In This Article:
Release Date: April 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Romi SA (BSP:ROMI3) reported a significant growth in order entry for the first quarter of 2025, with a 31.2% increase in the roaming machines unit compared to the same period last year.
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The company's BW German subsidiary saw order entry almost double compared to Q1 2024, contributing to a robust order backlog of 430 million rials.
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Romi SA's rental revenue grew by 27.9%, now representing approximately 25% of the revenue of the roaming machinery unit.
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The company achieved a 41.4% growth in consolidated order entry and a 31% increase in net revenue, showcasing its ability to adapt and innovate.
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Romi SA continues to invest heavily in technology, connectivity, AI, and new generations of machines, positioning itself for sustainable growth.
Negative Points
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Despite the growth in order entry and revenue, Romi SA experienced a reduction in gross profit, particularly in the BW and cast machines units.
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The company's EBIT margin declined by 0.5% points, indicating pressure on profitability despite increased sales volumes.
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Romi SA's shares performed below the Bovespa index over the past two years, reflecting sensitivity to macroeconomic fluctuations.
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The automotive sector remains sluggish, impacting the company's revenue growth in this segment.
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There was a slower-than-expected recovery in the production lines for casting machine parts, affecting the operating margin negatively.
Q & A Highlights
Q: Can the BW machines gain more market share in the US and Asia sectors? A: BW manufactures heavy machines with complete turnkey solutions for major projects globally, including the US, Asia, China, Europe, and Nordic countries. The market is oriented towards such solutions, and BW is recognized for its large engine solutions for energy generation systems. The demand for BW's products is tied to the global demand for energy station generators, with a solid order backlog for 2025 and 2026. Respondent: CEO
Q: What are the key drivers behind the significant growth in order entry and net revenue? A: The growth in order entry and net revenue is driven by a 31.2% increase in the roaming machines business unit and a doubling of order entry in the BW German subsidiary. This reflects customer trust and the effectiveness of delivering customized, complex technological solutions. Respondent: CEO
Q: How did the agricultural segment perform, and what is the outlook? A: The agricultural segment showed signs of recovery, with expectations for gradual normalization of productivity over the coming quarters. This is expected to drive growth in production volumes, particularly in rough and machined cast iron parts. Respondent: CFO