Brazil Diversified Utilities: Meeting with Solvi’s CFO – Key Takeaways

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05 Aug 2026 06:50:50 ET │ 12 pages

Brazil Diversified Utilities

Meeting with Solví´s CFO – Key Takeaways

CITI'S TAKE

We hosted Solví’s CFO (Frederico Guimarães) for a group discussion on

Brazil´s waste sector. Solví is a privately held, 50-year-old company, with

12k employees, which delivered R$5bn revenues and R$1.4bn EBITDA in

2025. The company operates 44 sanitary landfills with 11mn ton of

destination volume, is active in biogas/energy generation, carbon credits

and biomethane, with operations in in Argentina and Peru.

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Joao Pimentel AC

Felipe Lenza

Landfill economics remain the foundation of the business — One of the strongest

messages from management was that gate fees must fully remunerate landfill

economics on a standalone basis. Revenues from biomethane, electricity

generation, carbon credits and CO₂ monetization are treated as incremental upside.

Management explicitly stated that Solví´s landfills have seen an increase in gate fees

over recent years and no longer accepts low-priced contracts, preferring to preserve

returns instead of chasing volumes. While Solví doesn´t disclose its average gate fee,

it did mention it has several assets charging above R$100/ton. Management

believes well-located landfills represent natural monopolies, providing meaningful

pricing power while still requiring commercially reasonable negotiations with

customers.

Biomethane remains the company’s main growth driver — The company

highlighted the attractive economics of the business, with EBITDA margins of 58%,

limited maintenance capex and returns of at least 25% nominal (unlevered). Solví

currently operates three biomethane plants and has two larger projects under

construction, expected to start operations by late 2028. Management highlighted

that only 13 of its 44 landfills have sufficient scale to support biomethane projects,

leaving a sizeable long-term pipeline. Importantly, the company intends to develop

projects gradually, arguing that accelerating capacity additions could pressure

market pricing before demand fully matures.

Biomethane: attractive funding is a genuine edge — Management stressed that

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