Good morning, everyone, and thank you for waiting. Welcome to Aeris Earnings Conference call for the first quarter of 2025. Here with us today are Alexandre Negrão, CEO, and José Azevedo, CFO and Investor Relations Officer. This event is being recorded, and all participants will be in a listen-only mode during Aeris' presentation. After that, there will be a Q&A session when further instructions will be given. Before proceeding, let me mention that statements made in this call regarding the business outlook of the company, operational and financial projections, and goals are based on the beliefs and assumptions of Aeris Management. Forward-looking statements are not a guarantee of performance. They involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur.
Macroeconomic conditions, industry conditions, and other factors could also cause results to differ materially from those expressed in such forward-looking statements. Before turning the floor to the CEO, we would like to present today's agenda on page 3 of the presentation. We'll start with Mr. Negrão speaking about the highlights of the quarter and operational performance. After that, Mr. Azevedo will talk about the earnings of the first quarter of 2025. After the presentation, there will be a Q&A session and finally, closing remarks by Mr. Negrão. Now I'll turn the floor over to Mr. Alexandre Negrão.
[Foreign language]
Thank you, Laís. Good morning, everyone. Welcome to one more quarter earnings conference call. On page 4, we talk about the highlights of the first quarter. The main topic, which was on the news this week, was the renegotiation of the debentures. We started this process some months ago and finalized the renegotiation of the debentures at the end of March, and we are also finishing negotiations with banks now in May. In total, around 90% of our debt will be rescheduled, renegotiated. We will have more details during the call, but the most important thing is that we were able to extend the maturity date and also have a longer term to start repaying the debt. That was a very important step at a moment in which the industry is facing challenges, and the main event we had in the first quarter.
The second is the gain in operational efficiency in production processes. As reported in the last quarter, we have two lines that are non-mature. They are entering the stage of mature lines. This will increase our operational efficiency. Although, given that the volume is very low, we remain with margins that are very tight, and they will remain this way during this year because of the volume. The third point is that we start having the reports of wind energy installation during 2024, and 2024 was very similar to 2023, a bit higher, and mainly driven by China. Out of 170 giga, China is responsible for 80 giga, and the rest of the world, 37 giga, with some variations among markets. Brazil has dropped from 5 giga to around 3.5 giga in 2024. Brazil presented the highest drop in all global markets.
Now, moving on to page 5, we talk about operational performance. We ended the quarter with 1.1 giga delivered in LTM. If we look from 2023 - 2024, it was a loss of demand of two-thirds, and we ended the quarter with potential orders covered at 6.6 giga maximum. On page 6, as I mentioned, we are in the transition of two non-mature lines to mature lines. In the second quarter, they will be mature, which will lead us to a slight operational improvement during this year. Moving to page 7, I'll now hand the floor to our CFO, José Azevedo. Thank you, Alexandre. Starting on slide 7, here's a summary of our first quarter. Revenue totaled BRL 210.4 million and EBITDA BRL 11.4 million, and the loss of BRL 94.5 million in the first quarter of 2025.
I remind you that of the BRL 94.5 million, it's important to mention that BRL 80.4 million referred to financial result, which after debt renegotiations, as mentioned by Alexandre, we can expect an effective cash effect of cash disbursement of BRL 11.4 million, as showed on page 9 of the release. On slide 8 of net revenue, we show that in the first quarter, we had a slight drop in revenue of 0.5% when compared to the fourth quarter of 2024. Given the news that were published, this has been the comparison, as always, to the first quarter of the previous year, so first quarter of 2025 with the first quarter of 2024.
Given the circumstances of the company and also market circumstances with a very steep reduction in demand, it doesn't make sense to make this comparison because back then we used to have 10, and now we have 2, and this is a consequence of a drop in the market altogether. From now on, I suggest is to compare to the last quarter because the blades doesn't have seasonality. The revenue mix was more concentrated in the domestic blades market, representing 64.2% of total revenue. Exports accounted for 11.6%, and services accounted for 17.7%. Moving on to slide 9, EBITDA for the quarter was BRL 11.4 million with a margin of 5.4%. Here we highlight that despite the continuity of line V163 ramp-up, we can see that we are already operating with a leaner structure with satisfactory operational performance, which has a positive effect in the EBITDA margin.
On slide 10, we demonstrate investments that in this quarter amounted to BRL 8.2 million, an amount aligned with the company's budget for 2025. On slide 11, we present the indirect cash flow. In the quarter, there was a reduction in the operational activities line of BRL 254 million, of which BRL 200 million refers to customer advances reduction. It's important to highlight that we are looking at the best instruments to fund its working capital needs, and from now on, we choose to set up a proprietary FIDC investment fund as registered with CVM, and the purpose is to reduce financial costs even further. We show our debt. It's important to note here that on March 28, we had approval of renegotiation of the debentures by the debenture holders in the first and second issue. This renegotiation brought important changes, such as maturity date extension to 2030.
Up until 2030, we have this period to pay. It's an important waiting period of 2 years and 9 months to pay interest, and we have also included new early redemption clauses. This was an important step towards making our capital structure more predictable and balanced. This week, we filed with CVM the approval of yet another renegotiation, this time with a bank, with parameters very similar to those of the debentures, and until the end of this week, we expect to finalize another two renegotiations. So far, we have renegotiated 73% of the total debt, principal, and interest, because interest will capitalize on debt, and we expect to have another debt with an investment bank. We have reached the end of the presentation. We'll begin the Q&A. Thank you. Thank you, Azevedo. We'll now start the Q&A session.
If you have a question, please click on the raise hand option. After your question is answered, please click on the lower hand. Questions will be answered in the order they are received and within the time period reserved for the conference call. Please wait while we collect the questions. We will be silent for a few seconds.
[Foreign language]
First question comes from Ramon from Axial Capital. Good morning, Alexandre and Aeris Team. What's your current view on the prospects of advances of insertion of batteries in Brazil in combination with energy assets? Given that the wind capacity factor in Brazil is above 55%, the combination of wind plus batteries could boost new launches of wind complexes. Ramon Vieira from Axial Capital. Good morning, Ramon. Thank you for the question.
The batteries, there's a good discussion going on with the government whether the auction or reserve will happen this year and whether batteries will be part of it. If it doesn't happen this year, it has to happen sometime, some point in time, because this is a global trend, and Brazil will certainly follow that. Obviously, how much that will boost the increase of wind energy in our country is still hard to tell. That's a very good solution because both solar and wind energies are intermittent, so when there is a way to store that energy and render it more stable, it becomes more effective. We think it's a good idea, although we cannot say when this will happen and whether it will boost wind energy.
[Foreign language]
The next question comes from Gustavo Gândara from Orlean Company .
The increase in local sales is due to the resumption of energy demand, wind energy demand in Brazil. How do you see the demand for 2025 and 2026? Good morning, Gustavo. Yes, in order to sell more in Brazil, we need the market to start growing again. We did not sell or negotiate in a contract for a year. Some small deals were announced at the end of last year. There is a prospect of having more contracts this year between O&M and utilities, but so far, very little has been signed. We see some movements now in the market as last year regarding the climate fund with more attractive rates for wind energy, the extension of TUSD and TUD, the benefit of TUSD and TUD fees in the end of 2023. Some actions have been made to boost demand, but in practice, we did not see that becoming real yet.
We still have low prospects for 2025 and 2026 in the industry, with a growth expected for 2027 and 2028. The production of blades always comes in advance of what is being installed. Last year, as we produced 1.5 giga in blades, in Brazil was at 2.2, so the blades we produced in 2023 were being commissioned last year. This year, we'll produce even less, and the market, the drop arrives before for blades, as well as growth in the market arrives before. When we're talking about wind, this demand for wind energy will come from 6 months to 1 year before coming to Aeris. When we think that Brazil will resume growth in 2027-2028, it's likely that production of blades will start in 2026-2027. It's always a year in advance.
[Foreign language]
The next question is from Evandro Correia from Serena Energia. Thinking about the domestic market, do you see opportunity to renew the fleet of blades and or retrofit of similar models? Good morning, Evandro. In the domestic market, there's little visibility in terms of renewal of fleet because the Brazilian market is relatively new. The oldest blades are 11 years- 12 years old. Wind blades became operational with higher volume in 2012, so this retrofit or renewal is still low. In Unipower in the U.S., we see that growing in Europe as well. If the demand comes, it will come from international markets rather than from the domestic market. Encerramos neste momento a sessão de. This ends the Q&A session. I would now like to hand the floor over to Mr. Alexandre Negrão for his final remarks. Thank you very much for your presence.
Again, the main message for today's call is the renegotiation of the debt after some months of negotiation, and it was a very successful negotiation. We obtained the extension of the payment term and a waiting period to go through this low demand period. On the other hand, in terms of demand, this is the lowest demand we've ever experienced in the company's history. We expect that 2025 to be the lowest production year for the company since 2013. We believe that in 2026, we will resume gradual growth in the company. We do not believe that this will be exponential, but rather gradual. In 2026, we'll have a slight growth. In the meantime, we continue to adjust our structure. We made new adjustments to our capital structure and continue to adjust our operational structure.
In addition, we continue to grow in the services unit, which remains very strong. In addition, we continue to prepare for the growth in the production of blades that is expected to come during 2026 and 2027. Thank you very much and have a good day.
[Foreign language]
Alexandre. Thank you, Alexandre. The conference call of Aeris has ended. We thank you all for your time.