Log-In Logística Intermodal S.A. ($LOGN3)

Good day, everyone. Welcome to Log-in Logística Integrada conference call to discuss fourth quarter 2025 earnings results. I am Sandra Calcado, Log-in's Investor Relations, Strategy and ESG Manager, and I will be your host during this event. The presentation and comments about the results will be made by Pascoal Gomes, Log-in's Finance and Investor Relations Vice President; Nilton Pimentel, CFO; Gustavo Paixao, Terminals Officer; Felipe Gurgel, Coastal Shipping Officer; and Mauricio Alvarenga, Road Cargo Transportation Officer. They will comment on the company's performance and main highlights of the quarter. Then we will be available to answer questions that you might have. The slide presentation and earnings release in both Portuguese and English are available in the results center of the company's IR website. And we will be showing the presentation in Portuguese here on Zoom. In addition to the rooms available in Portuguese and English, we will also provide Brazilian language interpreting during the whole event. [Operator Instructions]. Be advised that this webinar is being recorded and will be available on the company's website. Before proceeding, as usual, we would like to clarify that forward-looking statements that might be made during this conference call relative to Log-in's business perspectives, projections and operating and financial goals, they are all based on the beliefs and assumptions of Log-in's management and on information currently available to the company. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Log-in and could cause results to differ materially from those expressed in such forward-looking statements. Now with the legal disclaimers made, I'd like to turn the floor to Pascoal Gomes, Log-in's Finance and Investor Relations VP, to start with his initial remarks.

Thank you, Sandra. Good morning, everyone. This is Pascoal speaking, Log-in's Finance and IR Vice President. I would like to thank everyone for joining us on this conference call to discuss Log-in Logística Intermodal's results for the fourth quarter of 2025. Well, let's begin our presentation, with the operational and financial highlights, starting with Coastal Shipping and Integrated Logistics Solutions. We transported 776,900 TEUs, a 6% increase compared to 2024. Intermodal operations grew 15.2%, totaling 146,200 operations, reinforcing the demand for Integrated Logistics Solutions. Net operating revenue of Coastal Shipping reached BRL 2.1 billion, up 19.9%, while adjusted EBITDA totaled BRL 487 million, up 2.2%, reflecting our operational discipline even in a more competitive environment. At TVV, we posted a very strong performance. General cargo volume grew 30.1% or 929,700 tonnes and bulk cargo volume increased by 55.7% to 665,500 tonnes. I would also like to highlight the first operation involving 15,000 tonnes of [indiscernible], integrating road transport, storage and port operations, an important milestone in the diversification of the Terminals Cargo. In Road Cargo Transportation, road cabotage operation totaled 5,200 TEUs, a growth of almost 40%, reinforcing the synergies between Tecmar and Coastal Shipping. In addition, we recorded a 5 percentage point increase in the level of service compared to the same period last year. As part of our capacity expansion, we completed the acquisition of a 30,000 square meter property in Manaus, expanding our operation in the operations of Tecmar Norte. Lastly, as regards to ESG, we obtained the silver seal from the Sustainability Pact, advanced on the climate agenda with a B rating from the CDP and were awarded the AEO Compliance Seal, reinforcing our standards of governance, safety and efficiency in the logistics chain. In summary, the results reflect growth, business integration and consistent strategy execution even in a more challenging environment. Next, our team will present the results for the quarter, starting with Nilton Pimentel, our Chief Financial Officer.

Thank you, Pascoal. Good morning, everyone. Thank you for attending Log-in Logística Integrada's Fourth Quarter '25 Earnings Conference Call. We ended the quarter with net operating revenue of BRL 863.8 million, an increase of 10.1% year-on-year, a result driven mainly by our coastal shipping business. Of note, cabotage and Feeder Services. Looking at the full year 2025, NOR totaled BRL 3 billion, with growth similar to that recorded in the fourth quarter at 10.2%. Adjusted EBITDA recorded growth of 50.3% in the last quarter of '25, totaling BRL 197.8 million with a positive highlight for TVV with strong general cargo handling. Considering the full year '25, our EBITDA grew 16.7%, totaling BRL 687.2 million. EBITDA margin in Q4 increased by 6.1 percentage points to 22.9%, while 2025 EBITDA margin remained virtually stable, rising 0.8 percentage points to 22.3%. Despite slightly higher margins, it is worth noting the strong pressure felt throughout the year on cost of services provided to CSP, especially in Coastal Shipping with an increase of almost 28% in Q4 '25, mainly on account of port and route costs. Thank you. I now give the floor to Felipe Gurgel, Coastal Shipping Officer.

Well, this is Pascal. I'll take over for Gurgel. So let's start with Slide 5. I would like to highlight our solid growth in net operating revenue. We recorded a 23% increase in the fourth quarter year-on-year and almost 20% in the full year 2025 year-on-year, reaching the historic mark of BRL 2 billion, as net operating revenue of Coastal Shipping. Volume handled also continued in a growing trend, reaching just over 200,000 TEUs in Q4, a record mark for this period of the year, resulting from the increase in Cabotage volume and Feeder Services, especially in the to and from Manaus route. It is worth noting that in the same period last year, the volume to and from Manaus was impacted by the interruption of navigation to the Port of Manaus and operations were carried out through a floating peer in the Itacoatiara region. This did not happen in 2025. Although we did face restrictions, there was no total interruption in navigation as was the case in 2024. In terms of volume growth, it is important to mention the sector's performance, which grew almost 15% year-on-year according to ABAC data, Brazilian Association of Cabotage Shipowners, with Log-in growing slightly above this percentage, increasing our market share. Moving on to operating income. Despite a higher volume, we had virtually no change in the fourth quarter result and operating income was about 2% above that of 2024, reaching BRL 487 million in 2025. This result is mainly explained by the imbalance between supply and demand in the domestic market, which has been naturally putting pressure on freight rates. On the other hand, the increase in feeder volume on longer routes partially offset the loss of margin in Cabotage, which resulted in a margin loss of 5.5 percentage points in Q4 and approximately 4 percentage points in the full year 2025. Operationally, we achieved our record volume of Intermodal operations, the land stretches of collection and delivery the last-mile. There were more than 140,000 operations in 2025 with a punctuality level above 91%. We consider 2025 to have been a very positive year for Log-in with consistent results, thanks to the tireless work of the entire Log-in team. As already mentioned, 2026 will be a very challenging year in terms of supply and demand relationship, margin levels and also because it will be a year in which we will have some mandatory docking operations. Finally, we are monitoring developments in the Middle East war and its potential impact on the Brazilian economy and on our business, especially in terms of rising oil prices, which impact the relevant cost line item for all businesses of the company, mainly coastal shipping and road operations. I now give the floor to Gustavo Paixao, who will present the results for Terminals.

Good morning, everyone. Thank you, Pascal. This is Gustavo Paixao, Terminals Officer. And now we will review together the results of TVV, results for the fourth quarter ' 25 and the summary of the year-end results. When looking at the volume of containers handled at TVV in the last quarter of 2025, we see a slight improvement over the same period last year with 53,200 boxes handled, around 2% increase. This represents a good recovery in container handling compared to previous quarters, which were impacted mainly by a sharp drop in exports, especially coffee, which faced strong competition in the international market and also granite, which was impacted in the second half of the year by tariffs imposed by the U.S. government. As a result, the full year results stood at 218,200 containers handled, which is a good number, but about 4.6% lower compared to 2024. Of note, the year 2024 stood out and set a record for TVV handling. In general cargo, we have a positive scenario when we look at volumes, both for the quarter and the full year. In Q4 '25, we reached the mark of 387,400 tonnes handled, up just under 38% compared in the year-on-year comparison. This growth scenario is also repeated in the full year results with a handling of almost 930,000 tonnes, a 30% increase compared to 2024. Here, we highlight and provide a sample of the recovery in this cargo profile in 2025 with special emphasis on bulk cargo, which grew 55.7% compared to the previous year as well as vehicles and project cargo, which also showed a recovery since the terminal resumed full operational capacity. After 2024 that was challenged with the retrofit, which imposed many challenges on us. Now that our capacity has been restored, we can see the importance of meeting the most diverse demands in the port sector of Espiritu Santo with a high level of service in 2025. Moving on now to our net operating revenue. I would like to start by pointing out that in Q4 '24, we recognized a nonrecurring revenue in the amount of BRL 59 million, which I will disregard in my comments for the purposes of comparing the results for Q4 and the full year. Having said that, our revenue grew by 27% over Q4 '24 as a result of a substantial increase in bulk cargo handling, which showed remarkable growth in the period of ancillary revenues and also the container volume effect, bringing our revenue to BRL 113.8 million in the fourth quarter of 2025. And we see some impacts in the full year, for example, the effect of the low handling of containers, which has a reflection on revenue, which is about 9% below compared to the previous year with BRL 396 million. Our EBITDA was BRL 51.1 million, which is noteworthy and represents a 32.4% increase over the same period last year. The full year 2025 result shows a slight increase compared to 2024 of around 1.5%. The result is practically in line with expectations as a consequence of lower container handling than in 2024 and in the volume of general cargo, BRL 168 million in 2025. Well, as we have seen in the results presented, whether in terms of volume or financial results, the year 2025, albeit challenging with external factors that directly affected our segment showed that the Terminal was able to respond appropriately with the completion of our retrofit project in 2024, recovering performance, volume and results in 2025, increasingly consolidating itself as a multipurpose terminal. And now with our daily capacity expansion, we have everything to continue to grow in 2025. This concludes the presentation of the Terminals division. I now give the floor to Mauricio Alvarenga, Officer responsible for Tecmar Transportes, who will continue with the presentation of the results.

Thank you all. Thank you, Gustavo. Well, this is Mauricio Alvarenga speaking, Executive Officer in charge of Tecmar, the road business in the multimodal -- responsible for the multimodal operations of the group. In Q4 '25, Tecmar continued its plan to restructure our business. When I speak about recovery, I mean less than truckload business. We optimized several operations in the 18 own branches we operate and the results were already partially observed in the fourth quarter. It is worth noting that our focus on the Less Than Truckload business has been to optimize mainly our operations, i.e., to reduce the average operating cost per ton transported, and adjusting our customer base with customers that generate fewer additional costs to the operation that are -- that match more our customer base and our business. Our EBITDA was negative at BRL 7.6 million. But compared to the previous quarter, it improved a lot. In the same period last year, EBITDA was a negative BRL 21.4 million. We maintained a volume of full truckload that was slightly lower and LTL, more or less the same. And we had a reduction in operating costs, a cost reduction of 17% in the period. At the same time, Q4 was our best quarter in terms of volumes for the Road Cabotage business, i.e., Tecmar cargo being transferred over long distances via log-in ships, generating a positive impact that we don't see in the road Transportation business, but that we see in the Coastal Shipping business unit, as Pascal mentioned, when he spoke about Cabotage. Container transport has also been evolving well. We are capturing greater synergy within the group, operating also for Log-in, but also for other companies in the group and also expanding in the transport of imported containers internally, but also expanding to many other market customers, especially customers that operate imports. Our Manaus unit, in particular, has been growing a lot in terms of cargo imports. In the next slide, we can see the evolution of some indicators. First, talking about OTD on-time delivery. This indicator performed well in the end of 2024 and throughout the year 2025, with good stability in our operations contributing to improving our customers' experience. This is something we'll continue to focus on throughout 2026. The second chart shows the index evolution base 100 of our less Than Truckload Volume, what we call LTL. As I explained in the previous quarter, in the previous quarters, we were focused on significantly adjusting our customer portfolio, seeking to gain new customers, but also to understand the customers' operations and adapt their operations to our production line. Our focus has been to improve unit margins, reduction of operating costs and not necessarily increasing total volume transported. The third graph shows the volume of road cabotage, also mentioned by Pascal. This is a product that has been very well received by the market. It is a differential of our group. Of these differentials, we highlight mainly competitive prices, sustainability, we have routes in which CO2 emissions were reduced by 80% and also reduced rates of faults and claims. In other words, it's a great option for customers who seek more competitiveness. In the next slide, we will talk a little about Tecmar Norte. We mentioned that we acquired a new property. This was mentioned in a material fact disclosed in the previous quarter. And the goal was to expand the terminal in Manaus. And you can see in the darker blue, that's the expansion area in yellow, the current terminal area. So physically speaking, the area is adjacent to the existing area. So there are some relevant information here. First, the location of the terminal of Tecmar Norte. It is a very good location in the heart of the industrial hub next to major industrial plants such as Honda, LG Electronics, LG, et cetera. These are existing customers and the customers of Tecmar Norte. We had the opportunity to acquire this adjacent area. And why is this important? Because we can expand and we can integrate with the current operation and achieve this with marginal cost increase. We have great operational synergy. It will be one single terminal. We just need to expand it. And we will be able to consistently expand our service offering because the Manaus market is a growing market, and it is a market that lacks logistics solutions. It is where Log-in has invested heavily in offering cabotage services, not only cabotage, but Integrated Logistics Services. In this case, we offer the capacity to import containers, storage and warehousing, road transport in Manaus integrating with cabotage, integrating with imports. So it is a truly Integrated Logistics Solution, and we began operations in this new area at the end of December 2025. Of course, it has not yet been possible to see an impact on the fourth quarter results because this happened at the very end of the year. With that, thank you all for participating. And I'll give the floor again to Nilton, who will continue the presentation.

Thank you, Alvarenga. Moving on to talk about the company's debt. As we can see from the table on the right, net debt ended 2025 at BRL 1.2 billion with net debt over EBITDA ratio of last 12 months of 1.5x, a reduction quarter-on-quarter when we recorded a ratio of 1.8x, reflecting a slightly higher cash amortization flows running normally without new debt and higher accumulated EBITDA. Our debt structure remains very healthy, and we're well positioned in relation to our covenants. The pie chart provides some additional information related to our debt profile. We can see that 89% of our debt is long term. In other words, with maturities exceeding 12 months. On the right, we can see the breakdown of debt by index, demonstrating a dilution of our debt among different indices, which we consider to be very healthy. Lastly, the bar chart shows our amortization schedule with the most significant events beginning late in 2029. Moving on to the next slide, we will now discuss some of the deliverables of our ESG agenda. Throughout the period, we made progress on all three fronts, Environmental, Social and Governance. Starting with the environment. We continue to make progress on our climate agenda, notably achieving a B rating from the CDP, reflecting progress of our climate management and transparency practices. In the Social pillar, we received significant recognition. We were awarded SilverSeal issued by the Sustainability Pact of the Ministry of Ports and Airports of Brazil and won second place in the ESG category at the [indiscernible] of the Brazilian Association of Human Resources of Espiritu Santo. In addition to the highlight seal awarded to initiatives with technical excellence. These recognitions reinforce the consistency of our initiatives focused on people and society. We also made progress in strengthening our supply chain with the implementation of a Maturity Assessment System, which considers aspects such as compliance, integrity, human rights and certifications. In Governance, we highlight the award of the AEO Compliance Seal, a certification from the Federal Revenue Service of Brazil that acknowledges high standards of security and customs compliance in the logistics chain. In addition, Tecmar was recognized by the Na Mão Certa program, the right way, reinforcing our commitment to combating sexual exploitation of children and adolescents on Brazilian highways. These initiatives underscore our commitment to a consistent ESG agenda that is increasingly integrated into the group's strategy. Back to Pascoal Gomes.

Thank you, Nilton, Gustavo. We will now move on to the question-and-answer session. I am at your disposal.

[Operator Instructions] We have a question from Alana. Excellent results. Could you speak about the nonrecurring event of PIS/COFINS tax relief for the Manaus operation?

Thank you, Alana, for the question. I will give this to Nilton -- refer the question to Nilton Pimentel.

Thank you for the question. This was a lawsuit that we filed with our team and took quite a while. And it questioned the application of PIS and COFINS taxes to transport to the free trade zone of Manaus to and from the free trade zone of Manaus. We're talking about the period from 2018 to 2024. And this led to this taxes to be recovered of BRL 122.9 million, which, as you could see, impacted the result. Our expectation according to company projections is that these will become cash indirectly as we will be able to offset that same amount with other federal taxes to be paid. Our expectation is that this will happen over the next 2 years. So this will result in the deduction of other taxes in the next 2 years.

We have another question in the Q&A from Marcelo Gomes. I would like to know whether Log-in intends to participate in the Tech content of bidding process in Santos. And I'd like to know how Tecmar is seeing the year of 2026. Does Tecmar intend to get -- to operate in the bulk segment?

Thank you for the questions. To answer the first part of the question, no, Log-in will not participate in the [indiscernible] centers bidding process. It's not in our plans. There's a lot of news about this in the market of those who are interested in how the players are getting prepared to bid in the bidding process. Regarding the second part of the question about Tecmar in 2026, I'll turn the floor to Mauricio Alvarenga.

Thank you, Pascal. Well, to speak a little about Tecmar in 2026. The question has two parts, whether we will get into bulk cargo operations. It is not our goal. Of course, if the specific project arises, we can consider it, but it is not our objective. We talked about this in the past meetings. Tecmar is going through a transformation, a huge transformation process, turning Tecmar into a more complete multimodal logistics operator. Today, Tecmar has a lot of operations geared to container transport, providing support to the group. We provide storage of containers. We have this big base in Manaus, as we mentioned. And another big challenge is regarding less than the LTL, Less Than Truckload business. There is a line that is developing really well, the Road Cabotage business. It is interesting to us. It's interesting for the market. The market is receiving it really well. We are very excited. And LTL over road is the one that is suffering the most, particularly with price pressures. But we believe that we have adopted many actions since last year, and we believe that 2026 will be more positive in that business line. We believe a lot in it. Our level of service has improved a lot for our customers in recent years, and we're getting good feedback from customers. So I think that our line of business looks very positive.

We have another question from Lucas Guimarães. Could you speak more about the impact of the war in Iran on Log-in's business?

Thank you, Lucas, for the question. I'll turn the question to the business leaders, Gustavo Paixao, Mauricio Alvarenga, so that they can speak about the impact on the different business units. Gurgel, let's start with you.

Thank you, Lucas. Well, firstly, I would like to apologize. There was a technical glitch in my connection during my part of the presentation. But I understand that Pascal replaced me and all went well. To answer the question on the war in Iran, we still have not a lot of detail on how this will reflect on the industry in terms of cargo flows in Brazil, whether there will be any impact at all. The fact is from the standpoint of infrastructure and Coastal Shipping we are prepared. We are having a sound a little more chopped, but we are prepared for whatever comes. There might be an increase in fuel price. This has happened before in other quarters. And we can mitigate that impact by launching an emergency bunker charge where we pass through part of this price increase, in fueling our vessels. To give you an idea, we are talking more than 100% increase in the cost of bunker tonne at Santos in a matter of week, 1 week. This is quite substantial. And that is why this week, we have used this emergency surcharge to mitigate the impact of the bunker fuel price increase. In the Intermodal piece, I think that Alvarenga going to speak more about that. But in Cabotage, we also feel the effect of diesel prices on our route business. This is somewhat controlled with this surcharge. Well, this is it. I will turn the floor now to Gustavo or Alvarenga.

It's me, Gustavo. Thank you for the question. Well, we are assessing the possible impacts when we look at the terminals business, to give you an order of magnitude, when we present the consolidated results for 2025 full year, we handled slightly over 218,000 containers at TVV. Of these, only slightly over 1,000 containers are too, from a region that is impacted by the war. From this point of view, we don't expect a great impact in terms of the flow of cargo. Also regarding routes, we have a perennial route from China directly to TVV, to Espirito Santo through the South of Africa. There's no impact in terms of transit time of this cargo flow. In terms of the park of equipment we have at TVV, they do not entail a high diesel consumption. We have some trucks, some equipment that use diesel, but we also have other pieces of equipment that have high consumption, but are hybrid. So in moments of crisis, we can use them powered by energy. So of course, for the moment, this is it. Of course, it can change. We're talking about a geopolitical event. We don't know the full consequences. But in the foreseeable future, in our assessment, there will be no major impact. Alvarenga?

Well, to bring you the view about the road market, road transport market, I can tell you that the market is kind of crazy. All carriers are feeling the effect of the increase in diesel prices at the pumps. Although Petrobras so far has not effectively announced any change in the price of diesel domestically. But we know that a part of Brazilian consumed diesel is imported. So the important part is undergoing some variation that distributors are passing this price increase, and we see the effects at the pumps, at the gas stations throughout Brazil. So the market is kind of crazy. Most of the carriers in Brazil do not have the ability to absorb this cost. So undoubtedly, these carriers will pass through this price increase. It cannot be different than that. And that's where I think that we have a big difference as a group because we have Coastal Shipping as an option. Although Coastal Shipping is also affected by fuel prices, as Gurgel mentioned, when we put this in perspective in terms of economy of scale, shipping is more competitive than road transport. What I believe at Tecmar is that we are offering this solution to our customers, which is, trying to minimize the impact of fuel price increases. We have the road cabotage solution, for less than truckload, it is a solution that has its price increase. It's a slight price increase, but it is more competitive than the current freight, which is based only on road transport. And that applies to full truckload as well. So we think that in the short term, we are going to have greater demand for Coastal Shipping services because of that. But as Gustavo mentioned, there is a lot of uncertainty. Things are happening in the last 2 weeks, and we need to be monitoring that up close and taking action accordingly. This is what we will do.

We have another two questions here that were answered. an anonymous question asking about the impact of the war in Iran, impact on bunker fuel. There's a question by Branco asking about the impact of bunker price increase on account of the Middle East war. We answered that. As there are no more questions, I would like to thank you all for participating. I'll turn the floor back to Pascoal Gomes for his final statements.

Thank you, Sandra. Thank you to all who joined us in this video conference call. We ended the fourth quarter of 2025 and the full year with results that reflect very disciplined execution even in a still-competitive environment. As we mentioned during this call, we increased volumes. We had a good evolution of our integrated solutions and the consistent focus on levels of service and operating efficiency. We remain attentive to cost pressures. There were some questions about this, and we remain attentive to those cost pressures and market behavior, prioritizing commercial adjustments, expense control and preservation of our margins. At the same time, we are preparing the company for a more balanced operating dynamic throughout the year. Our team remains motivated and continues to promote vigorous growth of our operations. Lastly, I would like to thank all of you for your attention during this conference call. Thank you very much. Have a good afternoon, everyone.

Thank you. The conference call of Log-in Logística Intermodal to review fourth quarter 2025 earnings has come to an end. You may disconnect, and have a great day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]