Ecorodovias (ECOR3.SA): 2Q‘26 Results: In-Line and Showing Good Capex Execution

Research evidence excerpt

Ecorodovias (ECOR3.SA): 2Q‘26 Results: In-Line and Showing Good Capex Execution

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30 Jul 2026 20:05:13 ET │ 12 pages

Ecorodovias (ECOR3.SA)

2Q'26 Results: In-Line and Showing Good Capex Execution

CITI'S TAKE

Buy Recurring net income (excluding EcoSul) of R$59M was a miss to Citi and

consensus estimates. Despite the miss, results were overall in line with Price (30 Jul 26 18:00) R$7.03

our expectations, with EBITDA marginally better despite the slightly Target price R$9.60

higher-than-expected costs. Capex came higher than expected but Expected share price return 36.6%

demonstrated a solid execution of the investments' backlog, which Expected dividend yield 4.4%

progressed on schedule. The a smaller FCF burn drove leverage slightly Expected total return 41.0%

lower than we anticipated, while capital structure looks well financed and

Market Cap R$4,895M under control despite the elevated leverage. We maintain our Buy-rating.

US$968M

2Q26 results — Net income adjusted for Ecovias Sul contract termination of

R$59M (EPS of R$0.09) compares to Citi’s R$64M (R$0.09), Bloomberg consensus

of R$77M (R$0.11) and R$169M (R$0.24) in 2Q’25. Net revenue excluding Filipe NielsenAC

construction revenue increased +1.0% y-o-y to R$1.84B, versus Citi’s R$1.78B and +55-11-4009-5213

consensus of R$1.82B. Adjusted EBITDA of R$1.35B slightly above Citi’s estimates of filipe.nielsen@citi.com

R$1.30B and in line with consensus, decreasing -1.1% y-o-y. Although we already

expected margins to come pressured by Ecorporto extension, costs came slightly

higher than expected, mainly on higher third-party expenses for optimizing

processes and implement free-flow operations. Below the EBITDA line, taxation

came well above our expectations, though partially offset by lower depreciation.