Earnings Call: Q3 2025

Nov 6, 2025

Summary

Record Q3 revenue of R$486M, adjusted EBITDA of R$96.7M and net income of R$7.8M. Growth included 30 new operations and expanding digital and EV charging businesses; unusually strong working-capital cash benefits were one-off.

Results for third quarter 2025. Estapar is a lot more than a parking lot. Our purpose is to simplify and connect a life of a society in motion. 804 operations in 105 municipalities in 19 states. We are present in more than 20 sectors of the economy. More than 7,000 employees. The Zul+ app has more than 8 million users. 44 years of commitment to urban mobility. Wherever you go, there is Estapar. Good morning, and welcome to the third quarter 2025 of Estapar. We would like to inform you that this conference call is being recorded, and its content will be available at the company's website at ri.estapar.com.br where the complete material for our earnings release is available. Today's presentation can be downloaded through the chat, even the English version. For those who need simultaneous translation, this feature is available through the platform. To access, simply click on the interpretation button using the globe icon at the bottom of the screen and choose your preferred language, Portuguese or English. For those listening to the conference in English, you can mute the original audio by clicking mute original audio. During the company's presentation, all participants will have their microphones disabled. At the end, we will open the Q&A session. To participate, just click on the Q&A icon in the bottom of the screen and send your question in writing to enter the queue. We emphasize that the information contained in this presentation is any statements that may be made during this conference call regarding Estapar's business prospects, projections, and operating and financial targets of the company are the beliefs and assumptions of the company's management, as well as the information currently available. Forward-looking statements are no guarantee of performance as they involve risks and uncertainties and assumptions referring to future events that may or may not occur. General economic conditions, market conditions, and other operating factors may affect performance and lead to results that differ materially from those expressed in such forward-looking statements. Today, we are joined by Executives Emílio Sanches, CEO, and Daniel Soraggi, CFO and Investor Relations Officer. Now, I turn the floor to Emílio Sanches to begin the presentation on the results. Thank you, Thomás, and good morning, everyone. First of all, I would like to thank you all for joining us today with the update on the figures for the third quarter of 2025 of Estapar. We will refer to the highlights as we always do, final comments, and then we will open for Q&A. And that's when we have the opportunity to talk to you, investors and everyone who has questions about the results of the company. So starting with the highlights on page 5, and then Daniel will give us more details on the results. We had a record revenue, R$486 million. This is a very strong growth for the company. We were very pleased, 25% growth vis-a-vis the third quarter. And all of that stems from new businesses. We had 30 new inaugurations this quarter. And the dedication of our operations team was unparalleled. We have a very strong discipline in all variables, be it revenue, costs, and all of that, having the growth of the company in mind, as we have always mentioned. EBITDA has followed the revenues even a little bit greater, over 21% this quarter, almost reaching R$100 million. We were even frustrated because we didn't hit the mark of 100 million, but 100 million is right around the corner, and we will soon be able to announce that number. Net income, we are reducing our losses. We've been reducing in the past quarters. This net income is even better now, BRL 7.8 million, which is a significant growth quarter-on-quarter. We can say that this will be a profitable year for the company. In the past years, maybe this will be the first where we will post profits. This is very important for the company because our investments are paying off. Our financial discipline is already returning revenue, even in terms of depreciation and amortization. As a consequence, the entire work done by Daniel's team concerning our debt, this certainly reduced the cost of debt regardless of this high rate of the Selic. Despite all of that, we're able to help the company to grow further. We reached CDI plus 4.5, and for those of you who have monitored us for a while, this is quite a significant milestone. This happens in many other areas of the company. We are also reducing our net debt, and we are very pleased with this result. We had 30 inaugurations. We will elaborate more about it. This was a very strong quarter together with our commercial team. We are doing some excellent work throughout the country. Therefore, we are still very much motivated, and the way of working that we adopted in terms of our operations team, commercial team, back office, they are working very much in tune. We hope that this is the culture going forward, growing inaugurations quarter-on-quarter and posting consistent results going forward. Digital and electromobility revenue. These are two business lines that we've been supporting quite a lot. Zul+ is our digital platform, posting good results for us. We have been posting consistent growth without any crazy stuff, as many startups sometimes do. We've been posting growth and growth, but with a lot of responsibility. We're not spending a lot of money with marketing, but nevertheless, we've been growing a lot. We grew almost 20% vis-à-vis the previous quarter, and all of the revenues coming from digital products already reached BRL 26 million. Electric, 42% growth, reaching BRL 6.5 million. The numbers are still timid, I would say, vis-à-vis all of the millions of our revenue, but this is just part of our mid to long-term strategy, being even more present in these areas. Now, moving on to next slide 6. Here we show some operations that we started throughout the quarter. It's a challenge to open 30 new operations. It's not just the work that we do with the commercial area, but on average, it takes 10. We do 10 operations every month, and they are scattered all over the country. You see that here we have Brasília, São Paulo, Rio, Santa Catarina, Bahia, and Salvador. So we have operations throughout the country. Our team in all of the areas in charge of the operations is still the same, but covering a large spectrum in the country. I know that we always want to open more operations. When we do 20, we think it's not enough, then 30, we think, well, maybe we could do more. So we're always willing to open more operations to keep the pace of growth. We hope to continue with this pace of openings. It is not easy, but we are very pleased with the results for this quarter, and very soon, we hope to even post better numbers. Now, page seven. Here, we give some visibility about the things that we believe are important. Shopping malls, they today account for 90 operations, slightly over 10% of all the numbers of operations of Estapar are located in shopping malls. The important thing here is to show the quality and the size of the malls. We just inaugurated in the fourth quarter. This is recent. This will not impact the numbers from the third quarter, but we just opened at Shopping Aricanduva and the new shopping mall in Ribeirão Preto from the same group. We were chosen to operate the parking lot at that mall. We already operated at the Interlagos mall. We have been there for quite some time. With the efficiency and quality, and the trust they have on us, that is what led us to be chosen to operate that Ribeirão Preto mall. Shopping Center Norte is one of the largest shopping malls in São Paulo and Brazil. Shopping Center Norte, we have been with them for a while, and this was a good opportunity for us to show how well we operate. This accounts for about 21% of our revenue, and we have almost 84,000 parking spaces. This is just to show you the level of assets that Estapar manages, not only in shopping malls, but then I will show you sports arenas, hospitals, et cetera. Now, moving to page eight here, I will give you an update on Zul+. This is our digital platform. We reach 8.3 million users. This is a very cool number. We believe that this number can surpass 10 million users next year, and this is part of our goal. We will approach almost 9 million by the end of the year. We are very excited about this growth. It is a sustainable growth. It is a gradual growth, but our operations, be it Zona Azul or Estapar operations, we are constantly motivating people to reserve parking spaces, pay for traffic tickets, et cetera. We are growing in many fronts, and this accounts for 20% growth in Zul's revenue. This revenue comes from digital products. It is not Estapar just to pay for parking, but digital products linked to that generates this result in the revenue line, which is growing year-on-year. We had more than 16 million transactions in 3 months. People paying for Zona Azul, people hiring insurance, Estapar, meaning that there were a lot of transactions that allowed us to reach that 16.9 million, almost 25% growth vis-à-vis last year, and this shows how strong we are in terms of tackling this digital world, and we are very pleased with the numbers. The total revenue of the company that also includes parking lots that, through Zul, already accounts for 22% of our revenue, and this comes through the app. This includes Zona Azul revenue, clients that reserve parking spaces in a sports arena or at the airport. Through the app. The number also includes Zul+ accounting for 22.2% growth. Hopefully we very soon reach the mark of 30%. Zletric on slide nine, we have been updating you on that. We reached 6.5 million BRL in the quarter. We grew almost 43% organic inclusive growth. We have no extraordinary things. We also have EV charging station. We almost have 300 and some EV charging stations in this third quarter. We are present in 85 municipalities, and the number is consistently growing. We have 59% of the company. Our partners are really nice. Now moving on to page 10. Here we have Pedro. He is Zletric's partner and CEO. We are working together. These operations are not only inside Estapar, but they are present in many other locations. We have hubs outside Estapar. We just inaugurated a very cool hub in Porto Alegre. We also have charging stations in shopping malls that are not necessarily operated by Estapar and even in parking lots not managed by Estapar, but also in residential condominiums. This is a partnership we did with VoltBras that doubled the possibility of Zletric customers charging their cars through the Zletric app. More and more, we are giving our clients other opportunities so the Zletric customer is not just restricted to Zletric's app. We have now interoperability together with VoltBras reaching 2,500 charging stations, electric charging stations, and this facilitates the lives of our clients. Of course, we have two kinds of clients, the clients that are B2B and B2C clients. B2C clients are those that use some sort of Estapar service, Zletric being one of them. We are very pleased with our partnership with VoltBras, and we hope that we will grow more in the future with more partnerships and further growth to facilitate the lives of drivers. Now moving on to page 11. We talk a lot about numbers here, right? Companies that are very disciplined in financial terms, sometimes they do not have a keen eye on people, but this quarter we received the GPTW seal. This is important not only because of the seal. There are 7,000 Estapar workers that go through this survey, and we extract a lot of information because what we want is to improve our operation. Sometimes we get some criticism, we get some requests for improvement. We also get a lot of praises, and that's what help us to improve and to be better prepared, while at the same time we keep very stable turnover, which is not easy. Companies like Estapar, we have to deal with turnover. So when we can manage turnover and keep it under control and retain our employees, that makes us very pleased. We are very happy with that certification. We think that this mix of people plus discipline and well-orchestrated processes together with innovation is bringing good results to the company, employees, and as a consequence, of course, investors. Now I'll turn the floor over to Daniel to go over the numbers, and then I'll come back with the final remarks. Daniel, over to you. Thank you, Emílio. Good morning. Once again, it's 11:17 A.M., and I'm here live. Again, I'm very proud to present the results of this third quarter of 2025. This was another record quarter with important significant improvements in our fundamentals. These results are not only built by the management but built by all of our 7,000 employees that are scattered throughout the country. Therefore, we are very proud to present our results starting now on slide 13. We say here that our portfolio there reached 804 operations in September and 520,000 parking spaces. We grew 10% year-over-year and 30,000 parking spaces on an annual comparison. All of these parking spaces are mostly concentrated on Leased and Managed. I would also like to emphasize that long-term contracts and on-street concessions also posted growth. In the municipality of Mauá, that was something that happened at the end of last year, and this is certainly contributing to our results in 2025. Long-term contracts, for the second quarter, we have been posting growth of 5,000 parking spaces. This is a segment where we resume growth, and we are growing with everything in place, with discipline in the allocation. We will be able to prove that we posted very healthy growth, especially when we talk about net debt and EBITDA. I always explain, what do we mean by churn of 0.5% in the quarter? What do I mean by churn? We lost some small operations where their results were not very relevant to our portfolio. It is not just enough to grow, but we have to grow and at the same time maintain our contracts. We have been very successful in our renewals. Moving to the financial part of our results on slide 14. As Emílio already said, we posted net revenue of BRL 486 million. We almost grew 22% quarter-over-quarter, and this growth includes the growth of operations quarter-over-quarter. It comes from new digital revenues. Estapar posted 22% of our revenues have to do with Zul+ app. I would also like to highlight a record number. For the past 14 quarters, we have been posting growth. 14 quarters means almost four years, three and a half years. In 2022, we had 650 operations. Now we have 804 operations, and the results are increasingly healthier. I think this is important to mention because this is part of Estapar's trajectory over the years. Here we talk about results after our cost discipline management. We posted BRL 130 million. We grew 21% on a quarterly comparison, and we were able to stabilize the gross margin. This gross margin stabilization is related to Leased and Managed segment. Typically, this segment posts lower margins when compared to other segments because we allocate capital. This is a trend that has been going on for a few quarters now, and we will maintain a very healthy portfolio mix in terms of operating leverage. This same behavior is also expected for EBITDA. Moving to the next slide. Adjusted EBITDA, we show that we have a better cash generation that reached BRL 96.7 million in the third quarter of 2025, growing 25% on a quarterly comparison. Again, we were able to stabilize the EBITDA margin, which grew almost 20%, that reached almost 20%. This is the same trend and the same explanation that I gave before when I talked about the gross profit. Moving to the next slide now, EBIT. We have operating costs and admin expenses. We have expenses with management. Not only we are posting nominal growth, but margin growth. Adjusted EBIT in the first quarter was BRL 53 million, and now we are posting over 50% growth on a quarterly comparison. Also we posted growth quarter-over-quarter. We went in 2022 with a margin of 1%, and now our margin is close to 11%. This is the result of a growth with a lot of capital discipline. Moving on to another KPI that we say, not only this is a goal, but it is an obsession by the company. Here we are posting structural and sustainable growth in net income. Our net income was BRL 7.8 million, so we grew 150% year-on-year. When we look at the next slide to the right, we reach BRL 8.3 million growing No, we grew. He corrects himself. BRL 22 million growing 8.3%. The company is in a profitable trajectory, and this is what we expect going forward. Company is growing and growing in a very healthy and profitable way. Now moving to cash and debt management. I will start with the cash flow. We started the cash with BRL 324 million, and we ended with BRL 338 million. This result stems from strong EBIT cash generation with around BRL 100 million, and we had a strong variation of working capital. This variation stems from a very well orchestrated operation from Treasury, and then we prepaid receivables, and now we are reaping the benefits of our digital operation. These are operations that have very attractive costs. Not only that, but this helps us to fund our growth. After operating cash generation, we had BRL 40 million in CapEx. On average, this is the average of the past quarters, again, because of allocation. We also had net debt, which means debt amortization, and this is part of liability management, and we will talk about that, and also interest payments. As I always say, Estapar never failed to pay any interest payments. We always honored our financial commitments. This is what we have been doing. Because of that, we have been very successful with liability management, which is a good thing for our creditors. Now moving on to slide 20. Here we show the liability management result. This is some work that started more than two years ago, and this will continue going forward. It is easier now, and we are generating even more results for the company. What do I mean by results? Results meaning stable debt position, helping the company to grow. Our net debt was BRL 748, BRL 749 million. There was a slight reduction quarter-on-quarter. We also reduced the cost of debt, meaning that we were able to swap expensive debt by cheaper debt. CDI plus 4.5 in 2023. CDI plus 3.8 and now currently CDI 6. Plus 1.63. But we still see room for improvement to compress the spread thanks to our credit improvement vis-a-vis the capital markets. Finally, which is part of the liability manage, we have to maintain the debt at a stable level and also maintain maturities under balance with good operating cash management. We ended with BRL 338 million. Short-term growth is BRL 220 million, and this is very well distributed along the next four years. Now, moving to final remarks. Again, I would just like to thank you. This result is built by the company, and the company is posting solid numbers, focusing on digital. I will see you again during the Q&A session. Over to you, Emílio. Okay, for our final remarks, maybe a summary of what we said here. This was a good quarter. Some investors sometimes ask us whether there will be recurrency, whether this would be SFI's routine going forward. It is hard to say that for sure, but we ended the quarter with excellent results. Therefore, all of us, we believe that we still have a lot more to do. We have a lot more opportunities to pursue. The market is large. We don't think even though we grew a lot, we still have a lot more to go after, but with very, very fierce financial discipline. Be it for us, for those who hire us, we see a win-win relationship. It's not that we always or only have the best financial proposition, but money is a commodity, so anyone can do it, not only us. But all the efforts we put on it, all the technology that we have, people recognize that. That's why it's easier for us to renew contracts and to engage in new ones. This is, in our view, is a great growth potential. When Daniel referred to our cash position, a company like ours having almost BRL 350 million in cash, people speculate a lot. Are you going to pay the debt or are you going to invest the money? A little bit of both. We would just have to see what's best for the company. Certainly, it's always good to pay debt, but also it's good to invest in good assets that can give us a return in the short and mid-term. We will not let go of our financial discipline. We will look at all of the investments line by line. I do that and Daniel and everyone, all of the officers discuss extensively all of the opportunities. We also have a financial committee, and so we give them all the information, and at the end, there is the board that ultimately approves investments if the investment makes sense. This alignment between all the parties involved is what is generating good results. Therefore, we believe that we will have a lot of other good quarters ahead. The commercial area is moving quite well. Operations, back office is moving well. a lot of people ask us, "What is going to change? What is going to change your business?" We don't know. We don't have the answer. We still see that there are many opportunities ahead. Like any other company, we are working hard and finding opportunities to generate further results, but keeping an eye on our core business, keeping an eye on return on investment, and focusing on B2B and B2C customers. I think now, Thomás, we can go to the Q&A session. We already got some questions, but I just hope that we come back in March and we'll be able to show you even better results. Thank you. Thank you, Emílio. Now we initiate the Q&A session. I would like to remind you that to send questions, just click in the Q&A icon located in the bottom of the screen and write your question to join the queue. Please ask all of your questions at once. Our first question comes from an individual investor. "I would like to understand that the strong performance in working capital and the strong cash generation in the third quarter are sustainable, or whether they include non-recurring factors that will not be repeated in the coming quarters." Well, thank you. Thank you for the question. At the intensity of the third quarter, this was a one-off effect. We will have the opportunity to repeat that, but at that level or with that intensity, it's a one-off thing. This was an operation related to prepayment of receivables in our digital portfolio. In liability management, we are constantly seeking for other alternatives, bilateral, structure instruments or incentivized instruments. But in this case, it was a trivial market transaction. We found some interesting opportunities for both assets and liability. This is what led us to post those results. But when I say that we could expect good management of working capital is because we see a lot of opportunities going forward. We see opportunities in the different avenues of receivables and sales, and we still have some work to do with accounts payable. When we look at the company's management on the operating side, we have a very strong back office team that are constantly looking for better opportunities for the business. I would like to congratulate our team in charge of financial management, because I think in the future we would have other good numbers, but maybe not at this intensity. Just to add to Daniel's answer, indirectly answering your question, there was a one-off effect in relation to the cash position, but not in terms of EBITDA. The company's EBITDA is recurrent, so from now on it will be at that level. Next question, also from an individual investor. What are the main strategies or tracks that the company needs to follow to improve the liquidity of its shares and to attract more institutional investors? This is a recurring question. We get it all the time. I think there was a move among shareholders which I know that the controlling shareholder is very pleased with the results of the company, and our mandate in the past years was to generate more return to shareholders, and that's what we always tried to do. We had a very high debt in terms of EBITDA that was significantly reduced, so we are comfortable with our leverage position. We're also comfort when it comes to operating leverage. We are on the right track, and we are constantly generating value, and there are more and more investors wanting to join us, and we are certainly working hard. We cannot give you any more concrete information, but I think soon enough, we may have some further opportunities, or certainly the capital market today is not helping very much. There are three factors. The first factor is that the company is an interesting company, and this is the work we are doing. I am very comfortable to say that we are on the right track, and we are a company where investors would like to be. The second factor is that the market has to be open for new opportunities, and we have to be prepared. The third aspect is that investors and ourselves are working to put together a strategy. We are talking to the banks that support us, but maybe soon enough, we'll be able to give you some more news. But in the very short term, there is nothing to do right now. Next question from Leandro Lima with Sunny Capital. What is the potential additional revenue that Estapar estimates for Zletric after this partnership with VoltBras for the next five years, considering the roaming rates and increase in occupation in the 13 owned stations? Zletric is a company that we look in the long run. This is a very good question because we expect. I do not know what the answer will be for the next five years, but we really want to double the revenue of this company very quickly, be it through this partnership with VoltBras or with other new partnerships. I am looking at it pretty much on the long run. This is a company, we look at it more as a benefit for the end user, certainly with financial discipline, generating returns. Just to give you an idea, up until a year ago, 80% of the EV charge was for free. It was more like a benefit. It was given for free, but today we changed that. 70% is already charged and 30% is still for free. We have the opportunity to charge 100%, so it would no longer be free of charge. It was a benefit, but things are changing and this helps us increase revenue. We hope that growth will come, but I do not have any numbers to give you right now. Maybe in the future, we will be able to give you more color about it, but we look at it as a long-term opportunity. There is another question that I think I can answer. I would not look at Zletric's revenue now as being a very important variable when it comes to modeling, at the moment at least. Next question on the same topic from Jose Guilherme Vieira, an individual investor. Recently, WEG evaluated Tupinambá with a valuation of BRL 70 million, a company that has BRL 8.6 million in net revenue in 2024. Zletric with BRL 8.6 million of net revenue projected for 2025. In the next months with the partnership with VoltBras, maybe we will be able to offer the same interoperability model and following on the footsteps of Tupinambá. Given this positioning, what will be the valuation that Estapar estimates for Zletric today? Thank you, Jose. It is just like I was saying, I will just repeat my previous answer. We are much more focused on it as a service that will generate opportunity rather than the valuation. Obviously, this is part of our desire, but this payment of WEG of BRL 70 million, we see it with good eyes. Even though hybrid and electric cars are selling more and more, there is still a lot of room in the market for companies like Zletric. Interoperability is something that we see a good future because it is gaining momentum. We are much more focused on this network or building that physical space because this is our major asset. Estapar's asset is crucial to us, not only in terms of chargers, but other fronts that we can speak about in the future. We see this as a huge opportunity. I would say that we have a baby that is being nurtured, and as the market grows, this could be very valuable. It could be a very good opportunity, and certainly, this could help us increase our valuation. Next question is from Eduardo Elizo, analyst of Capital. "How is the dynamics of transfer tariffs as a whole? If you could you give me some more light for Zona Azul? Well, thank you. When you talk about tariff, I think you are talking about the tariffs for the drivers. The concession contracts, in general, they have provisions for inflation transfer every year. This happens in São Paulo every January. The tariff is BRL 6.66, which year-on-year, this number reflects the inflation. We follow the precise execution of our concession contracts. Next question from Luísa Braga, individual investor. Do you have an estimate of the number of new operations for next quarter? Well, thank you for your question. We do have an estimate. We have desires, we have willingness, dreams. We wish we could open 100 operations every month if possible. The sky is the limit. We want to grow, and the company has to generate value, be it to shareholders and also to the team. This is a constant work, but there is no absolute number. Sometimes operating one operation is worth more than opening 10. The number of operations is important, but this is not crucial to our business model. There is no estimate or no goal saying that we are going to open up 50 or 100. But for those who know me well in the company, we say that our wish is to double the company. If I have 800 operations, I want to turn that into 1,600. If that will happen in a month, two or six months. But the culture is grow, and growth with discipline, while at the same time creating value. We now conclude the Q&A session. The IR team remains available to answer any additional question. We would like to inform you that our next earnings release presentation related to the fourth quarter of 2025 will probably happen in March of 2026. Now I turn the floor to Emílio for his final remarks. First of all, I would like to thank all of our IR team and our 7,000 employees who give us daily support. The company operates 24 by seven. We have many operations that are open 24 hours a day. The company is constantly on. I would like to say thank you to those who hire our services because for another quarter, they believed in us, and I would like to thank all the investors that have joined us today. Thank you all very much, and I hope that in March, we will be able to see you again with reporting better results yet, and thank you for your support. Creditors as well, together with Daniel, supporting us and the creditors help us also to reduce our cost of debt. The support we get from everyone, suppliers, employees, investors, clients, they are helping us grow. We have been promising that it was possible, and now we are showing that indeed it is possible when we believe we are pleased with the results, and we hope to keep the same pace going forward. Thank you all.