By Brazil Stock Guide – MRS Logística delivered a solid set of third-quarter results, with net revenue rising 5.9% to R$2.03 billion and EBITDA advancing 12.8% to R$1.10 billion, supported by higher transported volumes and tariff adjustments. The EBITDA margin widened to 54.4%, its strongest level in recent quarters, underscoring cost discipline and operational efficiency. Net income came in stable at R$461 million, while leverage increased following the company’s 13th debenture issuance, which pushed gross debt to R$9.9 billion.
Operating Momentum Driven by Strong Cargo Mix
MRS transported 57.5 million tonnes in the quarter, up 4.6% year over year, with mining representing 60.7% of the mix and general cargo 39.3%. Iron ore exports were the main driver, reaching 31.4 million tonnes, an increase of 4.2% from a year earlier and 7.2% versus the prior quarter. The company also reported a strong performance in general cargo, which rose 8% year over year to 22.5 million tonnes, with standout growth in agricultural products and pulp.
Soybean transport surged 142%, reflecting a shift in customer commercialization strategies, while pulp volumes rose 30% due to strong client performance and increased throughput from partner railways. Sugar also posted double-digit growth with the addition of a new client at the Pederneiras complex. Container volumes grew 12.8% quarter-on-quarter, driven by new clients and increased share in the Belo Horizonte–São Paulo and Santos–São Paulo corridors.
Efficiency Gains Support Margin Expansion
The improvement in profitability was driven by higher volumes, tariff recomposition, and lower operating costs. Diesel expenses fell by R$13.6 million, while regulatory obligation accruals were materially lower than in the 3Q24 comparison base. EBITDA rose to R$1.10 billion, with margin expansion of 3.3 percentage points year over year.
Net income held steady at R$461 million. Despite the strong operating performance, higher financial expenses linked to the recent debt issuance limited bottom-line growth. Still, operating cash generation reached R$1.26 billion, contributing to a cash balance of R$4.49 billion at the end of the quarter.
Debt Rises Sharply but Leverage Remains Under Control
MRS closed the quarter with net debt of R$5.36 billion, up 36.9% year over year. Gross debt increased 61% after the 13th debenture issuance, part of the company’s strategy to strengthen liquidity and extend debt maturities. Even with the higher balance sheet leverage, the net-debt-to-EBITDA ratio remained at 1.4x, in line with the previous quarter and comfortably within covenant limits.
Capital expenditures totaled R$866 million in the quarter, a 16.8% increase from a year earlier, reflecting continued investments in yard expansion, modernization of the rail network, and receipt of new locomotives. Year-to-date capex reached R$2.58 billion, up 33.6%.
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