Earnings call transcript: Bandwidth tops Q3 2026 estimates on profit, revenue

Motiva reported a stronger Q3 2026 profit, with consolidated net profit reaching BRL 3.4 billion and adjusted net profit at BRL 800 million. Adjusted EBITDA saw a 13.4% year-over-year increase. The company's leverage improved, falling to 3.2x EBITDA from 3.6x, approaching the company's target range. Holding-company debt declined to BRL 2.4 billion from BRL 5.6 billion after the airports transaction.

Motiva's shares rose 0.27% to $14.64, indicating cautious optimism from investors. The company is focusing on its core businesses of highways and rail, with highways traffic up 1.6% in equivalent vehicles and light-vehicle traffic boosted by holiday travel. Rail passenger volumes improved due to major events in Rio de Janeiro and ancillary revenue through real estate, commercial activity, and naming-rights deals.

The business is undergoing a transformation, with a simpler structure, fewer layers, and a stronger emphasis on capital discipline. Management highlighted the progress made in profitability and balance-sheet repair, as reflected in the lower leverage and improved EBITDA. However, the shares remained near the lower part of their 52-week range, suggesting investors are waiting for more evidence of sustained growth.

Motiva's distribution to shareholders was BRL 1.5 billion, with interest paid on equity at BRL 1.5 billion. The company remains committed to its three priorities: simplification, focus, and value generation. Capital spending for 2026 is expected to be below 90% of guidance, mainly due to licensing and authorization delays. The company expects a more cautious approach to CapEx in 2027, separating flexible spending from mandatory project commitments.

Management reiterated that the payout policy remains unchanged, targeting around 50% of adjusted profit as dividends. The company is willing to support value-creating opportunities, even if leverage temporarily rises above 3.5x. Motiva also announced a capital markets day scheduled for Nov. 12 to provide further updates on strategy, value creation, and future opportunities.