Good morning, ladies and gentlemen. Welcome to SIMPAR's conference call to discuss the results for the first quarter, 2026. The session is being recorded, and a replay will be available on the company's website, ri.simpar.com.br. The presentation is also available for download. Please note that all participants will be in listen-only mode during the presentation. We'll then begin the Q&A session when further instructions will be provided. Before we go on, I would like to remind everyone that forward-looking statements are based on the beliefs and assumptions of SIMPAR's management and on information currently available to the company. These statements are subject to risks and uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists should be aware that major economic conditions, industry trends, and other factors may cause actual results to differ materially from those in the forward-looking statements. Joining us today are Mr. Fernando Simões, Chief Executive Officer, and Denys Ferrez, Executive Vice President of Corporate Finance and Investor Relations Officer. Now, I would like to turn the floor to Mr. Simões, who will start the presentation. Mr. Simões, please go ahead.
Good morning, everyone. We are beginning SIMPAR's first quarter 2026 earnings presentation. On behalf of our more than 56,000 employees, I would like to thank you all for joining us today. We'll start with slide three with some of our main highlights for the first quarter 2026.
I would once again like to reinforce and remind everyone that in line with the strategic plan defined by our board of directors after a major mission to execute and transform our businesses between 2020 and 2023, 2024, we entered a new cycle with a mission defined by the board of directors of SIMPAR and of our subsidiaries of extracting value based on the infrastructure, assets, and investments built over recent years. Throughout 2025, you have been following this process. What we are seeing in the first quarter of 2026 is the continuing execution of this value extraction through improved operating efficiency, better asset turnover, fair pricing, and proper aligned with market changes, and the capacity of our people to do more with less, optimizing operations and reducing costs.
You will notice not only on slide three, which consists SIMPAR's consolidated results, but also in the performance of our subsidiaries. The strategy has translated in lowered leverage, stronger cash generation, improved efficiency, and higher returns on capital. Page three, we bring in the main financial indicators for 1Q 2026. Gross revenue total more than BRL 12 billion. Growth of more than 6% year-over-year. Adjusted EBITDA, BRL 3.2 billion, up 14% versus the same period last year, with revenue growth of 6%. Net loss, BRL 13 million, BRL 5 million higher than in the first quarter 2025. However, productive ROIC for the last 12 months, reaching 17.7%, 2 percentage points above the same period last year, and also 2 percentage points above our third-party cost of capital.
Still on slide three, on the right-hand side, we talk about some of the key executions of our strategic plan and value creation. Before discussing the main figures, I'd like to highlight that our companies have continued gaining market share with less CapEx and greater operating efficiency. That is, even with net CapEx a lot smaller than last year, that is down 68%, we delivered 9% growth in net revenue from services and growth of more than 14% of our EBITDA. As a result, we also reduced leverage. We completed the sale of Ciclus Amazônia in its entirety for BRL 200 million. Of this amount, 45% corresponded to SIMPAR's stake. That is BRL 121 million. This demonstrates the capacity of our managed team, the liquidity of our unlisted assets, and a pricing benchmark that the market may not yet be fully recognizing.
That's the proof of the value of our assets in line with our strategic plan. The quality of our operational execution, the efficiency of our companies, the sectors in and which we operate, the resilience of our businesses, and the capacity of our people, as well as our financial management team, have continued to support our access to debt capital through long-term partnerships and also opening new funding sources. In the first quarter 2026, we raised BRL 4.2 billion in funding at an average cost of CDI plus 1.9, average maturity of five years. We also announced a combined capital increase of BRL 2.9 billion involving SIMPAR, Movida, and Vamos is still in the subscription period.
This shows the efficiency of our management, the positioning of our companies, and the capacity of our people. More importantly, the quality of the investors participating in our capital increase, such as BNDESPar , for example, serves a strong endorsement of the quality of our governance. On slides five, we talk about Movida. Movida has been executing the strategic plan established by its board of directors with efficiency and excellence, whether through operating efficiency, cost reduction, anticipating customer needs. Now I would like to highlight our DNA of passion for serving, which has contributed to the transformation of the industry. This positioning, this DNA of Movida, have helped attract new customers. Last year alone, we added more than 600,000 new customers.
As important as attracting new customers is retaining them with Movida's loyalty program demonstrating that we not only attract, but also strengthen relationship with customers through operating efficiency, pricing improvements in both Rent- a-C ar and GTF, optimization of resources, and with that, we improved utilization levels, increased EBIT and earnings, and delivered revenue growth with much lower CapEx. As a result, our financial indicators have continued to improve. Again, without creating any expectations, we are very pleased with everything that has been done, but we strongly believe there is still a lot more to deliver based on the infrastructure platform, everything built, and the scale that we have today. Moving on to slide slide, we have Vamos. I'd like to highlight a few points to you about Vamos and what it has consistently demonstrated over the past quarter. First, its ability to sell assets.
We have been selling assets at a quarterly pace well above any expectations due to returned assets. Asset sales that were originally expected to occur two, three years from now are happening today and are being successfully executed, demonstrating quality of assets and the responsibilities of our people. Beyond that, the extension of five-year contracts for an additional two years using the same asset with higher yields. This is positive for customers since it avoids the need for new CapEx and repricing, while allowing them to continue operating the same asset with a small price adjustment, which for us it's better than renew the asset. In addition, we have continued leasing new contracts with returned assets that are two, three years old, what we call Sempre Novo.
That is, the quality of our assets gives the ability to redeploy the same assets for which CapEx has already been incurred. That requires less CapEx while continuing to grow revenue. In addition, we remain focused on cost reductions, which is part of a continuous improvement process, as well as extracting values through the allocation of everything that has been invested and through new contracts. When you look at the market with interest rates high as they are, many companies have assets, and they do not pass through costs to clients, and that gives them difficulty in accessing new credit. This creates opportunities for leasing. At the same time, shippers, industrial companies are also increasingly looking to lease assets in order to avoid becoming overly dependent or vulnerable to suppliers, which further expands leasing opportunities for Vamos.
There are, for instance, sales with potential leasing as Vamos just released. In other words, customers that want to lease assets while returning a future purchase office or even pre-arranging a future acquisition. New avenues, new market opportunities for Vamos to expand its leasing business, supported by its leadership position and unique market position. Very pleased with everything that has been accomplished. We are certain that Vamos still has much more to deliver over the coming quarters in yield, cost reduction, and continued operating efficiency gains. On page seven, we have Automob, the largest dealership group in Brazil. We bring some of our main financial highlights across light vehicles, trucks, equipment, and others. What I would like to emphasize is that this is a company that continues executing its optimization process through administrative initiatives, consolidating legal entities, improving processes, operating structures, supply management, and used vehicle inventory.
In other words, Automob remains in a process of optimization and productivity enhancement, reducing costs, increasing synergies that we'll still continue to see throughout 2026. I believe that the full cycle should be reflected by the first quarter of 2027. There are already solid signs when you see the number of new vehicle sales per dealership, which has not only improved, but continues to improve, as well as performance in after-sales and used vehicles. Because of a mistake, and we have to recognize, of inventory supply in used vehicles, we had a number close to previous quarters. However, there is significant upside potential, which will be achieved in line with the guidance for 2027, and also the improvements in F&I. I would like to highlight this for food for thought.
A potential increase in sales per dealership driven by better F&I and continued development of after-sales operations. This is a combo that will certainly drive stronger financial indicators. We strongly believe it. We are fully confident in the delivery capacities of our people. When we look at the current situation of the agricultural sector, we know that it's temporary. It's important to emphasize that what we represent, what we consider to be the world's leading equipment brands in regions with a strong demand. Although the current environment has led customers to postpone replacing these machines, they remain essential for future development, harvesting, planting. Fleet renewal will happen. It may be delayed one, two, three years, but we are well-positioned to benefit from the cycle when it resumes.
Until then, the team remains focused on reducing costs, improving margins, even with lower volumes, in order to offset costs and pursue financial balance. In trucks and buses, the first quarter saw a decline due to the government program that was announced following subsequent adjustments. The government has already provided additional support. We believe the second quarter should perform even better than the first. In other words, Automob has a unique positioning to benefit from the entire retail industry, individual mobility, trucks, buses, and agricultural equipment. We strong believe in the business, and this evolution should be consistent, reaching full maturity in the first quarter 2027, while already delivering quarter-over-quarter improvements in financial and operating indicators. On page eight, we have CS Infra, which has continued to expand its portfolio in line with our business plans and portfolio strategy.
Portfolio is consistent, resilient, focused on concessions or PPP in infrastructure, highways, ports, mobility, and also social infrastructure. Social infrastructure, we recently won the concession for 40 schools in the sate of Paraná. We believe the segment offers substantial opportunities, particularly mid-size concessions where the focus is services require less CapEx with resilient revenue streams supported by strong guarantee structures and transparent contractual frameworks. Although most of these concessions are still under construction, we are already beginning to see signs of financial development through growth in EBITDA, revenue, and earnings. On slide nine, we have Ciclus Ambiental, which comprises Ciclus Amazônia and Ciclus Centro-Oeste. Ciclus Centro-Oeste is a highly modern landfill operation with advanced technology, fully prepared to receive waste with significant revenue potential across the municipalities around Cuiabá.
Slide 10, we have CS Brasil, a company focused on fleet services and operations for the state-owned sector, ensuring fleet availability and productivity through leasing solutions as well as passenger transportation service. Growth has been moderate, but highly sustainable and resilient, and we continue to see substantial development opportunities ahead as governments increasingly seek improvements in public services supported by fleet-based solutions. In slide 11, we have BBC. Its credit portfolio has continued to grow, focused both within our ecosystem, but also on financing operations involving automobiles and trucks. The bank continues to prioritize financing structures with meaningful down payments. It spreads between 10%-12% and strong credit quality. In other words, the bank has been developing in a consistent, resilient, highly sustainable manner, always aligned with the business profile we believe in.
That is, assets with strong liquidity, high credit quality, and supported by the capacity of our people. Slide 12, we have some of our main indicators. Now I'll turn to Denys, that will walk you through them. Denys?
Thank you, Fernando. Good morning, everyone. I'll start on slide 12 with our consolidated financial highlights. Net revenue in the first quarter 2026 reached BRL 11 billion, of which approximately BRL 2 billion came from asset sales and BRL 9 billion from service revenue. Net revenue from services increased 9% compared to the first quarter 2025. On the right-hand side, we have EBITDA. For the first quarter 2026, it totaled BRL 3.2 billion with a margin of 29.2%, continuing the compared to the first quarter of 2025 and the previous quarter, an evolution that is continued both in margins and nominal values.
It's important to note that the comparison against the fourth quarter excludes the monetization related to Ciclus fuel asset, as highlighted in the chart. On the lower left side of the slide, operating income measured by EBIT totaled nearly BRL 2 billion with a margin of 18.1% in the first quarter 2026. This represents growth of 13% compared to the same period last year, along with a 1 percentage point margin expansion. Adjusted net income for the first quarter 2026 was a BRL -13 million, an improvement versus the fourth quarter 2025 when average interest rates were equivalent to those observed in the first quarter 2026, and only slightly below the result reported in the first quarter 2025. In the first quarter 2025, interest rates were approximately 2 percentage points lower than those observed in 1Q 2026.
This clearly demonstrates the work being done to rebalance all of our contracts and operations to the new macroeconomic environment. On the next slide, page 13, we bring our net CapEx for the quarter, which reached BRL 222 million. A reminder, this is gross investments, less procedures from asset sales. This is the lowest level recorded since the first quarter 2020. Compared to the same period last year, it is a reduction of nearly 70%. This again reinforce what we have been saying regarding the current phase of our long-term strategic plan. At this stage, the focus is extracting more value from the platforms built. This approach has been broadly reflected across our companies. There are, however, some additional considerations depending on the characteristics of each business. Some companies have seasonal CapEx profiles, Movida perhaps.
Others follow investment schedules tied to long-term business plans, as it is the case of CS Infra. Others are changing their business models and should become more consistent in reducing capital allocation, as it is the case of GA S.A. Now moving on to the next slide, we talk about this relationship between cash generation measured by EBITDA and investments. First, I would like to highlight that all the growth historically delivered by the group was only possible because of the strong visibility that we have whenever we start a new contract, and also because this is a group predominantly based on long-term contracts. Here we highlight that of our BRL 12 billion rising cash generation before gross investment, 80% is tied to long-term contracts.
I believe this is extremely important, especially considering that we operate in sectors that, through different economic crises, have consistently proven to be resilient and essential to society. Looking at this chart, which goes back to 2020, we now have the best relationship between EBITDA and investments over the last 12 months. Today, EBITDA is likely more than twice the amount invested over the past 12 months. This contracts sharply with periods such as 2021, 2022, when we were building the company's operating base and the scale we often reference, during which EBITDA was, at times, only half of the net investments being made. This clearly marks this new phase where cash generation significantly exceeds the volume of invested capital. Moving to the next slide, we bring some consolidated metrics related to liquidity, debt maturity schedule, and funding activity.
I would like to make an important point that these figures represent a simple aggregation of the group's companies. The way it's structured, built around publicly traded subsidiaries, each company has its own governance and risk profile. It's important to remember that publicly traded subsidiaries cannot be negatively impacted by SIMPAR as a controlling shareholder, or by any sister companies within the eight companies controlled by SIMPAR. That said, during the first quarter, the group raised BRL 4.2 billion with an average maturity of five years and an average cost of CDI +1.9%. Following the end of the first quarter, we also announced capital increases totaling BRL 1.8 billion at SIMPAR, BRL 750 million at Movida, and BRL 529 million at Vamos so far. Combined and net of the contributions made by SIMPAR to the capital increases of Movida and Vamos, the transactions totaled BRL 2.9 billion.
As a result, when we add the cash position at the end of the first quarter, approximately BRL 14 billion, together with the proceeds from the capital increase and the approximately BRL 800 million in available and drawn committed lines, and the available for [inaudible] that finance our leadership retail operations, total available liquidity for the group reached approximately BRL 18.5 billion. This corresponds to roughly 2.5 times short-term debt. Regarding indebtedness, the average debt maturity is close to four years. Now I'd like to address the same topic, that is in indebtedness, specifically for SIMPAR as a holding company on slide 16, SIMPAR ended the quarter with BRL 3.3 billion in cash.
Again, when added to the proceeds from the capital increase already received, net of the contributions being made to the capital increases of its subsidiaries, reaches approximately BRL 5 billion in total liquidity, which is enough to cover debt amortizations through 2031 on a pro forma basis, obviously. We officially report net debt at the end of the first quarter at BRL 2.8 billion. Again, if we deduct the proceeds from the capital increase I just mentioned, net of contributions to subsidiaries, and also include dividends receivable already declared by the company's dividends payable, we would have on a static pro forma basis in the first quarter, with all this pro forma calculation, net debt of approximately BRL 700 million, which is 74% lower than the officially reported net debt at the end of the first quarter 2026.
On the next slide, we bring three indicators specifically related to financial leverage, which on a pro forma basis points to the lowest leverage level in the last 15 years. We show data from 2010 through the most recent period based on the first quarter 2026. When we look at interest rates in Brazil back in 2010 were around 10%. We experienced significant volatility over the years, and today we are operating in an environment close to 15%. Even so, we are delivering deleveraging, and this obviously is supported by capital increases, also supported by our ability to demonstrate the value of investments we made and monetized. It also reflects the behavior of our portfolio and our businesses, which are adapting to the new macroeconomic environment. What we usually say is the following: We do not necessarily need interest rates in Brazil to decline.
Stability in interest rates alone is already sufficient for us to carry out the internal work required across our contracts so that they can be properly rebalanced. At the same time, we continue to improve efficiency, reducing costs to restore profitability, and this is exactly what we are doing. I believe this is very important to highlight. We did that during the last Brazilian recession of 2016, which was also driven by higher interest rates, and we are doing it again now, as I mentioned earlier, when discussing net income performance. On a pro forma basis, considering the last 12 months, leverage measured under the methodology we disclose for the international debt market, net debt to EBITDA at 2.8 times. The methodology we used in the local debt market, which includes net debt to adjusted EBITDA 1.9 times.
That is, we continue to execute our strategic plan exactly as intended, capturing value from the investments already made, realizing value through asset monetizations, as we have demonstrated, and focusing on operational improvements, as reflected in the expansion of EBITDA margins and nominal growth of our numbers. To my final slide, we have productive ROIC for the quarter reaching 17.7%, 2 percentage points above the average after-tax cost of gross debt using the same effective tax rate methodology and the highest level since we began disclosing productive return on invested capital. I turn back to Fernando. Please go ahead.
Thank you, Denys. On the final slide, we highlight a few points that we believe may contribute to your reflections.
The result of all the work that has been carried out focus on operational efficiency, pricing improvements, and cost adjustments with the objective of extracting value from everything that has been built over the past years can be seen in our key indicators, which demonstrates the potential value extraction embedded in the platforms built. We have 9% growth in net revenue from services, alongside 14% growth in adjusted EBITDA, while reducing consolidated net CapEx by 68% in the first quarter 2026. This clearly demonstrates value extraction from the platforms developed over recent years. When we look at EBITDA per employee, which increased 14% compared to the same period last year, we see value extraction through operating efficiency.
When we discuss pricing trends, our DNA has always been centered on serving our customers, but also having fair pricing that can reflect our cost structure and provides us the necessary returns to continue developing in a very sustainable manner. We are mainly focused on recovering prices, passing through costs whenever necessary. Driven by greater efficiency in the use of hours with higher utilization level, faster deployment and decommissioning process, and stronger asset sales, we achieved a 2.3 percentage point increase, 26.7% annualized EBITDA from services.
The result of everything we have built on a solid and sustainable manner enabled us not only to raise BRL 4.2 billion in funding during the first quarter 2026, but also to complete a BRL 2.9 billion capital increase. For us, this is a seal of recognition of the quality of our governance, the positioning of our companies, and above all, the capacity of our people to execute and develop in an extremely sustainable way within resilient sectors that are essential to Brazil's economy. Once again, on behalf of our people, more than 56,000 employees, I would like to open the floor for questions so that we can answer any of your doubts. Thank you very much, everyone.
We'll now start the Q&A session to investors and analysts. If you have a question, please click on Raise Hand.
If your question is answered, you can leave the queue by lowering your hand. If you want to ask a question in writing, please type your question on the Q&A button together with your name and company. Our first company question comes from Matheus Sant'Anna from Bradesco BBI. Mr. Sant'Anna?
Hi, Fernando, Denys. Good morning. Thanks for taking my questions. I have two. The first, I would like to talk about the potential value creation of non-listed companies. What are the levers that you see? What is the market not seeing in these companies? Second question, I would like to touch again value creation, but with some units of listed companies such as Intralog and JSL's third-party operations. What do you see that is important in terms of value creation for these companies? Thank you very much.
Hi, Matheus. This is Denys speaking.
I'm going to start answering your first question, potential value of unlisted companies. In all the businesses that we join, we always think of a long-term relationship. We like the safety, the stability of long-term contracts. Remember, 80% of our cash generation comes from long-term contracts, which gives us the security to continue investing because of visibility. We are building this portfolio of unlisted company with a lot of responsibility within an environment of high interest rates, and because of that, you always have to take this into consideration. If we have a more normal situation, the implied value creation will be much higher than what we already see as fair in the macroeconomic situation.
We see contracts and businesses of long term that are very resilient because of, again, their characteristics, because of the legal framework, and I'm sure that we are building this in a time that is extremely right. Again, there is an accommodation of macroeconomic assumptions, especially real interest rates, value creation will be even higher. I'm going to let Fernando answer the question as well.
Value creation, Matheus, what I would like to say is that Ciclus Rio, for example, was executed by our team. It started from zero, from scratch, and it became the largest waste treatment center of Brazil, one of the largest of the world, generating through gas biomethane. 60% of the volume of biomethane generated in Brazil from waste comes from Ciclus Rio.
The return over capital in monetization after three, four years of our acquisition. Again, SIMPAR acquired the business from related parties and the other shareholders. We said we are going to follow the votes of the minority shareholders. They decided to approve the transaction. We approved. It was acquired from the family holding. That shows the level of governance. With a return of 27% a year. That shows our capacity to do, the capacity to divest, and monetization of assets in addition to governance, which is a consequence of the business. In CS Infra, which is not listed, I'd like just to make a comment.
We just completed the entire investment in the beginning of this year, December, January this year, of the construction and modernization of the two ports, ATU 12 and ATU18, that are starting now to go into full operation. This is a business that has not yet generated value in our ecosystem. I'm not even talking about general value. When you go to Transcerrados, we completed last year Transcerrado, which is the road of 300 km, but we had a renewal, an extension of the road in which we double with a much higher revenue, and CapEx was invested. No one saw the results already of its full operation. I have to answer you in twofold. You have the creation of value of everything that has already been built.
In these two cases, I'm talking about BRL 1.3 billion, revenues are not there yet. You're going to start seeing as of now, in 2026. These are two points that have to be considered. I have another comment to make. You have CS Brasil that is also not listed, it's a logistics company, leasings with labor in the public sector. You see the improvement of its indicators step by step. Again, unlisted companies that we understand that are ready to be seen with CS Infra and CS Brasil. These are the two points that I think are worth highlighting. Matheus, sorry I took a long time to answer my question, I think it's very important. There is a lot that we understand.
First is not perceived, others that are already built, and now we are going to enjoy them. With JSL, I really liked your question, you have Intralog. It starts with revenues of more than BRL 2 billion, with no transportation almost whatsoever, and EBITDA of BRL 450 million-BRL 500 million, 22%-23% margins. This is Intralog within JSL. Within JSL, you see in the release 73% of revenues. Most of it you're talking about third party, independent drivers that provide services to us, and it's strategic services. You have another company within our asset light operations. We have been growing a lot through and we have been doing excellent work. Victor has really made the difference, the people in the company. We are now trying to communicate better. This is important for our operations.
Our businesses are more seen, and we have more focus to bring more value added to customers. In Intralog now we have a new CEO that is very experienced in the area. Again, a new company, completely independent, focused on continuous renewing contracts and providing even more excellent works to our customers. I do not know if Denys has anything else. I am sorry I took a long time to answer the question, but I think it is very important to tell you what we are doing, both in terms of creation of value of everything that is not listed, but also in listed companies we still have a lot more to grow.
What I would like to say about this reorganization, something that was already inside JSL, Intralog.
This is a business with a very good return, 24%, asset light, and that has been growing about 20% a year without receiving so much visibility and highlights, as Fernando mentioned. Certainly this will favor the development of the different avenues of growth of JSL Digital, Intralog and dedicated services.
Thanks, Matheus, for your question.
Very clear. Thank you.
The next question comes from Guilherme Mendes from JPMorgan. Mr. Mendes?
Hi, everyone. Good morning. Thanks for taking my questions. First question on strategy. Thinking more in the mid-long term and the short term, the maturation of the company's operational efficiency is very clear. Thinking of a bit of a longer horizon, what would be the optimal structure of the company? When do you want to re-accelerate net CapEx of the company that has reduced in recent quarter? Second questions.
Chinese companies, do you have any concern about depreciation risk, especially at Movida in the short term?
Well, capital structure, and Fernando is going to talk about the business as a whole. We used to say, and we are getting to our objective. We said that we had two objectives. First, we wanted with regards to SIMPAR as a holding company, we wanted to bring its net debt to zero, and we are working on that. Why that? Because the debt we had was a result of building the platform. It was not our objective. It was a consequence of us after we built the platform. So we wanted to get to zero.
In the group as a whole, we said that we wanted to deleverage the companies getting to below net debt-EBITDA 3 times ratio. Pro forma, we are getting at 2.8. Companies are following the same behavior as we accelerate SIMPAR's growth, but that was the objective, to be below 3 times. Sometimes you can have something that justifies something different from that, but for now, we don't have anything. This is the line that the board of directors have established. This is how we want to work with it. Fernando?
Well, Guilherme, first I would like to highlight the following. We did not come here by surprise. It's not that we woke up and this is what we have. That was part of our strategic plan, to build everything we have built.
That's part of our history, to raise debt, to raise funding, then build and bring value on what was built. Now we are at this phase. We are extracting value. We want to net zero the net debt of the holding. With what we have now is to manage our debt as we have always done. What I wanted to tell you is that re-accelerating net CapEx is not for us a re-acceleration, because we continue gaining market share. What we need to invest now is much more for renewal. The recurrence of new CapEx is just natural for the company. First we built, now we are extracting what was built. That was the mission of the board.
Build, build scale, have everything with you. We are going to improve and to have our continuous improvements. We believe that this is going to go up to the end of 2027 because there is a lot to be extracted, and the consequence of that is basically decrease our investments. In this period, we see that there are things that can bring us opportunities. We are going to continue growing. Growth, you can see that revenue is growing, and EBITDA, for instance, has been growing above revenue. We are not occupying our space in the market in company, in our companies because of CapEx. Quite the opposite. We are gaining market share in all the business in which we operate. That was part of our planning.
With the Chinese, we do not see any danger in terms of transformation of value by the Chinese. Quite the opposite. We see an opportunity. Cars that were not traded by rent-a-car company that cost BRL 350,000, and now you have cars that can offer the same and cost BRL 200,000. This is what is being brought by the companies, and we are going to have more of that. Now, can they get to more affordable cars? If they do, it's going to be good because you're going to have more alternative to buy. Is that going to lower used car prices? I don't see the risk because our used cars are about two years old. The turnover of the fleet is very fast, and so you can do things fast.
We are seeing the Chinese cars as an opportunity for Automob and Movida to make the customer experience even better and bring more people to the market. If you think the Chinese are a risk for residual values, I'm sorry, I do not agree. I think they will contribute to the segment, especially for used vehicles, to bring more clients to the business and for a better yield. I think that this is really going to the transformation of the business. Thank you very much.
Very clear.
Our next question comes from Pedro Tineo from Itaú BBA. Mr. Tineo?
Good morning. Thanks for taking my questions. I have two. In fact, I would like to start one approaching JSL.
In the results the company showed to us in terms of cash flow generation, which was very strong, I would like to ask you if this is going to continue from now on. If there is a new way in terms of CapEx over leasings vis-à-vis purchases. I would like to understand your prospects for cash generation for the future, and also the possibility of it pay more dividends. Another thing we see the scenario of fuel prices and companies of the group are very much related to this input. I would like to know what we can have in terms of good practices and resolutions for fuels. That would be interesting to hear from you. Thank you very much.
Hi, Pedro. This is Denys' speaking.
About JSL, we do believe that this is more structural. We did make the comment when you go through the net CapEx of the first quarter of the group, BRL 222 million. The lowest since the first quarter 2020. Within the basis that Fernando mentioned, that is the construction periods has ended. Just to compare to the previous year, we're talking about a CapEx reduction of 70%. If you look at each one of the companies, they have different behaviors. For example, Movida, that also had more sales than purchases this quarter, has higher seasonality in its cycle of purchases. At JSL, we did make this comment. This is a continuous trend that is assess the possibility of leasing instead of buying assets, and this, we believe, could contribute to positive cash generation, and that should last for some time now.
Pedro, this is Fernando speaking, just to contribute to the answer. Thank you for your question, first of all. Pedro, just to add to what Denys mentioned, cash generation at JSL, if you take a look at its history, it's very strong. When you start focusing on leasing assets, if you compare to peer companies abroad, we have operational leasing. All companies have operational leasings. In Brazil, we don't have that. What we see is the operational leasing. Oh, I'm sorry. Abroad companies have financial leasing. Here we have operational leasing, which generates more cash, not only now, but in the different areas. We have also an important part of the company without much CapEx. It's very interesting. We can propose to customers to work with independent drivers.
You have a great chance because sometimes you have a fleet, and it becomes a third-party operation. We start with the customer for a year or two, and then we transfer the operation to third parties. Very often, just the trailer for you not to be in the hands of independent drivers, but you have a much more controlled operation. That's part of it. Now, when you talk about cost assessment, every now we have, you know, increases in fuels, tires, things that are important for the composition of price. You have to think that prices of trucks from 2020 to 2025 increased by 50%-60%.
JSL has as its policy, and this is for the whole of the group, the best way to respect customers is to pass through prices so that you can cope with the costs you have, even financial costs. This is what we do. We pass through costs. We do not do away with that. You just do not see a greater growth for JSL because it is recycling some contracts, and it is still adjusting prices. This is part of our strategy, and this is what makes us healthy. Unfortunately, there are many competitors that don't do the same. Quite opposite. You start having more expensive money, then you have less credit, and this is good for JSL, Vamos and the others because people become more responsible in pricing, and customers understand what it's okay, and that brings huge possibility for organic growth for JSL.
In the last three, four years, we had substantial price increases, and many logistic companies are dependent on some sectors and segments, and they cannot pass through costs, and our customers are replacing them because they cannot replace their assets. Again, I apologize it took a long time, but this becomes huge opportunity for JSL and for Vamos because their customer shipper money this high, it makes more sense leasing than investing CapEx. This is an opportunity for Vamos, for Movida's outsourcing, for even individuals that prefer to rent a car than buying one. For all companies, it's an opportunity, especially for JSL, which has its costs very much based on fuel prices, but again, with very good pass-through triggers.
Just a quick follow-up, just to, for me to understand.
Because JSL indeed form a period of low liquids or net CapEx because of leasing, so we should expect a higher dividend payout for the future, that is, as the companies becomes more asset light? Thank you very much.
Well, in our businesses, we can have higher dividends in the future, but we want to first to improve indicators, to correct our capitals. Remember, we at JSL has a still a 2% market share in its segment. Dividend's okay. SIMPAR is not here to increase dividends of the companies. It wants to develop companies naturally. Dividends may happen, but not necessarily. What's important is to develop companies better. Thank you, Pedro.
Thank you.
Our next question comes from Andrea Heydy from Caixa. Mr. Heydy?
Hello, good morning. Thanks for taking my questions. I have two. Can you hear me?
Yes.
Okay. Thank you. Thank you, Denys, Fernando. My first question is related to EBITDA. We see that there was a growth of 14% when we compare quarter on quarter, but net profit was negative. When do you want to revert that considering the high interest rates? We see an important impact on financial results, and also the raising of private capital, BRL 1.8 billion from SIMPAR. You did talk about that before, but I'd just like to have a bit more color. Is this capital increase going to be directed to any specific operation or to deleverage the group? Thank you very much.
Hi, Andrea. This is Denys speaking. I'm going to start with the negative result of the first quarter.
I cannot give you guidance, but I am sure that we are on the way of changing results. Why is that? Because when you look at the first quarter of 2025, CDI rates that were reported, and we reported BRL 8 million on the same comparable base of this -13, and you look at the CDI of the first quarter of 2026, you have a difference of almost 2 percentage points. You see that this is exactly what we had described before. When you start a process of increasing interest rates in our business portfolio, you start to work to do all the balance that Fernando mentioned, and this is happening. Now with 2 percentage points of interest rates, we are very close to the results of 2025.
I do believe in the execution of the work that was done before, as we are and things are going to be better once you have the stability. I would say that if rates go down, it's going to be easier, but even if they don't, I think that we are going to deliver positive results for the future. Amounts and dates I cannot give you because that's guidance, but we work very much for that, and we assure you it will happen. In terms of a capital increase at SIMPAR level, and we do have a question here about that. What is the time for the capital increase? The resources are already in company. It was certified last Saturday. We just have some bureaucracy.
We have a total of BRL 1.86 billion, to be more precise. Until today, we could not make any movement in the capital market on behalf of the company because you have this period. Now, the board of directors have told us to reduce our gross debt in the short term up to BRL 1 billion. That is to buy back some of SIMPAR's indebtedness. This is a clear recommendation. We are not allocating for any type of expansion. This is the first part. This is a clear recommendation of the board. I don't know if I did I answer all your questions?
Yes. Thank you very much for the opportunity.
Andrea, just to add to what Denys mentioned, is that the cost of money, interest, we are not complaining. This is not it. There are things that we cannot control. Financial costs are the costs that we have, as we have costs with fuels and tires. We have to pass through prices. Sometimes it takes some time to really pass through prices in full. Every now and then, you can have a loss for one month, six months, one year. That's the time we take to balance the company. That's our, that's our focus. We are not a company that looks only at the present time. We look into the future. We want our businesses to survive in the long time.
If there are one-off situations, we need time to improve indicators, and that's what we are working on very strong to reverse losses. We are not frustrated because of that, because this is something that we cannot control. It takes time for us to pass through, and we have to improve operational efficiency. You have to anticipate needs. All that leads us to go back to better results very soon. When you see the capital increase in SIMPAR, we are very happy with what happened. I would like to make it clear that the development of investments, CapEx of the company, the growth of our companies will continue to happen, and you will see that. We did not need a partner. That was not something that we needed.
We have the strategy for a long term. This is an obligation that we have, not even as shareholders, but as executives to continue developing, growing, and supporting the development of our companies. Therefore, they will automatically contribute to development of our ecosystem as they have been doing so far and will continue to do. Again, we have never done a follow-up in the 16 years for the companies of SIMPAR, for the shareholders of SIMPAR that derived from JSL. We wanted to do this at some point, and we were very fortunate to have BNDESPAR. I think this is a endorsement of our governance. For us, it is an honor to have BNDESPAR in this ecosystem and the others that followed. This is very much part of our plans, and we are going to continue developing.
Thank you, Andrea.
Thank you.
We'll now start the questions in writing. Mr. Ferrez, could you read them?
I'm going to get the questions that we got in writing. Some of them have already been addressed. There is a question on Felipe about prospects to returning to profitability. We just answered that. Gustavo Camargo asks about the timing of the capital increase, which approvals are pending before the company receives the proceeds. Well, the proceeds are in SIMPAR are already SIMPAR and Movida are already one company. Simpar BRL 1.8 billion, Movida BRL 750 million. The certification of the capital increase is going to follow the calendar, but this is already in company.
For Vamos, we already have the amount of BRL 530 million, it's still in the period where the remaining shares are being subscribed. This is a matter of time again until we have the ratification of this capital increase. This is the outlook. Remember that we had a floor of at least BRL 2.1 billion, at a maximum BRL 3.2 billion, and we are reaching BRL 2.9 billion. That shows the support of the shareholder base in the belief of the development of the group and what has been done so far. I think this is very important to highlight. We have a question by Thiago saying, "How are you working with AI in the group?"
Thiago, this is Fernando speaking.
I think that this is something that is very nice to see. All our countries can live without our companies, but not without the services we provide. AI is helping us to optimize processes, administrative, bureaucratic processes, and we are working it very well. It's not that all our businesses are going to be transformed, but we don't have the risk of AI to replace us. We are going to work very much, and we are working with strategic fronts that we cannot share with you, but that will highly contribute for the alliance with our clients. Not that the clients are going to depend on us, but it's going to be easier for them to access our services through AI. We are very optimistic. It started very soon.
I think that this is something that is continuous work. It's here to stay, it will still yield very good results for the future, really transforming our processes and the relationship with our clients. Thank you, Thiago. We have some more questions that are coming. I'm going to read them. Daniel Marcato asks, "Could you comment on the Automob process? Are you comfortable with the company's leverage level and guidance?" Yes. Thank you for your question. Automob is still in a period of integration. It's integrating not only a back office, but all the whole logistics to supply to 100 floors of light vehicles. New concessions that are not even one year old, not mature, but the mature stores already reaching our guidance of number of sales per location.
F&I have take a look of what it was in the past and how much it changed in the coming quarters. At BRL 500, BRL 600 per car in F&I. It went from BRL 2.7 billion-BRL 3.4 billion. Real improvements happening by car, by F&I. Automob is integrating its stores. There was a strategic mistake because of lack of experience of supplying used cars to our stores. There was demand, we had no cars. That was an error, and now logistics is really working to supply the stores. You're going to see the transformation there. When you take a look at the agribusiness segment, I would like you to understand the following. In addition to the agribusiness carrying inventory, we are working with the best machines in the world, in the best region in the world with the largest volume.
Well, it happened what it happened, very soon the agribusiness will have to renew its machinery, its equipment. I believe agribusiness will contribute to the results of the company. Until this comes back, we are still working very much at Automob to avoid losses at the segment. We are very optimistic with the guidance for 2027. I think it's a huge opportunity that we are going to have in the dealership business, and I think it's going to follow what happened in the Rent-a-Car segment. Our team helped change the whole market because of a unique relationship to our customers. The relationship was completely different before Movida joined the market, and this is going to happen with Automob, with higher sales per location. F&I after sales, I'm very happy with the deliveries that are starting to be made by the company.
Thank you.
Rafael, with a more optimized capital structure, how does the company view share buybacks, and what are you expecting regarding dividend payout? What is this exactly for you? We have plans of incentive for executives. We have always open buyback plans. This is a policy. It is not a one-time announcement. This is a policy of our board to have this always open, it is not in our plan now. Dividend payout, it is what Fernando mentioned. It is an opportunity of development. Fernando mentioned that the increase of private capital has more to do with the long than the short term. In the future, if there is an opportunity, we will continue prioritizing the development of the group.
This is how we got here, and if this is going to be done with more dividend payout, this is something to discuss in the future. The other thing is that what you do, you do with the short term. The focus will continue to develop the group. There is another question from Thiago. The monetization of assets, does it continue on the radar as part of bringing the holding company to zero? Thiago, thanks for the question. Once again, I'd like to enjoy the opportunity of talking to you. We have more than 150 participants, and it's very nice to say that. I thank you very much for your question, for us really to clarify any doubts you might have.
I would like to reinforce again that we do not have a need to zero our debt overnight, because it was not created overnight. I'd like to make a comment. You see debt, you feel interest rates going up. You say, "Oh, this is a one-off experience." I have been working for since I was 14 years old, and this has always been like that. What we cannot control, we are going to work with our executives to get better. We do not have the need to zero that overnight. At JSL, people said that we had to do the last mile, I said, "I'm not going to do that," because value creation is completely different. Now we have Intralog. Those that went to the last mile probably did not develop that much.
People said that Movida was not going to work out, and we started with Hyundai. People said it was not going to work. You see what Movida did. That was thanks to our people, execution, discipline, anticipating customer needs. Again, this now thinks that zero debt is a ghost. No. We wake up every day in our business to do better and more of what we do. Anticipating customer needs, developing our group, this is the objective. We sold Ciclus here because the value creation was much higher. It made sense for those that bought it, rather than staying in our portfolio. Along this line, we decided to go for that. If you take a look at the sale in Pará, it's a small business. Again, it is more than what the company invested, three, four times our PL.
We have the obligation when we see this opportunity, something that is not going to be a gap in our portfolio, we will monetize and focus on more to create more value. The more value we can create executing our services will do. If creation value is through monetization, we're going to that. I would like to say that a sale on SIMPAR with a capital increase somehow is monetization. You are monetizing your shares. You increase the capital, you make the company stronger and ready to develop. This is the policy, and this is what we are going to do. On the other side, we are growing. We just have finished the concession won the concession of 40 schools. Again, this shows that we are recycling assets, we are recycling our portfolio, and that can happen.
We are doing and looking into that every day at SIMPAR, JSL , Movida, Vamos, Automob, we are going to continue with this focus. I think many of you can be very positively surprised through monetization or delivery of results that you still haven't seen in some assets, especially with CS Infra. Thanks, Thiago.
One more question from Nicholas. Follow on the question regarding the use of procedures from the equity raise at SIMPAR. Is it going to reduce gross debt by BRL 1 billion, or reduce gross debt to BRL 1 billion? Very good that you ask that. The capital increase with the structure benefit is to develop the business. The use of these funds to make the best allocation possible is partially, and again, not only coming from the capital increase, we also have the monetization that Fernando mentioned over and over again.
You have two events that are bringing cash to the company in a total of BRL 5 billion, as we mentioned. For the cash not to be in our hands, in the short period, we are going to reduce our gross indebtedness by at least BRL 1 billion. Reduction of gross debt. With net debt, it already occurs naturally because you have the pro forma calculation that we showed you at the end of the first quarter that takes us to, from BRL 2.8 billion to BRL 700 million. We always have a situation of liquidity that's quite comfortable in the group. This is a practice of ours. At SIMPAR it's no different. Now this is even better with the possibility of monetization of assets and the capital increase.
The idea is to make the better use of this money, which is to work at our gross debt. The first number is the reduction of our gross debt by BRL 1 billion. With net debt, we already have that automatically. All that said, I think we have a last question from Leandro. What is the expectation for you to start operating the Paraná schools, and what should expect in terms of revenue? Without creating expectations, the idea is to start revenues in the end of 2027, when we get to the end of revenues, about BRL 29 million-BRL 30 million a month. This, again, I'm not giving you any guidance, that was the result of the bidding process.
We are very much excited. That shows that CS Infra is going into the social infrastructure segment in education, which I believe has a giant opportunity. Less CapEx and more focus on providing services. Remember, CS Infra has no obligation in providing educational services. That is educational material, teachers, everything. That's the responsibility of the government of Paraná. We have to build schools, standardize buildings, and keep the buildings. That is the business. Ensure the quality of assets available as we ensure the quality of all assets that we deliver. This is going to be a huge opportunity in Brazil. Just to add to that, we truly believe in infrastructure in the security sector, which can really improve security indicators nationwide. Long-term concessions, in the building of police stations, in the building of better fleet.
We think, again, this is service-oriented, and we do believe that this is very important. We already work with some of the fleet, but I think it's a huge opportunity for Brazil.
Well, with that, we close our Q&A session. I'm going to turn you back to you, Fernando, for your final remarks.
Well, once again, on behalf of our team, more than 56,000 direct employees, I'd like to thank you very much for attending. We are very happy with what we have done. We believe we still have a lot more to be done in all our companies. Again, I'd like to highlight the improvement of indicators of all of our companies. Some more, some less. The ones that are less, we are going to adjust whatever we need, even organizational structures for us to deliver what has to be delivered.
SIMPAR is a holding that is not passive. We are close to companies enough not to impair their day-to-day, but to make sure that our plans are going to be executed. This is our focus, improving indicators. Once again, I'd like to talk about the growth of the companies, but a lot more growth is coming with less CapEx. In Movida, for instance, more than 600,000 new customers. That is Movida being chosen more by more customers, and it is growing. I think that it's growing market share. CS Infra, again, remember that there are lots of things that are still not bringing return from CapEx made. Many things that you're going to see from now on, in addition to us improving operational efficiency.
The sales of the Ciclus Amazônia show the evaluation of unlisted assets that are inside companies like Intralog, for instance, inside JSL, and it is very much asset light. I think now people start seeing opportunities and understand our assets and our work better. We do believe in the opportunities of difficult times. When we have market volatility increase the interest rates, this is when management makes a difference. We do believe that our team is very much grounded on providing the best execution possible, and that will make the difference. There are competitor segments that are going through more difficulties, and this, I think, is going to make a real difference, which is our management model, our way of doing things. We think that this is the major difference. Automob, I mentioned. Again, huge opportunities at the company.
Without further delay to myself, the final message I wanted to leave with you is that what has been going on in our ecosystem as a whole is in line with our strategic plans defined by our board. When I say that it's in line with our strategic plans aligned with the board, everything that you see was planned, is being planned, and we have huge governance and very much discipline. We defined a transformation of scale infrastructure from 2019 to 2024. That was part of our plan. As of 2024, focus on extracting value of the companies that have been built. This is our mission now.
Our obligation defined by the board as executives is to continuously improving our results by extracting the best value from our business of everything that was built, growing revenues, growing EBITDA more than we grow revenues, improve margins, and as a consequence, improving all our financial indicators. The consequence of that is better leverage ratio with more customer loyalty and surprising you every time we meet to discuss our results. Again, continuous development and extremely sustainable. This is our mission. On behalf of everyone, I'd like to thank you for your time. More than 250 participants, thanks for your time, for attending, and I wish you a wonderful weekend. Thank you very much.
SIMPAR's conference call is now closed. We thank you very much and wish you a very good day.