By Brazil Stock Guide – Rumo S.A. (B3: RAIL3) said adjusted net income climbed to 266 million reais ($52 million) in the first quarter, compared with 188 million reais a year earlier, according to the company’s earnings report released in São Paulo on May 7. Net revenue increased 10.6% to 3.28 billion reais, while adjusted Ebitda rose 6.7% to 1.75 billion reais.
The Brazilian railway operator transported 20.2 billion TKU in the quarter, up 25.5% from a year earlier and a record for a first quarter. Rumo said the performance was driven mainly by the Northern Operation, which added 3.6 billion TKU to total volume, supported by stronger grain shipments and a normalization of soybean harvest timing after delays in the previous year.
The company also posted market-share gains in key corridors. In Mato Grosso, Rumo’s share rose 2 percentage points to 38%, while in Goiás it advanced 9 points to 33%. At the Port of Santos, its main destination, the company’s market share increased 12 points to 57%. In the southern ports of Paranaguá and São Francisco do Sul, share also rose 12 points, reaching 28%.
Rumo said the quarter closed a 12-month competitive repositioning cycle that began in the second quarter of 2025 after three consecutive years of price increases between 2022 and 2024. Tariffs declined across the consolidated rail business, with the average tariff falling 9.6% to 152.4 reais per thousand TKU, while fixed costs and expenses per unit dropped 15.7%.
The Northern Operation remained the company’s largest business, with transported volume rising 27.3% to 16.6 billion TKU. Net revenue in the unit rose 11.9% to 2.67 billion reais, and adjusted Ebitda increased 5.7% to 1.56 billion reais. Agricultural products accounted for most of the growth, with soybean transport up 33% and fertilizers up 26.4%.
In the Southern Operation, volume rose 21.5% to 2.5 billion TKU, helped by stronger grain flows after the company’s pricing reset. Net revenue rose 1.3% to 411 million reais. Rumo booked a non-cash impairment provision of 168 million reais for Malha Sul, while adjusted Ebitda increased 10.2% to 141 million reais.
Rumo’s container operation, which includes Brado Logística, transported 30,318 containers in the quarter, up 10% from a year earlier. Net revenue in the segment rose 15.4% to 199 million reais, while Ebitda increased 37.6% to 43 million reais, supported by higher-value cargo and tariff adjustments.
The company invested 1.77 billion reais in the quarter, broadly stable from a year earlier. Rumo said the Mato Grosso Railway project remains on schedule, with operations expected to start in the third quarter of 2026. The project is central to the company’s expansion strategy in one of Brazil’s main agricultural regions.
Net debt stood at 16.95 billion reais at the end of the quarter, up 34.7% from a year earlier. Leverage, measured as net comprehensive debt to adjusted Ebitda, was 2.1 times, compared with 1.6 times a year earlier and 1.9 times at the end of 2025. Rumo said the level remained appropriate for its business risk profile.
Operating cash flow rose 7.6% to 1.33 billion reais. After investment cash flow, cash generation was negative by 414 million reais, compared with a negative 556 million reais a year earlier. Total cash, including securities, ended the quarter at 5.79 billion reais.
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