done. We believe in the quality of execution, and at the same time, there are specific situations of each business to be addressed so that we can improve our results, not only because of economic rent of high interest rates, but because of the normal challenges in the development of a business. We are doing that, and together with other initiatives, it will certainly contribute for us to go to the right levels that we had in 2016 to 2017.

Thank you for your questions. Our next question comes from Pedro Tineu from Itaú BBA. Mr. Tineu? Bom dia, pessoal. Good morning, everyone. Thanks for taking my question. I think most of my questions were answered, but if I could go back to the ports, we are seeing several recent transactions with listed companies, acquired companies. Could you give us a bit more color about opportunities for CS Infra that we could see in the short midterm? As you mentioned about Ciclus, how you could unlock value, and there are other assets in the group that sometimes we do not account for. If you could talk specifically about ports, that would be really helpful. Second question, the efforts you have mentioned in terms of Capex to deleverage, I would like to have an update about that and your mindset from now on. Thank you very much. Hi, Pedro.

This is Fernando speaking. The ports. Okay, we have two ports. They are both about to be ready. They're almost ready. One is 100%, and the other is going to be ready by year-end. You know that ship slots, people generally hire four, five, six months ahead. We have our slots already being contracted for next year, and we have huge demands. Sometimes we make mistakes, and sometimes we get it right, even without realizing that. The demand of the port in Bahia is a lot higher than we expected, and we are negotiating these slots already. I think that these two ports, they were not even pre-operational. They were really wrecked. All the cranes, warehousing, we had to do everything over.

It took us about two and a half years, which also shows the capacity of our people to execute our engineering, all the mechanization of the ports, really outstanding. I think this is important to say because, you know, clients are thinking, when is it going to be ready? What's the timeline, etc.? We did it really exceptionally. Another thing that I would like to mention is that I'm not creating expectations, I'm just sharing our business plan, but next year, you're talking about BRL 400 million and EBITDA of about BRL 230 million-BRL 240 million. This is basically what we see at the ports for next year, which shows the quality of the assets we are talking about. Now, when we talk about Capex, and I'm going to turn to Denis for the answer, I would like to make a comment before.

We, in the first nine months of the year, reduced our CapEx by approximately 40%, net CapEx. This is 40% lower than last year, the same period. Service revenue grew by 8%, and EBITDA, comparing year on year, grew 14%. I think that shows you, Pedro, what we have been doing. And not because, you know, it was out of surprise. That was our plan to execute and build businesses and now enjoy from what is built, improving operational efficiency. This is what we have been doing. This is where we are focused, and that's how we are going to continue. Lower CapEx. We had important CapEx for renew, not expansion. Expansion, much lower than renew. And with that, you bring revenue inside. I'm going to give you an example.

If we continue at this time of deployment, at this pace of deployment of Vamos, about BRL 400 million, you have new assets, you have the same SIMPRE Novo, which are used assets, and you have contract extensions. If you continue at this pace, the company is going to grow between 10-15% a year with a much lower CapEx. That is the size and maturity of the businesses. That is why you have lower CapEx, and you can improve EBITDA margins. That is what we see to the future. I do not know if Denis would like to add to that. I think Fernando has already answered your question, and he addressed the main point, which is the continuity of our commitment of extracting more than what is built. One thing that we always have to take into consideration, we say that CapEx is our accounting base.

At some point, you have to compare when you're going to settle that. Sometimes you have capital information on the verge of some seasonality, and then sometimes you can enjoy an anticipation of what you're going to have for the next period. I think Fernando said it all, which is the continuity of our focus. Just as a reference, one of the things that Fernando mentioned, the slide on the ports, we have already released as guidance, so no news about what Fernando is mentioning. Very clear. Thank you very much. Have a good day. Thank you. All the best. Our next question comes from Artur Godoy, from Safra. Mr. Godoy? Hi, Fernando, Denis. Hi, Fernando, Denis, good morning. You did talk a bit about the auction for the ferries in São Paulo.

Could you give a bit more color on the project, the IRR you are expecting, main risks, and with regards to funding, if it would be possible to fund this project with the fund from the Marinha Mercante? Hi, this is Fernando speaking, Artur. I'm going to give you some numbers. I don't have all of them by heart, but later on, we can get back to you, or Denis can add to that. We have a committee that approves our investments. We have the technical specs and everything. I'm just talking about the business as a whole. Basically, the business, you have a complement of Capex, 50% that the government will invest. You have the counterpayment with a guaranteeing fund that will guarantee the revenues from the ferry. If you don't have the expected revenue, the government will complement that.

This is a 20-year contract, which is practically a take-or-pay. You already start with the operation. Since day one, you already have guaranteed revenue. There are 41 ferries in different areas, 60% in Guarujá, Santos, and then Ilhabela and São Sebastião. You have some other ferries with smaller routes. This is already into operation. These are the things we look into. We already start with revenues. The CapEx to renew the ferries, to transform the ferries, is for the next seven years, and they are going to be completely electrified. This is the kind of business that we want, and this is the profile of the operation. I'm going to turn to Denis to talk about returns. Hi, Artur.

This return in a competitive environment with this nature of concession is always something comfortable to talk about, but somehow we have to give you some comfort. I think that's good when Fernando says that we'll probably going to continue value created. Sometimes if we have the opportunity to recycle assets, this is the time that you're going to confirm if what we are saying makes sense. Without specific references to the project return, I think on the perspective of shareholders, that has to do with the perceived risk of the project, whatever project it is. I would say average equity would be about 25%. Could be a bit more, a bit less, depending on the project profile. Okay, thank you. Thanks, Artur. Our next question comes from Heloísa Cruz from Stoxos. Ms. Cruz? Thanks. Good morning.

My question is more or less in the line of the first question. I would like to understand how you see SIMPAR in five years' time. In five years' time, if we look at SIMPAR, are we going to see a company that from now on walked with businesses generating cash? Is it another cycle of Capex? What is incubating? Are we going to see more companies? I would like to have a view of the holding in five, ten years' time. What do you think it's going to be like? Hi, this is Fernando, Heloísa. Thanks for asking your question. What I can tell you is that we always think about the next five, ten, fifteen, twenty years, but we look more to tomorrow because in Brazil, you can look at the five years' time.

I think what is really different about us in terms of governance is to be agile in making decisions when we have to. You see the movement of Ciclus, Intralog. These are things that we do with agility. We are thinking of the next two, three years, perhaps. Of course, we always want to consider the long term. I always joke around when people ask me the question. If you look back ten years ago, who would believe we would be here today? Even five years ago, in 2020, we had the last slide of our presentation showing that this year it has been five years SIMPAR was established. When we talked about SIMPAR in 2020, we said, this is our plan. We are going to have the companies as independent companies. This is how we are going to work from now on. See what happened.

We went from BRL 8 billion to BRL 48 billion in revenues from three to eight companies. Today, you had two boards, one in a listed company. Now we have five boards. The transformation in the last five years was our plan to be here today and extract value. What is clear, but without creating expectations. In five years' time, and we expect even before that, the holding is going to be zero debt, 100% zero debt. This is part of our strategy, and we want it to happen fast. How? By executing and with the avenues that we have that we did not have in the past. Our businesses are completed, but I can say that they are mature, but they all have great opportunity to grow, all of them. Little penetrated market in car rental, truck leasing, logistics, even the company being high has a very small share.

Our bank is still very small. It is a niche bank that has huge opportunities to transform by financing equipment, being closer to truck drivers. Automob is just starting. I say that it's going to be ready by the end of 2026, beginning of 2027. This is now integration, infrastructure. In a nutshell, because I always talk too much, it's difficult to know where we are going to be in five years' time, but we are going to extract a lot of efficient zero debt, grow and transform our companies in size. With a lot less Capex, net Capex that was invested before, because the foundations are built. If you have a holding with zero debt, you have opportunity of growth and either considering other movements for the future. This is what we consider.

The business that is going to be the most important for us is our people prepared, aligned to our values and culture, and with a business management model that generates value to clients, shareholders, and society with sustainable growth. This is something we cannot do away with. You know, if you go from 2020 to today, if you think of the size of logistics, we did an important movement with SICLOS to generate value with related parties that we left to our shareholders to decide. The operation is about to be completed, and you're going to see the return that it brought. Movements like that are part of our strategy. Today, with the size and scale that we have, and with our governance, we have a lot more to do in the next five years than what we did before.

That's a bit what I had to share with you. Thank you. Thank you. Now we are going to start reading the questions in writing. Please wait while we collect the questions. I'm going to read the questions in writing. We have one question from Druvi Mehta that has to do with the same of another investor. He wants to know what is going to be done with the proceeds received from SICLOS. In our balance sheet, in our information, we haven't disclosed that yet. We don't have the proceeds yet. When it does come to our balance sheet, we want to deleverage SIMPAR. How exactly? We are not going to disclose because by announcing information, we might affect prices. That answers the question of two investors. We have a question from Ricard. He says SIMPAR is a company that has a very large short position.

You have less than 1% a year in lease areas. What is SIMPAR's position about the topic? We have institutional agents embedded in the shareholder base, but we also have lots of individuals. This is something that we are always discussing internally. We believe short positions foster liquidity, and there is a positive side to that. The only thing that we do not think is done in a nice way in the market is that individuals, by joining the several platforms, generally click on what we call compensated custody to have extra income. People make investments in the stock exchange. They want to create value. By clicking on that, they are making their share to be in a short position that is going to pressure the price down.

You want your price to go up, but you are giving the ammunition for people to bring the price down. Eventually you have to sell your stock at a loss, which is something that you fostered. What I think is that people are not aware of this, and they do not know the return they have. In an environment of 15% interest rates, you have 0.25% of custodial remuneration that is for free. The only thing we talk about for those that organize the market is that we lack transparency, especially for those investors that are affected the most. This is what we discuss, and we are always interacting with people in the market. It is just to be fair and to give the right transparency for investors to know what they are doing, because that depreciates their capital.

I think with that, we close the questions. There is one more. I'm going to read this one then. What is the process to monetize the ports? This is Fernando speaking. I'm going to connect the first and the second question and share with you, as it was mentioned, that we like to have clear communication, to be very objective. I would say something quite honestly, just to share my understanding with you. Dennis talked about short. There is a question about the sale of the ports, then questions about leverage. Let me tell you something. We have had our first listed company since 2010. I thank you all. You know that the company has been listed for 15 years. During these 15 years, we went through all crises possible in Brazil. 2009, 2010, we showed the company with BRL 1.6 billion. We had the dealerships out.

The company was BRL 200 million, if I'm not mistaken, in EBITDA. Then we had our IPO in 2015, interest rates high, the beginning of Movida. Everybody said, Movida is not going to work. It's going to bankrupt. The imported cars, Hyundai does not have market in Brazil. Vamos, oh, you're not going to sell trucks. This is not possible, etc. What I can tell you is that we work very hard. Our people, the group as a whole, really transformed the companies along the years. You can follow us from 2015 onwards and everything that we did. Where are we at today? We are talking about Intralog being created. You're talking about mature companies improving management, 40% less net Capex, 15% extra revenue from services, a transformation in results, better EBITDA margins. If you will consider, we have no history of impairment.

We know the value of our assets. We know our prices. We monitor that with a lot of responsibility, which is our responsibility. There was this one-off impairment at Automob, at a very specific agricultural market that really melted down. It was our responsibility to make the adjustment. Nobody saw that in the agricultural sector before. I am talking about new equipment. We know the business. Look at Movida. It has been improving its management, its people, better efficiency, better results. More than that, customer loyalty. In the last nine months, we had more than 500,000 new clients at Movida. Not depreciating the business, right the opposite, more customers, better results. Automob, 190 stores today. It is going to be transformational, and it is going to be a new company as of 2027. We renovated more than 80 stores in the last two years, 14 to be completed.

You have integration of systems and everything. This is what we have been doing. If I share with you, Vamos, it's something I mentioned since the beginning. It has sales channels. It can sell used trucks. We do have the market. We didn't expect the repossessions, but we increased sales, BRL 130 million-BRL 140 million a month. After the contracts mature, we can extend them. You can rent used trucks. You can have more leases through SIMPRE Novo. You know we are renewing more than 50% of our contracts. What I want to tell you is that we are very, very responsible. We are executing our plans, and we have the comfort to develop in a responsible, sustainable manner based on everything that was built before. Can we divest? Yes, if it generates value, and that is part of the business. That is not the target.

Decreasing Capex is not because we are losing market share. It's because we invested before, and now we just have to renew. We are not losing any customers by decreasing Capex. We are developing our business. This is what we had to share with you. Again, just to close, some companies in the last five years, what happened to them when we listed JSL, other companies that were listed, Vamos, many times we are seeing away. You consider other companies in the market, but look at our companies, and we are going to work very hard to continue. Any more questions? No. Just to close, on behalf of our more than 57,000 employees, I'd like to thank you very much for attending.

Sorry, I took a long time in my answers, but I think it's very important that you consider what the group is like today, where we are going to share our view for SIMPAR and my view with you on behalf of our 57,000 employees. We thank you very much for attending. More than 150 people. It's an honor to have you here. It's an honor to be here with you. What I can ensure you is that myself and the team that really makes the difference are committed to continue working hard and dedicating to extract the maximum value of operational efficiency, reduction of cost, management of our assets, but above all, working together with our customers in highly resilient markets and through our services have more and more customer loyalty.

As a consequence, decrease leverage and create value to our shareholders and strengthen our relation with those that finance us, investors, and clients that trust our work and to society that benefits from our work. Thank you very much. Thank you for joining us. SIMPAR's conference call is now closed. We thank you very much for joining us and wish you a good day.

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