Good morning, and welcome to EcoRodovias' first quarter of 2026 earnings presentation. With us here today are Marcello Guidotti, CEO, and Andrea Fernandes, CFO. This presentation is being recorded and all participants will be in listen only mode during the presentation. After that, we will begin the question and answer session for analysts and investors only and further instructions will be provided. The slides of this presentation are available on the company's investor relations website in the results center section at ri.ecorodovias.com.br. After the end of the earnings presentation, the recording will be available in the same section. Before proceeding, we would like to clarify that the forward-looking statements that may be made during this presentation relating to EcoRodovias' business prospects, projections, and operational and financial targets are based on the management's beliefs and assumptions, as well as on currently available information.
They involve risks, uncertainties, and assumptions as they refer to future events and hence depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operating factors may affect the future performance of EcoRodovias and lead to results that differ materially from those expressed in such forward-looking statements. I will now turn the floor to Andrea Fernandes, who will discuss the results. Andrea, you may proceed.
Good morning. Welcome to EcoRodovias' earnings presentation for the first quarter of 2026. We thank everyone for attending. We start the presentation with the highlights of the quarter. Consolidated traffic grew 20.6% in the period, while comparable traffic advanced 0.4%. For another quarter, we continued with the growth of adjusted cash costs at ex-Ecoporto below inflation, ending the period with an increase of 3.2%. Operational performance and efficient cost management boosted adjusted EBITDA, which reached BRL 1.4 billion. Due to the termination of the Ecovias Sul concession agreement, we had the full amortization of the remaining balance of the intangible non-cash asset.
As a result of this amortization, we had a net loss of BRL 10 million. Excluding Ecovias Sul's results, net income in the quarter would be BRL 77 million. Another highlight in the period was the investment of BRL 974 million. We won a new concession, Rota das Gerais, located in the state of Minas Gerais, which has synergies with Ecovias Rio Minas and Ecovias Norte Minas, connecting the Southeast and Northeast regions of the country. Finally, we highlight the approval of the dividend payment of BRL 210 million related to the 2025 fiscal year as from June 12, 2026, as well as the comparable performance of vehicle traffic in April, which grew by 5.1%. On slide five, we present the operational performance driven by the 1.5% growth of heavy vehicles, especially on Ecovias Capixaba, Ecovias Norte Minas and Ecovias Rio Minas.
The growth of comparable traffic in the first quarter was influenced by a stronger comparison basis in 2025, the more intense volume of rainfall in the 2- first months of this year, and the delay in grain harvesting. Even vis-a-vis this scenario, we already observed the reversion of this trend in the month of April, when we posted an increase of 5.1% in comparable traffic. Moving on to slide six, we show adjusted net revenue of BRL 1.8 billion in the quarter, an increase of 8.5% due to the growth in vehicle traffic, toll tariff adjustments, and the start of collection at Ecovias Raposo Castello and three new plazas at Ecovias Noroeste Paulista.
Although affected or reduced by the termination of the concession agreement of Ecovias Sul. For another quarter, the results of our innovation and efficiency initiative, underpinned by the, a digital operating model, ensured that the adjusted cash cost growth remained below the inflation of the last 12 months, reaching 3.2%. This raise is mainly due to the increase in personnel due to the collective bargaining agreement. Finally, the chart on the right shows that the evolution of revenue combined with efficient cost management caused adjusted EBITDA to reach BRL 1.4 billion in the quarter, with a margin of almost 78%. On the next slide, we present the evolution of the quarter's results.
Starting from the net income of the first quarter of 2025, we highlight the EBITDA, which was driven by operating performance and cost management. As mentioned before, in this quarter, we had the full amortization of Ecovias Sul's intangible assets, with a negative effect of BRL 151 million in the results. In addition, the increase in financial expenses due to the funding contracted for the CapEx execution have also contributed to the reduction of results in the period, leading to net loss of BRL 10 million in the first quarter of 2026. Excluding the results of Ecovias Sul, net income for the quarter would have been BRL 77 million. On slide nine, we present some highlights regarding the evolution of our work. In the quarter, we executed BRL 974 million in investment.
Highlights includes the progress of works of approximately 45 km of additional lanes in the regions of São Carlos and São José do Rio Preto in the interior of the state of São Paulo by Ecovias Noroeste Paulista. The road widening works in the states of Goiás and Tocantins by Ecovias Araguaia. Moving on to slide 10, we ended the quarter with consolidated leverage of 3.9 x. The leverage of EcoRodovias Concessões e Serviços remains stable at 3.7x. We highlight the percentage of gross debt index to inflation, which reached 72%, the same index of the tariff adjustments of our concessions, reinforcing the natural hedging effect of results. On the next slide, we present a robust cash balance in the quarter, as well as the gross debt amortization schedule.
We also highlight the lengthening of the debt profile after the conclusion of long-term financing, which resulted in the improvement of the average maturity to 7.9 years. On slide 13, we present the main sustainability highlights of the period. In May, we were selected for the 15th consecutive year to be part of B3's Corporate Sustainability Index portfolio. In addition, we obtained the preliminary license for the project of the third lane of the Imigrantes Highway, an important step for the delivery of the studies to the state government, reinforcing the environmental feasibility of this project.
Finally, we'd like to highlight the advances in the tests of using B100 biodiesel in the fleet of Ecovias Noroeste Paulista, which reached the mark of 100,000 km driven. This result demonstrates, in a preliminary way, the technical and operational feasibility of using this biofuel as an alternative to fossil diesel. We close this presentation by highlighting that the recent win of the Rota das Gerais concession is in line with our strategy of selectivity and capital allocation, prioritizing synergistic assets adherent to our capital structure and with the potential to maximize shareholder returns. We will continue to focus on the execution of our investments so that the works delivered contribute to the improvement of fluidity and safety on the highways and boost the growth of vehicle traffic.
We will also remain attentive to the opportunities for contractual amendments within our current portfolio. We would now like to move on to the questions and answer session. Thank you.
Thank you. We will begin the questions and answers session for investors and analysts. If you would like to ask questions, please click Raise Hand. Our first question, Rafael Simonetti, UBS BB. Please, Rafael, you may go ahead.
Hello, Guidotti, Andrea. Thank you for taking my question. On my side, the question's about CapEx. I'd like to know if the execution for the first quarter was in line with your plan, and what we can expect for the coming quarters and the year overall in terms of ramp-up evolution? Thank you.
[Non-English content] Hello, Rafael. Good morning. Thank you for the question. CapEx in the first quarter was slightly below our forecast for the first two months of the year, especially in the region of Tocantins, Goiás. In the center of Brazil, there were a lot of rainfalls. The volume was high. That delayed some work sites. Because of the type of works being done, rainfall doesn't allow us to do. This is already being recovered. We aligned the guidance given of BRL 5 billion to the end of the year. The work sites now getting into the dry season will be able to recover for lost time.
Thank you.
Thank you. [Non-English content] Next question, Matheus Santana, Bradesco. Please, you may go ahead.
[Non-English content] Hello, Marcello, Andrea. Good morning. Thank you for taking my question. I have two. First, we saw very strong trends of traffic in April. When we look at the year-on-year growth, among all the months, it was the strongest. What do you see improving for the platforms to be stronger in April? What should we expect going forward? The second question was just to understand the progress on the discussions of the amendment for the third lane at Imigrantes. These are my two questions. Thank you.
[Non-English content] Matheus, about traffic, January and February, we had more rainfall, so the comparison base for last year was strong. Last year, 2025 compared to 2024 had grew for 6% and still we remained at positive levels. There were a lot of rainfall in the region, and it's recovering. April was a month with some important holidays. May, we're seeing as well that started well with light vehicles, heavy vehicles as well. We maintain a trend very much aligned to the history. Certainly, the 1.5%, 1.8%, and depending on the period, we expect that during the year will be around that 2.5% consolidated growth. The other question about the third lane. Something new that Andrea mentioned that's extremely important, that's obtaining the preliminary license.
That's an essential landmark because starting from that, meeting all the conditions, they issue the permanent license and the projects and pricing are at the later stages. We have until June to deliver to turn in everything. We may be able to turn in ahead of time. The 1st part is concluded on the obligations of the project. Environmental license conditions are met. Starting from that, we'll discuss the way to execute it and how this will be rebalanced. This investment will be rebalanced.
Thank you.
[Non-English content] Next question, Julia Orsi of JPMorgan. Please, Julia, you may go ahead.
[Non-English content] Hello, Andrea, Guidotti. Good morning. I have two points. First, a CapEx follow-up. We've been seeing an increase in recent years in the price of diesel and CAP. We'd like to understand a little how much of your CapEx contracted for this year, what will be the exposure for these two lines? If there's any estimation of an impact in the balance for this year considering the increase on these two inputs. Another point is a follow-up about the rebalancing. In addition to the third lane, I understand that there are other discussions that are occurring in parallel. Can you give us more details about these processes, thinking about the size of this project as well? Thank you.
[Non-English content] Hello, Julia. Thank you for the question. About CapEx. This year, I think we have everything almost pretty much contracted. Around 80% of our CapEx is already contracted. The inputs that are affected by the price increases are CAP, the petroleum, asphalt, cement and diesel that represent about 9% each of our total CapEx. [Non-English content] They had an increase in the impact we estimate for these two already considering the adjustments that happen now. As if they remained stable until the end of the year, there would be an impact of around BRL 100 million until the end of the year of these two increases on the CapEx of BRL 5.4 billion.
This type of increases, these outstanding increases due to geopolitical aspects that already occurred in the past and will be analyzed by the granting authority for potential discussions of rebalancing. About the question on contractual rebalancing, we have the ones here in São Paulo that have already been informed, the rebalancing due to the pandemic, to COVID. We also have Araguaia, a rebalancing to be received this year on the inputs that impacted the Araguaia contract. It was an agreement that started right on the pandemic, so it was more affected. We are already at the end stages of negotiating the rebalancing package to receive this rebalancing. Araguaia has an escrow account that is the protection of the contract, so it's hypothetically a cash rebalancing. São Paulo, Araguaia, and I don't think we have any other rebalancing being discussed.
In addition to the contractual amendments, the third lane obviously is a study that will be rebalanced and there are other discussions of small investments in Ecovias and other places that will be objective to contract amendments and rebalancing it.
Thank you. Very clear. Have a good day.
[Non-English content] Next question, Pedro Tineo, Itaú BBA. Please, you may go ahead.
Thank you for taking my questions. A simple question on my side. Looking at the scenario of the increase of fuels, I'd like to think how you're understanding the movement of your routes demands and traffic. To underscore a little bit the scenario of the second half of the year with the elections, the World Cup, what can we consider in terms of potential benefits or obstacles for some of your routes, some of your highways? Thank you.
[Non-English content] Again, we are seeing traffic recovering in April, beginning of May as well. I think that the impact of diesel will be in the freight costs, will be diluted throughout the year and then it will be passed through to products and inflation. We're not seeing any type of abrupt moves outside of expected. We have been going through, over the past few years, through many situations of price shocks. They're limited. Brazil has its matrix and its use of diesel. We don't see any major hiccups, and we don't expect any hiccups considering what's coming again. Elections in Brazil happen every two years, pretty much. It's quite normal. Again, we expect the traffic until from now to the end of the year in line with previous years. No need of 1.5%, 1.8% of the GDP.
Andrea also mentioned that there may be minor effects, the fuel being more expensive may discourage traveling in regions that require airplanes. People will replace flying to traveling to regions that are accessible by highways. There's a possibility of increasing the traffic. There's also the expectation of El Niño that may generate heat or hot weather in the region, there may be a hotter winter like we had two years ago. These dynamics, at the end of the year, one kind of offsets the other. We lose on one side, win on another. That's good to have such a diverse portfolio, such a resilient portfolio. I think we are reasonably optimistic.
Excellent. Thank you, Guidotti.
[Non-English content] Our next question, Gabriel Frazao, Bank of America. Please, Gabriel, you may go ahead.
[Non-English content] Good morning. Thank you for the opportunity here. I have a question about the evolution of CapEx to realize, especially in two concessions, Ecovias Norte-Minas and Ecovias Imigrantes. We noticed an increase in this CapEx to be realized that Norte-Minas close to BRL 400 million and a drop in Imigrantes close to BRL 360 million already excluding the amount disbursed in the quarter. If we could hear from you, if these adjustments reflect any adjustments to inflation or if it was just a mismatch of this CapEx. Is it the write-up of those investments in the obligations like the grants or an ITR? That would be my question..
[Non-English content] Thank you for the question. You are correct. These are two moves that are unrelated, although they are happening in the same quarter. We've been monitoring at Ecovias dos Imigrantes. They've updated in the last few years all of the IPCA balance. That ended up creating an additional buffer. We reviewed the CapEx and readjusted those flows at Ecovias dos Imigrantes. They're longer. It's almost 10 years of concession. The CapEx is well known. We made this adjustment of the balance at Imigrantes. At Norte-Minas, it's a different situation. We were monitoring. Norte-Minas concluded all its contractual obligations. The CapEx at Norte-Minas was delayed in recent years.
We've had discussions of rebalancing and adjustments of CapEx that have been concluded. We got it right with this a leap in CapEx by Norte-Minas until the end of the concession. In terms of repayment, it's a relatively small amount because it's spread out throughout the lifetime of Norte-Minas. We understand that the investment balance of, at Norte-Minas is that. It's two separate moves that are not related. Yes, there have been adjustments in these two concessions this quarter.
Great, Guidotti. Thank you. That's very clear.
[Non-English content] The questions and answers session is concluded. We would like to turn the floor to Andrea Fernandes for the company's closing remarks.
[Non-English content] I would like to thank everyone for attending. The team and myself remain available for any questions you may have. Have a great weekend.
[Non-English content] EcoRodovias' earnings conference call is concluded. We thank you all for attending. Have a great day.