Q2 2025: Eletrobras, Dexco, and Estapar—Three Companies, Three Different Realities

Brazil’s second quarter of 2025 saw Eletrobras, Dexco, and Estapar publish revealing results in their official financial disclosures.

Although all three reported headline growth in some areas, the underlying numbers tell three very different stories about costs, risks, and the future of each company.

Eletrobras Struggles With Costs Even as Revenue Rises

Eletrobras, Brazil’s main power provider, reported net operating revenue of R$10.2 billion ($1.8 billion), up 21% year-on-year.

Despite this, the company swung to a net loss of R$1.3 billion ($232 million), after posting a profit a year ago. This happened because costs and one-time expenses rose sharply.

The company’s EBITDA fell dramatically to R$1.3 billion ($221 million), dropping about 72%. Its capital expenditures stayed nearly flat at R$2.0 billion ($350 million).

Net debt improved slightly to R$40.1 billion ($7.0 billion) but remains very high for cash-heavy infrastructure. Eletrobras maintained its generation capacity and grid size, but output dropped 7%.

This was mainly due to unfavorable weather for hydropower—an ongoing Brazilian challenge. The official filings reveal a company with robust sales power, yet real vulnerability to rising expenses and regulatory swings.

Eletrobras illustrates that in Brazil, big revenues in heavy industry do not always bring stable profits. Cost control, debt handling, and adapting to climate risks now shape every quarter.

Dexco: Asset Values Shake Profits Despite Growing Sales

Dexco, which used to be Duratex, is a big name in Brazilian construction and wood supplies. In Q2 2025, it earned R$2.1 billion ($372 million) in revenue, up 6%.

However, its net profit plunged to just R$32 million ($6 million), mainly due to sharp falls in the value of its biological assets—principally its plantations.

These “paper losses” are a direct result of changes in how the company must value its forests for accounting. This quarter, Dexco recorded a R$72 million ($13 million) gain from biological asset revaluation, but that was nearly 76% less than the prior year.

Core operational profit (EBITDA) rose 18% to R$443 million ($78 million), and the EBITDA margin stood at 21%. Net debt rose to R$5.5 billion ($965 million), highlighting ongoing investment needs.

Dexco’s experience is a warning about the impact of market prices and regulatory rules on asset-heavy businesses. As biological asset accounting swings, profits can move suddenly, even when the core business is steady.

This creates uncertainty for investors and management, as official financial statements largely reflect how outside rules value assets, not just company performance.

Estapar: Technology and Expansion Fuel Modest Gains

Estapar operates Brazil’s largest network of parking lots. In the second quarter, its revenue increased nearly 20% to R$462 million ($81 million), and net profit improved 30% to R$4.8 million ($844,000).

The company’s growth comes from expanding its operations to 789 sites (up 10%) and a focus on digital services. The Zul+ app drove R$7.3 million ($1.3 million) in revenue, up 34% in one year.

Adjusted EBITDA increased 14% to R$88 million ($15 million), with an EBITDA margin at 19%. Official reports show that Estapar’s strategy combines asset expansion with increased adoption of digital solutions.

This approach allows the company to weather competitive and economic pressures. But, as with other Brazilian firms, legacy debt costs and market competition continue to challenge margins.

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