Q2 2025 Romi SA Earnings Call (English, Portuguese) Transcript
Key Points
- Romi SA (BSP:ROMI3) reported a solid order backlog with growth across all business units, indicating strong demand and future revenue potential.
- The company achieved a net operating revenue of approximately BRL316 million, representing a growth of 7.1% compared to the second quarter of 2024.
- Romi Machines saw an operating margin increase to 17.9%, a 2.6% rise from the previous year, driven by the consolidation of the Machine Rental business and favorable export conditions.
- The B+W unit recorded strong order entry, completing its 2026 backlog, showcasing the effectiveness of its strategy in delivering customized technological solutions.
- Romi SA continues to invest heavily in technology, connectivity, and artificial intelligence, which is expected to generate value and sustainable results in the long term.
- The Rough and Machined Cast Iron Parts unit faced ongoing challenges, with a reduction in margin and productivity issues impacting results.
- The Industrial Entrepreneur Confidence Index has decreased to 47.3 points, indicating a shift from optimism to pessimism, which could affect future business sentiment.
- Romi Machines experienced a 10% decrease in order entry in the domestic market, attributed to a lower trust index and economic uncertainties.
- The company's gross margin decreased to 27.4%, with a drop in profitability observed across some business units.
- Romi SA's performance levels were below the Ibovespa index, reflecting challenges in achieving expected market performance.
Good morning, and welcome to the Romi conference call, where the results of the second quarter of 2025 will be discussed. Before proceeding, I would like to clarify that this conference call is exclusively for investors and investment professionals.
Any statements that may be made during this conference call regarding the company's business outlook, projections, and operational and financial targets are merely forecasts based on the management's expectations regarding the company's future. These expectations are highly dependent on market conditions and the overall economic performance of the country, the sector, and international markets; and are, therefore, subject to change.
Please note that this conference call is being recorded and held in Portuguese with simultaneous translation into English, accompanied by the slides available in the Results Center of our Investor Relations website at www.romi.com/investors.
(Operator Instructions) With us today are Mr. Luiz Cassiano Rosolen, CEO; and Fabio Taiar,
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