At the company and it's a pleasure to be here with you. Next to me I have Henrique Fernandez, our CEO, and we're going to get started with our earnings call. This video call is being recorded and will be made available on the company's RI website, and you can also find the slides there. Right now you can already download the presentation, and at the end of the conference you'll be able to download the video.
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The information in this presentation and forward-looking statements that may be made during the video conference regarding the company's business perspectives, forecasts, operating and financial goals are based on the beliefs and assumptions of the company as well as on the information that the company has available. Forward-looking statements are no guarantee of performance. They involve risk, uncertainties, and assumptions as they relate to future events and therefore depend on circumstances that may not occur. Investors should understand that macroeconomic situations, the market, all could impact Intelbras results and lead to materially different results than have been expressed in the forward-looking statements. Now I'd like to start the presentation, and then I will give the floor to Henrique.
[Foreign language] This is the disclaimer, and we'll start with the financial review.
Now we see that revenue has gone down quarter-on-quarter as well as year-on-year, and that is in line with what we had already said. We're prioritizing profitability and return on capital, and the EBITDA sort of accompanies this decrease in revenue. We see an improvement in margins, and the net income has substantial increase, almost BRL 150 million in the quarter. That's 15%, or rather 14%, higher year-on-year. That really shows how wholesome our operation is. Part of our operating revenue can be seen in the net income, and that impacts the operating net income. We'll talk about this in the presentation. As we see our ROIC going down, or we had seen it going down for a while, now it's going back up almost 90 bps. We expect this to continue in the future.
In this first quarter or rather in this third quarter, I thought it was important to talk about the margins on top of the indicators that we normally address. They really show the evidence to the decisions we had made. We see that the gross margin has grown year-on-year as well as on quarter. On quarter is 30.9% and the EBITDA margin is 12.8%. That is again in line with our history and very close to the 13% reference that we normally have in the quarters. There is a 70 bps rise year-on-year and also a substantial increase quarter-on-quarter, and the net margin is 13.2% which is higher than what we normally have. We see the margins really help us understand that the path that we have chosen is correct and that will continue to follow.
When we look at historical data, we see that we have about 20% CAGR and we have a 5% decrease in the first nine months of this year, mainly because of the decisions that we have made in the first nine months of the year and the businesses that we needed to reorganize. EBITDA has a bigger decrease, about 20% in the last nine months. That is also due to this financial effect in the breakdown, the composition of the expenses. We have discussed that before, we talked about it in the second quarter and we'll talk about it in the third quarter. Now we see the deleveraging also being offset and the expenses. It's clear that there is an impact of the lower gross profit even though we have a better gross margin.
We go from BRL 150 million- BRL 144 million in EBITDA, but we see that the margin improved substantially. Now when it comes to the gross profit, we see there is a growing trend. The third quarter is going up mainly due to the composition of the revenue, which is mainly driven by security, which does have a better margin. We see that the other segments are also now having a structurally better margin. We can't forget that we have the VP effect. We had discussed the VP effect in the second quarter and now we'd like to speak about it again in the third quarter because we see a similar effect in the third quarter as we saw in the second quarter. There's a financial variable that is part of the financial result and it's part of CPC12.
Every company that has revenue or procurement with a specified term will need to report that. We have this exa VP margin as a reference. Our gross margin will always be composed by the VP effect, and this is the gross margin that we present here. We see that this has been bigger than we normally see. This is the table that we showed in the past and again I correct myself. I was saying AVP, but it's actually PVA. In English, this is the acronym. We see the gross margin results in the third quarter as we saw in the second quarter. We basically see that we're refinancing our supplies. You've probably noticed that the payables have had an improvement as well. In the course of the quarter, we are better organizing our more or better financed inventory.
Soon we'll start seeing the 90 bps impact reducing as we see the Selic rate going down and the inventory being financed. This should start going down. We'll be keeping a close look on it. As for our three major business segments, that is Security, ICT, and Energy, I would like to highlight that Security accounted for 63% of our revenue. We see a 4.4% increase year-on-year. We see that the sell-in and sell-out sales are quite well in line with each other. Distributors have been reporting that activities are taking place. The turnover has been impacted by the more challenging macroeconomic scenario. It's not that Intelbras is struggling more than other players or that we're losing share to anyone. We see that the market turnover is slower. The small or micro businessman has been postponing investments and this is an impact on the turnover obviously.
Our market presence continues to be quite strong and quite relevant in Security as it has always been. Now as for ICT, we see that the revenue was impacted by more restrictive commercial policies. We had talked about this briefly in the second quarter. The ICT segment accounts for 22% of our third quarter revenue. This is very good quality revenue and it's important that we talk about it. We had a 6.1% revenue decrease quarter-on-quarter, but we have grown almost 6% when we look at the gross profit. The quality of the type of sales and commercial decisions have been correct because what really matters when it comes to revenue is the contribution for us to have the right results. The ICT revenue in the third quarter contributed more in the third quarter than in the second quarter even though it was higher in the second quarter.
We should also say that the other ICT businesses, what we've been doing with companies and structured cables, all of that is making very good headway. They have very good cross-selling effect with Security. Distribution has been selling really well. These are product families that we continue to invest in and we continue to see a positive development of the business there. Lastly, Energy accounted for 15% of revenue in the third quarter and it has a substantial decrease. This is what we had already talked about in the first and second quarters. There is a substantial decrease in revenue from major projects and off grid generators for the Amazon, for example. It is also a challenge when it comes to on grid generators, the rooftop generators, which is an important part of our solar strategy. We continue to prioritize profitability.
We do not aim at increasing market share, so we are not going to be wading into a price war here. What we have been doing, considering this context, is we have an internal work structure that will allow the business to deliver good results even if we do not see an expectation of revenue increase in the future. We again do not aim at increasing our market share here. It is at the right level and we need to have results based on the revenue that we expect to have and other businesses continue to perform as we expect them to. When we look at our cash performance, BRL 180 million cash in a company our size, our magnitude is really substantial when it comes to cash generation. In June we had slightly less than BRL 800 million and now we are above BRL 1.2 billion. Pardon me.
We see that the accommodation of the inventories and the financing have had their impact. We expected this impact to be seen in the second half of the year. We see this first impact in the third quarter, the first quarter of the second half. We had almost BRL 70 million paid in dividends. It was a payout of BRL 70 million in August. The balance is quite positive for this quarter. As for CapEx, we continue to grow CapEx in a more reduced fashion. We follow the history. Just before I give the floor to Henrique, I would like to mention a couple of perspectives that I deem quite important. We have been making decisions and adjusting strategies in the course of the past quarters. Some adjustments and definitions will continue to be made. We expect in the first quarter to have the company organized and everything completed.
Our expectation for 2026 continues to be very constructive when it comes to increasing profit and ROIC. There are some concerns when it comes to revenue performance. I know. We continue to see good performance in ROIC and profitability. That's what we expect for 2026. We have a solid position in the market and we have investments in innovation, in new portfolios. All of that continues to be made, but with a lot of discipline and at a pace that will allow us to see this constant development without major leaps forward, without any witchcraft taking place there. Right. We want to see the company growing sustainably in the coming quarters. That's what I had to say, Henrique. I'd like to give you the floor.
[Foreign language]
Thank you, Bruno. Good morning, everyone.
It is a pleasure to be here with you again for us to continue this conversation that we have been having quarter-after-quarter. We've always been transparent, consistent, and we've focused on the long-term perspective for Intelbras . When we look back and we think about what we said in the first and second quarters, we can see that there is a very clear narrative thread. In the first quarter, 2025, we spoke about the challenge of the transition, the implementation of the new ERP and how important it was for us to reorganize ourselves. In the second quarter, we underscored our message of discipline and of focus on ROIC and how important it was to prioritize profitability over growth. Now in the third quarter, we present the first concrete results of this strategic review that we have been conducting.
The third quarter was a period of focus, execution, and discipline. Revenue dropped. It dropped by 9.6%. That was due to the conscious decisions we made to prioritize profitability over volume. The outcome of this choice can be seen in our fundamentals. The gross margin was 30.9%. That's the best we've had in the recent quarters. The EBITDA margin was 12.8%, rising in spite of lower revenue, and net income was BRL 148 million. That is 14% higher year-on-year. Our ROIC resumed growth and is now 14.9%. In addition to that, we generated BRL 580 million in operating cash. That's a recent record and that shows that the plan is working and that we have a company that is lighter, leaner, more efficient, and that is financially solid. These results are the product of continuous structural improvement. We reduced expenses, simplified processes, and implemented a more rational capital management approach.
The impact of these measures will continue to show in the fourth quarter and it will be the foundation for the next cycle. Intelbras remains a growth-oriented company. Growth is part of our essence. It's part of our history and part of our entrepreneurial culture. We understand that true growth is the kind of growth that multiplies the value of capital, not merely the size of operations. When we look at our business segments, we see that we are on the right path. This is what this quarter shows in security. We stayed strong. We grew over 4% in the quarter. Even in a more timid consumer environment, this rate reflects the market reality, not a loss of market share. Our import and domestic production data confirm that there was no loss of market share. That is very important to us. There was no market share loss.
[Foreign language]
The market is slacker, slower, but Intelbras is closer to the channels and to the customers. We continue with our strong brand with over 98% presence in Brazil. Our ICT had both decisions made and the results show that they were the right decisions. In the second quarter we mentioned, as Bruno just said, we really underscored that we were reviewing our commercial policy and that we were prioritizing profitability. We can see the results, can't we? Lower revenue, the higher margins and gross profit 5.8% higher quarter-on-quarter. We sold less, but we sold better. This is very important. I was speaking to my commercial team this morning. This is a long term decision, but it demonstrates maturity and it preserves channel quality and capital discipline.
We continue investing in new ICT markets such as enterprise networks, where growth is more gradual, slowly but surely one step at a time. It's higher quality. Once you've really gained that ground, you're not going to lose it. In energy we see something similar. Lower volume, but better focus. The revenue decrease stems from two conscious decisions we made. First, we stepped away from larger projects that consumed capital but delivered low results. Second, facing pricing pressure in the solar market without wading into a price war. We continue to believe in the residential rooftop region generator market, but with a profitability mindset. The solar market is more stable now and we decided to be more prudent, maintaining a lean structure and healthy margins, the right structure for the right size of the company.
Other businesses in energy, such as UPS systems, batteries, EV chargers, there's room for growth there and we're making headway step by step. These product lines are important and they bring balance to the portfolio, keeping the energy unit relevant and profitable. Intelbras ended the quarter with BRL 1.2 billion in cash and is now operating with net cash again. Our working capital improved, our inventory is being adjusted, and CapEx, as Bruno just said, remains in line with the plan. Cash was primarily generated by the improved inventory turnover and the return of shipments to near normal levels. As for the dividend payout, our board always assesses the scenario and may consider a potential payout, always focused on creating value for the shareholder and, of course, preserving the company's sustainability. From a financial perspective, we have cash, we have liquidity, and we have governance. That's what matters.
These are three elements that really strengthen investor confidence and they allow us to look ahead with calm. ROIC at 14.5% resumed growth and the trend is to continue upward. This is a symbolic milestone. Return on invested capital has always been a key aspect of our narrative. Since the beginning of the year, it has resumed growth. That really shows us that the ROIC culture, which started as a concept, is now becoming part of our management operations and decision making. Of course, there is room for improvement from an operating perspective with expense decreases that were implemented in October and, of course, on the capital side with more efficient inventory and working capital cycles. This is part of our culture and our continuous drive for efficiency and process evolution.
When we look at the full three quarters of 2025, it's clear that Intelbras is more efficient and working more closely with the customers and is making better informed and more conscious decisions when it comes to capital allocation. We don't believe in transformational leaps forward, as Bruno said, but we do believe in the sum of many small, correct steps, small, consistent, disciplined steps. The third quarter shows that we are moving forward step by step, consistently. Intelbras is and will continue to be a growth-oriented company, but a kind of growth that respects capital, customers, and above all else, timing. Whenever we talk about more discipline, people may have that feeling. What about innovation? We continue to innovate. Having discipline doesn't mean we're giving up our dreams.
We continued investing in technology, developing new lines, testing models, connecting business units, but now with clearer criteria and a systemic view of how each initiative contributed to the whole. What really makes us stand apart from the rest is our competitive edge and the integration and interface of our solutions. When we enter a project, whether through a distributor, an integrator, or an end customer, we enter with a project. What we actually deliver is a complete ecosystem of security, connectivity, and energy. This integration is what allows us to stand out, protects us, and ensures that our growth is sustainable. We have a thorough ecosystem, a complete system that's very integrated, and very few players in the market can deliver that. This systemic view is a most valuable strategic asset, and it is the foundation for our long-term positioning. The third quarter, 2025, was a quarter of confirmation.
Confirmation that the decisions that were made earlier, difficult decisions that were difficult but necessary, and they were also difficult to execute. We see that they are bearing fruit. We're now harvesting the results of work built with patience, method, and discipline. Again, discipline. We have a clear, coherent strategy. We don't change our strategies every quarter. We don't look at short-term results only. We have a team that really believes and that executes with passion. We don't want to be perfect, but we want to be consistent. Consistency is exactly what we're delivering. Speaking about the fourth quarter and the future, the fourth quarter will certainly have new challenges, but we believe that we will have even better results. We'll reduce expenses, we'll simplify our portfolio. We began doing that in the second quarter, and all of that will continue to impact our upcoming results positively.
We'll continue to generate operating cash, and the focus on ROIC will continue to guide our decisions. That's what I had to say.
Now I'd like to open up for the questions. Let's take a look at the questions that we have. We have Bernardo from XP. Can we allow Bernardo to unmute? Good morning, Bernardo.
[Foreign language]
Morning, Bruno. Henrique. Thank you for taking my question. My question has to do with security.
[Foreign language]
The speed at which revenues slow down caught my eye. I understand a more challenging macroeconomic scenario can be challenging, but again, it's substantial. Is there anything else that will justify that? Is there any rationale behind this organization? What do you see when it comes to sellout and to the competitive scenario? Is this quarter going to be the bottom and we're going to be going up from here when it comes to new orders, for example?
[Foreign language]
Thank you for your question, Bernardo. It's a pleasure to have you here. It's business as usual in security. I think the main message that we need to see when it comes to security is that we did not lose market share. This is a very important point to drive home. Our portfolio is correct. There isn't anything that is really creating a stumbling block in security. We're also quite adequate when it comes to pricing in the market. We really see this as a seasonal situation, and that is mainly due to the macroeconomic scenario. As for selling and sell out, again, business as usual. No surprise, is there? And no negative surprises, of course. It really is quite normal. It's quite natural.
[Foreign language]
Thank you, Henrique.
Is that clear, Bernardo?
Thank you. It is clear.
[Foreign language]
Thank you. We have Gustavo from UBS.
Good morning, Gustavo.
[Foreign language]
Good morning, everyone.
Thank you for taking my questions. I've got two questions. One has to do with cash allocation and generation. The second question has to do with 2026. As for cash allocation, what is your priority in your strategy considering this increased cash generation? As for 2026, what are your priorities? What do you expect to see in Intelbras 's performance? I understand it's a year where we'll be focusing on ROIC with adjustments, but do you expect revenue to accelerate? Should we expect new levels of EBITDA margin to be reached? Thank you.
[Foreign language]
I'll start with the first question. As for capital allocation, the first use for capital allocation is to keep the money in the company's cash. We want to have two months of gross revenue available and that should not change.
We see the company generating good cash levels in the third quarter, should continue to do so in the fourth quarter. That's what Henrique said in his message. The board is always very attentive to this matter, the matter of capital allocation, of course, and decisions will be made when they need to be made. Intelbras is generating more cash and there could be more limited expectation when it comes to growth next year. There's also the discussion on taxes levied on dividends paid to individuals. We continue with the 35% of net income policy. If we understand we can have more payouts, we have sufficient reserves. They can be seen in our equity. The board can decide on how that's going to be used and applied. There is no limitation from that perspective. The cash is there, but this is still being discussed in the board.
Henrique?
[Foreign language]
The major focus we have for 2026 is customer journey. We want to be closer and closer. We want to understand what their pain points are. I'm talking about the end customer and the whole process in between. We really want the customer journey, the customer experience to be as smooth as possible from the product or solution acquired, be it simpler or more complex. When you think about the company and future perspectives from this angle of delivering better solutions to the customer, then there are countless opportunities. There are so many unaddressed customer pain points, especially when you think about these three segments that we focus on. There's a myriad of opportunities there. The start of 2026 should still be a moment where there is adjustment. It takes time for these adjustments to be implemented.
We will continue to pursue growth as it is part of our essence and continues to be our focus. There is a period where there'll be some adjustments. We'll continue to harvest the results, and of course with a lot of growth opportunity for next year. Of course.
[Foreign language]
That's clear. Thank you.
[Foreign language] Maria Clara, BBA.
Good morning, Maria Clara.
[Foreign language]
Good morning. Thank you for taking my questions. I like to go back to the portfolio rationale subject. When you think about a 10 km road, are you past the fifth kilometer? Are we going to have a lot of adjustments made to the portfolio yet? What can we expect when it comes to gross margins? We saw energy and ICT with margins that are even better than we actually had expected. Is there any room for even more improvement there?
[Foreign language]
Thank you for your question, Maria Clara. This is a marathon, right?
We're talking about you start practicing and jogging, but you only run the marathon when you actually run the marathon. This is a process that we started at the start of the year. There's still a lot to be done. We need to review all of our SKUs. Over 300 have already been reviewed. This analysis will continue till that period of the first quarter of 2026 with adjustments, as I just told Gustavo. In this journey, I'd say we're halfway through, slightly. We're sort of past the midline, but there's still a lot to be done. Process. We have implemented the processes that help us improve our understanding. We are acquiring this culture more and more so that we can be more accurate with our SKU management.
When we talk about the portfolio simplification and the pursuit of improved ROIC, we understand that not everything starts with a good ROIC. To be big, you start small. We want to have plans and we want to be cautious in how these plans are executed so that we can really act as quickly as possible and deliver on good results. As for the margins, Maria Clara, we almost expect, pardon me, we always expect to improve, talking about gross margins, not the EBITDA. That's always what we aim to do. There's the market too, right? We can't forget that. We need to know how we can navigate this volume and price equation. We need to find opportunities for more efficiency, more productivity for us to reduce our costs. It's always a balance of all of these variables.
[Foreign language]
Thank you very much for your question, for your answers.
Thank you for taking my questions now.
[Foreign language]
Better from Goldman Sachs. Good morning everyone. Thank you for taking our questions. The first question has to do with energy. In this large project reduction, we see different trends in different products in the energy segment. Could you talk a little bit more about the mix of the remainder of energy revenues? How much is solar? How much is non-solar? Even if it's just a ballpark, just for us to have an idea of what the impact of this large project strategy is. As for the PVA, how is the inventory behaving? We see that there is this impact on the PVA that is lower than in the second quarter. Can you give us some color on what you expect for the end of the year and for the medium term when it comes to inventory and PVA?
[Foreign language]
Answer the questions and feel free to complement me, Henrique. As for the energy revenue mix, in this first nine months and in the third quarter of 2025, the large projects have been paltry, right? A paltry amount. We don't see the market as something very vibrant and the opportunities that have appeared haven't really improved or helped improve the profitability as we aim at. The projects weren't very important. In the nine first months of the year we see that solar still is a very important substance of this segment. This could have an impact on our margins. We know that the other energy businesses have lower margins than solar. Henrique mentioned this in his talk. We consider about 50% of revenue and the other businesses continue to grow, and solar doesn't have these clear perspectives.
We should see this mix maybe reversing in the coming quarters, in the coming years. Sorry, I forgot your second question. Oh yes, the working capital and PVA. That's a very important point. PVA is rather complex in the way it's calculated, but we can simplify it to the context. You're right, we see more financed inventory, but we see a PVA that is lower than the second quarter when you had less financed inventory in the second quarter. The cost reduction driven by PVA has to do with composing the inventory, and then as you sell it you will write it off as cheaper because part of that has an installment that has been financed. We see the snapshot of the 30th of September different to the movie that we have of the film that we have for the third quarter.
The PVA of what is in transit doesn't go into the cost because it hasn't been written off in and reais yet in Brazilian reais. This is postponed in the coming months as we see the inventory financed, and that really is our perspective. Just to try and conclude this, this PVA matter, on top of financing the inventory, how much percent you have in your payables, we can't forget there, the fees have their impact. We continue to have Selic at 15%, the base interest rate, the costs which is lower in the second than in the third quarter, there's a negative impact as well. The macroeconomic scenario as well, that will also have an impact on the situation. We see that when the rates are more stable and there's more financing of the inventory, we should have less pressure of the costs. It is a complex subject.
I hope I have helped you understand it, but I'm also available to help clarify that further if you need it.
[Foreign language]
When it comes to vendors, how do you see their performance in the second quarter? You mentioned something like 140 days, 150 days and this quarter has gone up. Do we expect it to be reduced?
[Foreign language]
I think we can talk about the three parts of working capital. The working capital's logic is as we understand it should be for the business. We want receivables days between 70 days- 80 days of the gross revenue, the inventory. We normally analyze the quarter, and when you have a lower revenue, you need to reorganize new shipments so that the lower revenue will be impacted on shipments and the inventory will be brought to the right level. Then we can keep the 100 days, 140 days, 150 days as a target inventory.
We may not get it to the 30th of December, but we need to see the operations getting closer to this first step, and we should see it. Lastly, we have financing the inventory with the receivables days, and we have seen at 140 days or more. We started with it at 110 days, 120 days. That's correct. We need to see the inventory turnover finance 120 days and then about 80% of that financed and the payables as we normally see it. That gives us the possibility to have continuity in cash generation in the fourth quarter. We'll see robust generation in 2025 when we look at the whole year and the perspective that operating cash should continue in the first quarter next year, getting to the figures that I just described.
Okay, all right, thank you.
Thank you, Victor.
[Foreign language]
Cesar Sentiner Analyst Good morning. Can you hear me?
[Foreign language]
If I can just talk about two points. We see this low down in security. It's quite substantial because there is no market share reduction. I still think it's substantial because it's a resilient segment. Do you expect to see the segment bounce back in the next quarter? I think, I mean, there's a seasonality, but it's lower than normal levels. What are your thoughts there?
[Foreign language]
Good morning, Cesar. That's an interesting perspective. I'll break my answer down into three parts. Security is quite broad, and let's think about it from the customer's perspective. One part of it are the easier to install products. You don't need a technical professional joining you to implement it. These are products that you can buy retail and security and electronics. There's very good potential for consumption there. We see that consumption has been pent up, but we expect growth there in security.
[Foreign language]
Now, when we think about the market where there's more technical type of installation, you need more qualified manpower, and that will go through our distribution channel. We see that this market will normally service companies, and companies have been reducing CapEx. Look at us. The results that we have just shown, we see that CapEx, everybody's holding back there. Whatever they have, they want to keep in their pockets for now. There is investment, but less investment. We see that. We continue to send out quotes. There are requests, but not as many as in the past. The average ticket has gone down. If the average ticket goes down, you need to increase the number of quotes you get a deal for. It's not going down necessarily in the market as a whole, but it's more challenging.
From a customer perspective, there is a third part, the acquisition that calls for a project, a highly qualified team to implement that, and there is a lot of room for opportunity there. This is basically the investments that we've been making in the past years. A vertical that we've been looking or focusing at is buildings, residential buildings. We've been working with construction companies and developers. We've been getting good results there. We can't see it much in the results yet, but we will soon. We have very positive expectations because we have many paths in security, and in some of them we don't have a big market share. This is a market that's still taking shape, and it can help this market take shape.
[Foreign language]
Thank you. If I may ask another question though.
You said you're reviewing your portfolio, focusing on profitability more and more, and every SKU is being reviewed. Do you think there is any chance that we could have any SKU that is a substantial part of revenue that's going to be discontinued?
[Foreign language]
We need to see how much this business contributes to the whole. It's helping us pay expenses. That's an important question we need to ask. What is the return we have on it? What is the ROIC that we have? Does that mean that anything that doesn't deliver ROIC is going to be cut back? No. We know that some things are the way they are, and they're part of our solution regarding the company's strategic objective, and whether they have a good ROIC or a bad one, they're going to continue. We understand that, and it's fine.
Everything is being reassessed, and if everything is being reassessed, everything is being analyzed. If it's a business that is harming the company, then why not? If we can remove something and improve performance, profitability, operations, you'll be able to focus more on businesses that can grow more. Why should we hold on to something that is not going to deliver the expectations that we have? To get to the future we pursue.
[Foreign language]
That's clear. Thank you very much.
[Foreign language]
There are cycles, of course. We have seen security grow less in the past. The market is there and in response. We need to continue to work and develop this market together. That's quite important for the market to be shaped. To create a trend based on a single quarter is difficult. I now like to give the floor to Luca from Bank of America.
We only have three to four minutes before we have to finish the call.
[Foreign language]
Good morning everyone. I've got two questions. The question was asked around solar, but I also like to ask about ICT. How much of this segment is fiber related and what plans do you have for this segment? Can you talk a little bit about your pricing approach? When it comes to the dollar prices, are you transferring the changes and what is the expectation for each segment?
[Foreign language]
I'll answer the first part of the question. Gpon is about 30% of our ICT revenue and that was the main point in the revenue growth last year. That is the offender now when we see this decrease in year-on-year and quarter-on-quarter. Gpon has its impact and we continue to see the 30% level. As Henrique said, we're looking forward.
We have a first snapshot of the third quarter. We continue to have our discussions and we talk about our commercial policies and we're keeping our finger on the pulse on how things are performing and how these Gpon products will contribute to value generation and are going to contribute to profit and return. I think these are the points that we can talk about when it comes to fiber and Henrique?
[Foreign language]
When it comes to pricing, some things are addressed more proactively and some things more reactively. It depends on our position and our market segment or market share. Some things were transferred, some things were not. In a company with over 2,000 SKUs, there are differences. There is more flexibility in some possibilities. Some things, there's more of a fiercer competition, even bigger than the dollar. We analyze this. There is no decision to reduce prices for everything.
We look at every item or portfolio separately. If an adjustment is called for, we will make it. If not, then we won't.
[Foreign language]
We're getting to the end of the call and there are some questions that have been sent in writing that we won't be able to address here. I will answer your questions by email or per messages and then Yao Fideli from BVI. Can you just ask your question very quickly and then I'll answer the questions very quickly so that we don't go over the time.
[Foreign language]
I'll try to be concise. I just wanted to understand where you want to get. Up to the third quarter 2024, before the ERP and FX migration, it was a 13% EBITDA margin and a 21%-22% ROIC.
All of these initiatives that you have, do they aim to go back to what it was in the past or to be better? Thank you.
[Foreign language]
The idea is to be better, of course, just to be concise as you were in your question. Of course, it makes sense for us to do it and to get there. There are a few questions here that remained unanswered. We won't be able to address them in the call now, but our IR team will review them and answer them. Thank you very much for joining our call. I'd just like to give the floor to Henrique for him to make his final remarks.
[Foreign language]
I'd like to thank the Intelbras team as a whole. The team has delivered responsibly with discipline and with a lot of hard work in this third quarter.
This was a team that was devoted, hard working, and this is what's going to drive us forward. I'd also like to thank all of the support from our Board of Directors. They always help the Executive Board in making the best decisions for the good of the company and the customers. I'd like to thank you for joining us, for sending all of these questions, and for being interested in our results and for really underscoring that we are on the right path. We see some figures showing that already the sales cycle is taking place and we believe in a more conscious and lighter company. That's what we believe in for Intelbras. That's what we want for Intelbras. I count on you and of course you can count on us. Thank you very much everyone. This is the end of the third quarter 2025 earnings call.
Have a good day.