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• Adjusted Net EBITDA: BRL1.7 billion, up 38% year-over-year for Q4 2024.

• Adjusted Net Income: BRL206 million for Q4 2024, more than double from the previous year.

• Full Year Adjusted EBITDA: BRL7.7 billion for 2024.

• Full Year Adjusted Net Income: BRL2.1 billion for 2024.

• Financial Leverage: 1.4 times, lower than the end of 2023 and flat compared to the previous quarter.

• Transported Volume: 19.9 billion RTK in Q4, 2% growth; 79.8 billion RTK for the full year, up 2.6 billion RTK from 2023.

• Net Financial Result: BRL735 million for the quarter.

• Net Debt: BRL11 billion at the end of the quarter.

• Liquidity Position: BRL8 billion in cash.

• Quarterly Investments: BRL1.9 billion, including BRL513 million in maintenance, BRL848 million in Mato Grosso Railway Project, and BRL551 million in other expansion projects.

• Warning! GuruFocus has detected 2 Warning Signs with BSP:RAIL3.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Rumo SA (BSP:RAIL3) achieved a 38% year-over-year increase in adjusted net EBITDA, reaching BRL1.7 billion.

• The company expanded its market share in key regions such as Mato Grosso, Goias, and major ports, despite a decline in Brazilian exports.

• Rumo SA's financial leverage improved, ending the year at 1.4 times, indicating strong financial discipline.

• Significant progress was made in the construction of the Mato Grosso railway, with over 5,000 workers and 1,000 heavy equipment units mobilized.

• The company raised BRL3 billion through new issuances at competitive costs, highlighting its strong credit profile and access to capital markets.

Negative Points

• The Southern operation was negatively impacted by extreme weather events and lower grain exports in the last quarter.

• Fixed costs and operating expenses increased, albeit at a slower pace than the contribution margin, reflecting the structure needed to support growth.

• There are bottlenecks in the Port of Santos, which may limit growth in grain volumes in the short term.

• Safety culture within the company needs improvement, as indicated by an increase in personal safety incident frequency rates.

• The company faces challenges in contracting prices for soybeans and corn, with a portion of sales expected to occur at spot prices.

Q & A Highlights

Q: Can you provide more information on how you built your volume guidance, considering the seasonal variations and potential increases in corn exports? A: Guilherme Machado, CFO & Investor Relations Officer, explained that the guidance includes operational improvements and efficiencies. The non-grain portfolio is expected to expand significantly, driven by new operations like Suzano's pulp and CBA's bauxite. Grain growth aligns with ongoing investments, and the fundamentals for the next crop are solid. The company is optimistic about the coming crop and confident in its execution strategy.