Wilson Sons S.A. (PORT3) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to Wilson Sons First (sic) [ Second ] Quarter of 2025 Earnings Call. Today with us, we have Mr. Arnaldo Calbucci, the company's CEO; Mr. Michael Connell, CFO; and Mr. Pedro Rocha, Investor Relations Director. The call is being recorded. [Operator Instructions] We will begin the Q&A after the company's presentation. Financial information is presented in Brazilian reais and complies with International Financial Reporting Standards unless otherwise stated. Page 2 of the presentation contains the usual disclaimers regarding forward-looking statements. I would now like to hand the conference over to Mr. Arnaldo Calbucci. Go ahead, sir.

Thank you. Good morning, everyone, and welcome to our earnings call. Let's begin the presentation on Slide 4 with an overview of our consolidated results. In the second quarter, net revenue rose 11% to BRL 770 million driven mainly by strong operational performance in the container terminal and towage segments. For the first 6 months of the year, revenue grew 15%. EBITDA increased 29% to BRL 362 million, supported by higher revenue and scale gains. EBITDA for the half year was also up 29%. Net income rose 275% to BRL 168 million, while year-to-date income grew 142%. We now move to Slide 5. On this slide, we highlight the financial performance of our main businesses. In the container terminal business, throughput rose 17% in the quarter to 370,000 TEUs, driven by strong performance at both terminals and significant growth across all trade flows, particularly in transshipment. In the half year, volume increased 20%. Revenue rose 13% in the quarter to BRL 284 million, supported by solid operational performance and gains from ancillary services. For the half year, revenue was up 14%. EBITDA increased 23% in the quarter to BRL 159 million, reflecting higher revenue and scale gains. In the half year, EBITDA rose 14%. In the Towage division, harbor maneuvers performed with our own fleet increased 4% in the quarter to 15,000 operations. In the half year, volume was also up 4%. Revenue grew 13% in the quarter to BRL 378 million, driven by higher volumes and a more favorable cargo mix. Revenue from special operations fell 27%, reflecting reduced services to LNG terminals and offshore energy assets. In the half year, revenue rose 18%. EBITDA increased 21% in the quarter to BRL 182 million, supported by revenue growth and margin expansion. For the half year, EBITDA was up 27%. In our nonconsolidated joint ventures, mainly comprising the offshore support vessel business, operating days rose 6% in the quarter. This was driven by higher fleet utilization with more vessels under contract. For the half year, volume grew 0.4%. Revenue increased 30% in the quarter to BRL 211 million, supported by operational growth and higher daily rates. In the half year, revenue rose 25%. Net profit recognizing the company's results through equity income posted a significant increase in the quarter, reaching BRL 38 million, driven by foreign exchange gains on balance sheet items and improved operating results. In the half year, profit also showed a strong increase. Moving to Slide 7. Here, we present some of our liquidity and leverage indicators, which remain consistently strong. Bank debt fell 12% compared with December 31, reflecting the depreciation of the Brazilian currency during the period, which reduced the value of U.S. dollar-denominated debt when reported in reais. In U.S. dollar terms, however, loans increased 0.4%, reaching USD 278 million. Highlights from the half year cash flow include BRL 461 million generated from operating activities, BRL 234 million in capital expenditure, mainly for the acquisition of key and yard equipment for the container terminals as well as for the maintenance and construction of tugboats and BRL 164 million in bank loan repayments. As a result, we ended the period with BRL 284 million in cash and cash equivalents. Bank leverage in reais fell to 0.9x EBITDA since December 31, 2024, reflecting the appreciation of the Brazilian real. The presentation ends here, and I would like to invite you to the Q&A session. Thank you.

[Operator Instructions] This concludes the question-and-answer session. I would like to invite Mr. Arnaldo Calbucci to proceed with his closing remarks. Please go ahead, sir.

In conclusion, our robust performance in the first half of the year highlights the organic growth across our portfolio. The strength of our core businesses has been remarkable, showcasing both the vigor of our operating model and the effectiveness of our strategy. Looking ahead, we remain committed to maintaining the highest safety standards, operational excellence, optimal asset utilization and disciplined capital allocation. I extend my deepest gratitude to all our employees for their continued dedication and exemplary work, which has been the hallmark of our company throughout its journey. Thank you all for joining us today. I hope you stay well and safe. Have a good day.

This concludes the Wilson Sons conference call. Thank you for participating, and have a good day. [Statements in English on this transcript were spoken by an interpreter present on the live call.]