By Brazil Stock Guide – SIMPAR S.A. (B3: SIMH3), the controlling company of a portfolio including JSL, Movida, VAMOS, and AUTOMOB, reported third-quarter 2025 results marked by a record adjusted EBITDA but a consolidated net loss, as high Brazilian interest rates heavily impacted its financial result. The performance underscores the tension between solid operational execution and a challenging cost-of-capital environment.
The company posted an adjusted net loss of R$119.3 million (approx. US$21.4 million) in 3Q25, compared to an adjusted net profit of R$159.9 million a year earlier. This was primarily driven by a 33.2% year-on-year increase in net financial expenses, which reached R$2.11 billion, reflecting higher average debt and soaring interest rates (average Selic of 15.00% in 3Q25 vs. 10.58% in 3Q24). Operationally, the group shone, with adjusted EBITDA hitting a record R$3.11 billion (approx. US$558 million), a 14.2% increase year-on-year. The adjusted EBITDA margin expanded by 2.1 percentage points to 27.5%. Net revenue excluding construction grew 5.5% to R$11.29 billion.
“We remain fully committed to unlocking the potential of the foundations we have built,” said CEO Fernando Antonio Simões, highlighting the group’s focus on cost control, pricing discipline, and optimizing invested capital to navigate the macroeconomic headwinds.
The results arrive as Brazilian companies grapple with the delayed effects of the recent high-interest-rate cycle, which particularly impacts capital-intensive businesses like SIMPAR’s holdings in vehicle rental, logistics, and dealerships. The group’s ability to grow its service revenue by 8.4% and significantly improve operational efficiency, evidenced by a 25% increase in EBITDA per employee, demonstrates resilience. A key positive was the sharp 40% reduction in net CAPEX to R$1.1 billion, signaling a strategic shift from heavy investment to maximizing value from its established asset base.
SIMPAR’s shares have been volatile throughout the year, reflecting investor concerns over leverage and interest rates. The stock’s year-to-date performance and recent closing price will be a key focus for the market following these mixed results. Analysts will likely scrutinize the company’s liability management, including recent fundraising of R$4.8 billion, and the progress of its excess capital optimization plan, which freed up R$583 million in the quarter.