This article first appeared on GuruFocus .
-
Net Operating Income:BRL309.8 million for Q2 2026.
-
Adjusted EBITDA:BRL26.8 million, with a margin of 8%.
-
Order Backlog:BRL309.4 million, up 6% compared to Q1 2026.
-
Consolidated Portfolio:Over BRL800 million.
-
Net Operating Revenue Growth:5.9% increase compared to Q2 2025.
-
BW Subsidiary Revenue:BRL88.7 million for Q2 2026.
-
Interest on Equity:BRL5.6 million in June 2026.
-
Net Sales by Business Unit:Romi Machines account for 59% of consolidated revenue.
-
Revenue by Geographic Region:Brazil 63%, Europe increased by 20%, U.S. increased from 2% to 8%.
-
Order Entry Backlog:BRL309 million in new orders, a reduction of 7.1% compared to Q2 2025.
-
Net Income:BRL14 million, with a net margin of 4.2% for Q2 2026.
-
Cash Position:BRL368 million in cash, with net debt of BRL169 million.
-
Warning! GuruFocus has detected 7 Warning Signs with BSP:ROMI3.
-
Is BSP:ROMI3 fairly valued? Test your thesis with our free DCF calculator.
Release Date: July 15, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Romi SA ( BSP:ROMI3 ) reported a solid order backlog of over BRL800 million, providing a strong foundation for future quarters.
-
The company's German unit, BW, showed significant revenue growth and maintained a solid order backlog, indicating successful project deliveries.
-
Romi SA's diversification strategy is yielding results, with the introduction of new solutions like Romi IA and Romi Pulse, and a new generation of vertical lanes.
-
The company experienced a 6% increase in order backlog compared to the first quarter of 2026, highlighting its ability to generate new business opportunities.
-
Romi SA's machine rental business has achieved a balanced free cash flow since the fourth quarter of 2024, with expectations of positive cash flow by the end of the year.
Negative Points
-
Romi SA's adjusted EBITDA margin decreased to 8% from 27.7% in the same period the previous year, indicating a decline in profitability.
-
The company faced challenging market conditions with low confidence levels among industrial entrepreneurs, impacting overall performance.
-
There was a reduction in the gross margin for Romi Machines due to lower export levels and increased commercial efforts.
-
The Rough and Machined Cast Iron Parts segment experienced a significant reduction in revenue and gross margin due to decreased demand in key sectors.
-
Romi SA's net income decreased from BRL15.6 million to about BRL14 million, resulting in a net margin of 4.2% for the second quarter.
Q & A Highlights
Q: When you machines rental, that consumes a significant amount of initial CapEx. How long does the management estimate that this will generate a positive cash flow without the need for new capital raising? A: The machine rental business has achieved a balanced free cash flow since the fourth quarter of 2024. This year, we expect the free cash flow to be positive, with the backlog for rentals and resales exceeding CapEx needs. The default level is low, and we maintain solid credit control and billing processes.
Q: Can you talk more about renting? What is the strategy, and how many machines were rented in total? A: The rental model allows clients to use new machines, enhancing competitiveness with lower investment. Contracts typically last one to two years, after which machines are refurbished and sold at lower costs, especially in the Asian market. This strategy has been successful and increases client loyalty.
Q: Is there any cost reduction or staff reduction plan in place? A: We are adjusting our staff according to market demand levels. While we maintain a good utilization level in Romi Machines, we are prepared to react quickly to changes in demand, both in growth and reduction scenarios.
Q: BW has presented good revenue values and order backlogs, but the margin remains low. Is this the customary level, or are you expecting improvements? A: BW's projects are long-term, affecting quarterly revenue. We expect better performance in the fourth quarter with project deliveries. Overall, we anticipate a better year in 2026 compared to 2025, including improved margins.
Q: Is there any plan to generate new business outside traditional sectors given the complex scenario in Brazil? A: We are exploring new business opportunities, such as the residential project and Romi Pulse, which offers solutions for clients and machine operators. These initiatives aim to maintain or grow our market share despite challenging conditions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
