Core Points - Ambipar Emergency Response's shares fell by 31% to 77 cents after trading resumed following a two-day halt due to the company's bankruptcy filing [1] Company Summary - The company's stock experienced a significant decline after the announcement of its bankruptcy, indicating a loss of investor confidence [1]

Core Points - NYSE American has initiated delisting proceedings for Ambipar Emergency Response due to the company's recent Chapter 11 bankruptcy filing [1][2] - The company has the right to appeal the delisting decision to the Listings Qualifications Panel, which will determine whether to proceed with suspension and delisting or allow continued trading [2] Company Summary - Ambipar Emergency Response's ordinary shares and warrants are subject to delisting from NYSE American [1] - The delisting is based on the company's disclosure of filing for Chapter 11 bankruptcy on October 21, 2025 [1] Industry Summary - NYSE Regulation is actively monitoring and enforcing listing standards, as evidenced by the initiation of delisting proceedings against multiple companies, including Ambipar Emergency Response [1][5][6]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Hertz Global Holdings Inc (NASDAQ:HTZ)**: - Recently appointed Mike Moore as Chief Operating Officer to enhance operational excellence [7] - Stock price decreased by approximately 19% over the past five days, with a 52-week low of $2.77 [7] - Current RSI value is 28.7, indicating it is oversold [7] - Shares closed at $5.60, down 10.3% on Monday [7] - Momentum score is 82.78 [7] - **Alaska Air Group Inc (NYSE:ALK)**: - Analyst Christopher Stathoulopoulos maintained a Positive rating but lowered the price target from $60 to $58 [7] - Stock fell around 24% over the past month, with a 52-week low of $39.79 [7] - Current RSI value is 24.7, indicating it is oversold [7] - Shares closed at $48.46, down 1.5% on Monday [7] - **Ambipar Emergency Response (NYSE:AMBI)**: - Reported FY24 net revenue of R$3.25 billion, reflecting a year-over-year increase of 25.4% [7] - Stock price decreased by approximately 76% over the past month, with a 52-week low of $0.72 [7] - Current RSI value is 20.9, indicating it is oversold [7] - Shares closed at $1.08, down 4.4% on Monday [7]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, typically below 30 [1] Company Summaries - **Hertz Global Holdings Inc (NASDAQ:HTZ)**: - Recently appointed Mike Moore as Chief Operating Officer to enhance operational excellence [7] - Stock has decreased approximately 19% in the last five days, with a 52-week low of $2.77 [7] - Current RSI value is 28.7, with shares closing at $5.60, down 10.3% [7] - **Alaska Air Group Inc (NYSE:ALK)**: - Analyst Christopher Stathoulopoulos maintained a Positive rating but lowered the price target from $60 to $58 [7] - Stock has fallen around 24% over the past month, with a 52-week low of $39.79 [7] - Current RSI value is 24.7, with shares closing at $48.46, down 1.5% [7] - **Ambipar Emergency Response (NYSE:AMBI)**: - Reported FY24 net revenue of R$3.25 billion, reflecting a year-over-year increase of 25.4% [7] - Stock has plummeted approximately 76% over the past month, with a 52-week low of $0.72 [7] - Current RSI value is 20.9, with shares closing at $1.08, down 4.4% [7]

Core Insights - Ambipar Emergency Response filed its annual report on Form 20-F for the fiscal year ended December 31, 2024, with the SEC on June 23, 2025 [1] - The 2024 Annual Report and audited financial statements are accessible on the SEC's website and the Company's website [1] - Hard copies of the audited financial statements are available to shareholders and warrant-holders upon request [2] Company Overview - Ambipar Emergency Response is a leading environmental, emergency response, and industrial field service provider in Brazil, with a global presence in 41 countries across various continents [3] - The company offers a comprehensive suite of environmental services to over 11,000 customers worldwide, focusing on accident prevention, compliance, industrial field services, training, and emergency response across all transportation modes [3]

Acquisitions and Integration - The company has made several acquisitions in recent years, including Girassol Apoio Marítmo Ltda and Ekman – Serviços Ambientais e Oceanográficos Ltda in 2023, as part of its strategy to expand operations in Brazil and North America[116]. - The successful integration of acquired companies is critical for the company, which may incur significant transaction costs and face challenges in realizing expected benefits from these acquisitions[117]. - Recent acquisitions were financed through cash and cash equivalents, as well as indebtedness, which may reduce the company's liquidity and affect its ability to pursue other strategic plans[129]. - The company may face risks related to successor liability for contingencies and damages arising from acquisitions that were not identified prior to the acquisition[121]. - Integration challenges may include difficulties in coordinating research and development teams and consolidating financial and administrative infrastructures, which could hinder expected synergies[127]. - The company may not be able to achieve anticipated cost savings and growth prospects from combining newly acquired businesses with its existing operations[132]. - The company’s growth strategy heavily relies on the successful integration of acquired companies, which may not yield the expected results[126]. Financial Risks and Liquidity - The company’s ability to meet financial ratios and tests required by debt instruments can be affected by events beyond its control, potentially leading to defaults[134]. - Liquidity risk may adversely affect the company's financial and operating performance, limiting growth potential[136]. - The company may face challenges in accessing adequate funding sources due to market downturns or operational issues, impacting liquidity[137]. - A significant change in liquidity levels or costs could materially affect the company's financial condition and operational results[139]. - The company intends to make investments for growth and may require additional funds for new products, technology enhancements, and acquisitions[140]. Market and Economic Conditions - The company operates in a highly competitive market, facing pressure from both large multinational and regional companies[148]. - Revenue primarily derives from contract renewals and new signings, with potential challenges in maintaining historical price levels due to competition[149]. - Economic uncertainty and geopolitical tensions, including the conflict in Ukraine, may adversely impact the company's financial condition and results[157]. - The company has not experienced material impacts from inflationary pressures, although inflation rates reached approximately 9.1% in June 2022, slowing to 2.9% in 2024[153]. - The ongoing sanctions against Russia, particularly in the energy sector, have led to fluctuations in fuel prices and changes in global supply chains, impacting production costs and operational expenses[160]. - The conflict between Israel and Hamas has resulted in significant geopolitical instability, with potential adverse effects on business operations and financial conditions due to disruptions in global supply chains[163]. - The company has no direct operations in conflict-affected regions, but clients and suppliers may be impacted, which could adversely affect business services[164]. Cybersecurity and Operational Risks - Increased cybersecurity threats have been reported, with external events potentially heightening the risk of attacks, which could lead to significant legal and financial exposure[165]. - The company relies on various information technology systems for operations, and any breaches or interruptions could adversely affect business and financial conditions[175]. - The company does not maintain separate cyber liability insurance, which may expose it to potential losses from security breaches[181]. - Cyberattacks have not yet resulted in material impacts on operations, but the potential for future incidents remains a concern[180]. - The company’s reliance on third-party service providers increases vulnerability to operational disruptions, which could materially affect business operations[178]. Compliance and Legal Risks - The company is subject to various Anti-Corruption Laws, which prohibit improper payments to government officials, and it may be held liable for violations committed by third parties acting on its behalf[224]. - The company is actively enhancing its anti-money laundering and anti-bribery compliance programs in collaboration with Ambipar ESG[228]. - The company faces reputational risks due to potential lawsuits, investigations, and negative media coverage, which could adversely affect its financial condition and market price of securities[229][230]. - The company is subject to extensive legal and regulatory requirements, particularly in Brazil, which may impose unforeseen regulatory expenses and affect operational costs[251][252]. - The company may incur losses if its internal controls do not adequately protect against exposure, which could negatively impact its financial results[215]. Operational Performance and Costs - Operational costs have fluctuated significantly, with substantial increases in fuel and utility costs potentially impacting profitability[234][235]. - The company may face challenges in passing increased operational costs onto customers due to competitive market conditions, which could adversely affect financial performance[236]. - Long-term business relationships with customers are crucial, as unilateral contract terminations could materially reduce revenue and impact financial stability[248][249]. - The company is dependent on the operational results of its subsidiaries, and any adverse changes in their performance could materially affect the overall business[239][241]. - Compliance with socio-environmental laws is critical, as violations could lead to administrative and criminal penalties, impacting the company's reputation and financial condition[255][256]. Economic and Political Environment - The Brazilian economy contracted by 4.1% in 2020 due to the COVID-19 pandemic, followed by growth rates of 2.9% in both 2022 and 2023, and 3.4% in 2024[274]. - Economic and political instability in Latin America, particularly in Brazil and Chile, may adversely affect the company's operations and financial condition[273]. - The company is subject to risks from foreign exchange fluctuations and changes in trade policy, which could impact its ability to source inputs and execute growth strategies[271]. - The political environment in Brazil has been affected by investigations into corruption, which may continue to impact the company's reputation and market perception[275]. - The company cannot predict future government policies in Brazil, which may lead to economic instability and affect its business operations[278]. Regulatory Changes and Compliance - The European Union AI Act, effective August 1, 2024, imposes strict limitations on AI systems, creating potential compliance costs for the company[182]. - Brazil's proposed AI legislation could introduce significant compliance obligations, including adherence to the Brazilian General Data Protection Law (LGPD)[183]. - The company faces risks related to non-compliance with evolving privacy and data protection laws, which could be costly and time-consuming[184]. - Unauthorized disclosure of personal data could harm the company's reputation and lead to litigation[185]. - The company may encounter complex compliance issues due to varying data protection laws across jurisdictions[186]. Management and Internal Controls - The loss of senior management could adversely affect the company's strategic plans and operational effectiveness[189]. - Material weaknesses in internal control over financial reporting were identified, particularly related to the consolidation process of recent acquisitions and the design of accounting functions[217]. - The effectiveness of the company's internal controls over financial reporting may be impacted by ongoing changes in business conditions and the adequacy of resources[210]. - The company has identified the need for ongoing resource allocation to maintain and improve the effectiveness of its internal controls and disclosure procedures[213]. - In November 2023, the company initiated a comprehensive evaluation of its risk management frameworks and internal control mechanisms, with a consultancy firm completing the assessment by January 2024[209].

Financial Performance - Net revenue for the nine-month period ended September 30, 2024, reached R$2,431,178 thousand, a 31.4% increase from R$1,849,431 thousand in the same period of 2023[4] - Gross profit for the period was R$413,589 thousand, up from R$352,745 thousand, reflecting a gross margin improvement[4] - Operating profit increased significantly to R$399,026 thousand compared to R$226,933 thousand in the prior year, indicating strong operational efficiency[4] - Net income for the period was R$141,523 thousand, a substantial increase from R$33,161 thousand in the same period last year[5] - Earnings per share (basic) rose to R$2.55 from R$0.33, demonstrating improved profitability per share[4] - The total comprehensive income for the period was R$339,447 thousand, compared to a loss of R$91,514 thousand in the previous year, indicating a strong recovery[5] - Cash generated from operating activities for the period was R$465,512,000, up from R$156,838,000 in the previous year, indicating a growth of 196%[8] - The operating profit for the Company was BRL 218,388 thousand, while the profit for the year amounted to BRL 138,799 thousand[169] - The Company reported a profit for the year attributable to controlling interests of BRL 76,302 thousand[169] Assets and Liabilities - Total assets as of September 30, 2024, amounted to R$5,209,573 thousand, an increase from R$4,309,172 thousand at the end of 2023[3] - Total liabilities increased to R$3,512,375 thousand from R$2,952,375 thousand, primarily due to higher loans and financing[3] - As of September 30, 2024, the total current assets were BRL 618,516 thousand, while current liabilities stood at BRL 358,566 thousand, resulting in current net assets of BRL 259,950 thousand[169] - The Company’s non-current assets totaled BRL 1,139,538 thousand, with non-current liabilities of BRL 465,617 thousand, leading to non-current net assets of BRL 673,921 thousand[169] Cash and Financing - The company reported a significant increase in cash and cash equivalents, totaling R$440,908 thousand compared to R$423,266 thousand at the end of 2023[2] - As of September 30, 2024, cash and cash equivalents totaled R$440,908,000, a decrease from R$510,919,000 at the end of September 2023[8] - The company plans to sell its non-strategic fleet in Brazil, generating approximately R$166,000,000 in cash, with a monthly rental cost of R$6,400, aimed at reducing gross debt[17] - The issuance of 200,000 simple debentures with a nominal value of R$1,000 each was approved on September 3, 2024, to strengthen the company's financial position[18] - The total non-derivative financial liabilities as of September 30, 2024, amounted to R$ 2,038,853, compared to R$ 1,622,257 as of December 31, 2023[198] Strategic Focus and Market Presence - The company is focusing on expanding its market presence and enhancing its operational capabilities through strategic investments and potential acquisitions[4] - The company has a presence in 16 countries and operates over 400 bases globally, employing more than 7,500 people, which supports its growth strategy in emergency response services[11] Accounting and Financial Reporting - The Unaudited Condensed Consolidated Interim Financial Statements are expressed in thousands of Brazilian Reais (R$) and include all subsidiaries up to the same accounting date[25][30] - The financial statements have been prepared on a going concern basis, indicating the company will be able to discharge its liabilities[29] - The company has not identified any significant effects from the adoption of new IFRS standards, including IFRS 17 and amendments to IAS 1 and IAS 12[32][34][36] - The financial statements reflect a common control transaction basis, indicating a consistent accounting approach for the group[24] - The Company recognizes revenue when control of promised services is transferred to the customer, reflecting the consideration expected in exchange for those services[144] - Revenue from emergency response services is recognized over time, based on the input method, as the customer receives and consumes the benefits of the service[148] Risk Management - The Company’s credit risk management includes evaluating client creditworthiness and monitoring credit limits, with no credit limit exceeded during the period[192][193] - The Company’s financial risk management focuses on market risks, including interest rate and liquidity risks, with conservative strategies defined for liquidity and profitability[179][184] - The Company has not been exposed to significant transactional foreign currency risks as of September 30, 2024, and December 31, 2023[200] Environmental and Regulatory Compliance - The Company has established environmental certified policies to comply with environmental laws and regularly analyzes environmental risks[199]

Financial Performance - Net revenue for the six months ended June 30, 2024, was R$1,419,574 thousand, a 17.5% increase compared to R$1,208,342 thousand for the same period in 2023[4] - Gross profit rose to R$249,707 thousand, reflecting an increase of 12.8% from R$221,288 thousand year-over-year[4] - Operating profit significantly improved to R$240,324 thousand, compared to R$95,344 thousand in the prior year, marking a growth of 152.5%[4] - Profit for the period was R$122,393 thousand, a turnaround from a loss of R$20,522 thousand in the same period last year[6] - Earnings per share (basic) increased to R$2.21, compared to a loss of R$0.17 per share in the previous year[4] - The company reported a total comprehensive income of R$312,894 thousand for the period, compared to a loss of R$145,197 thousand in the previous year[6] Asset and Liability Management - Total assets increased to R$4,967,482 thousand as of June 30, 2024, up from R$4,309,172 thousand at December 31, 2023, representing a growth of 15.3%[2] - Total current assets rose to R$1,658,706 thousand, up from R$1,440,224 thousand, indicating a growth of 15.2%[2] - Total liabilities increased to R$3,292,842 thousand as of June 30, 2024, compared to R$2,952,375 thousand at the end of 2023, reflecting a rise of 11.5%[3] - The company’s total equity as of June 30, 2024, was R$1,674,640 thousand, an increase from R$1,179,722 thousand as of June 30, 2023[7] Cash Flow and Operational Performance - Cash generated from operating activities for the first half of 2024 was R$291,815 thousand, compared to R$79,460 thousand in the prior year, indicating a strong operational performance[8] - The company reported a cash flow from financing activities of R$99,178 thousand in the first half of 2024, a decrease from R$702,562 thousand in the same period of 2023[8] - Ambipar Emergency Response's cash and cash equivalents at the end of the period were R$549,513 thousand, down from R$699,747 thousand at the end of June 2023[8] Business Operations and Market Presence - The company operates in 16 countries across multiple continents, enhancing its global presence in emergency response services[13] - Ambipar Emergency Response completed a business combination with HPX Corp. on March 3, 2023, which facilitated its listing on the NYSE American[12] - The company has over 400 bases worldwide and employs more than 7,500 people, with over 150,000 trained personnel available for emergency response[11] Corporate Governance and Structure - As of June 30, 2024, Ambipar Emergency Response maintains 100% ownership across all its subsidiaries, indicating strong control and integration within its operations[15] - The company became the holding company of the Group Response in June 2023 through a business combination, with Emergência Participações S.A. becoming a wholly owned subsidiary[18] - The consolidation method for all subsidiaries is full, ensuring comprehensive financial reporting and accountability[15] Financial Reporting and Compliance - The Unaudited Condensed Consolidated Interim Financial Statements have been prepared on a going concern basis, indicating the company can discharge its liabilities[24] - Management confirms that all relevant information for the financial statements corresponds to what is used in administration[22] - The company has not applied new IFRS standards in Brazil until they are issued in Portuguese and approved by the Federal Accounting Council[26] Risk Management - The company has established conservative financial risk management strategies to optimize liquidity, profitability, and safety[170] - Credit risk is managed through regular evaluations of client creditworthiness, with no credit limits exceeded during the period[184] - The Company’s liquidity risk management includes continuous monitoring of cash flow forecasts to ensure sufficient liquidity for operational needs[186] Accounting Policies - The company recognizes identifiable assets and liabilities at fair value during business combinations, measuring goodwill as the excess of consideration transferred over net assets acquired[54] - The expected loss on doubtful accounts is established based on an analysis of each client's default risk, considering various factors such as financial situation and payment history[56] - The company applies judgment in revenue recognition, assessing contract terms to determine if revenue should be recognized over time[50]

Financial Performance - Net revenue for the first quarter of 2024 was R$679,067, representing a 13.9% increase from R$596,255 in the same period of 2023[4]. - Gross profit for Q1 2024 was R$129,352, compared to R$111,143 in Q1 2023, indicating a growth of 16.4%[4]. - The company reported a net income of R$33,201 for Q1 2024, a significant recovery from a net loss of R$67,601 in Q1 2023[4][6]. - Earnings per share (basic) improved to R$0.60 in Q1 2024, compared to a loss of R$0.35 in Q1 2023[4]. - Total comprehensive income for Q1 2024 was a loss of R$91,474, an improvement from a loss of R$168,406 in Q1 2023[6]. - For the three months ended March 31, 2024, Ambipar Emergency Response reported a profit of R$33,201 thousand, a significant improvement from a loss of R$67,601 thousand in the same period of 2023[9]. - Cash generated from operating activities was R$235,544 thousand, compared to a cash used of R$31,539 thousand in the prior year, indicating a turnaround in operational efficiency[9]. - Net cash from operations reached R$126,279 thousand, a recovery from a negative cash flow of R$105,531 thousand in the same quarter of 2023[9]. - Total revenue for the company reached $303.484 million, with a gross profit of $84.297 million, indicating a gross margin of approximately 27.8%[180]. - The company reported a profit for the year of $61.648 million, with a profit attributable to controlling shareholders of $35.299 million[180]. Assets and Liabilities - As of March 31, 2024, total assets increased to R$4,453,778, up from R$4,309,172 as of December 31, 2023, reflecting a growth of approximately 3.35%[2][3]. - Total current liabilities decreased to R$710,157 as of March 31, 2024, down from R$803,022 at the end of 2023, a reduction of approximately 11.5%[3]. - Total non-current liabilities rose to R$2,340,134 as of March 31, 2024, compared to R$2,149,353 at the end of 2023, an increase of approximately 8.9%[3]. - The company’s cash and cash equivalents increased to R$532,929 as of March 31, 2024, up from R$423,266 at the end of 2023, marking a growth of 25.9%[2]. - Current net assets amounted to $156.062 million, reflecting a strong liquidity position[180]. - Non-current net assets totaled $665.598 million, contributing to a total net asset value of $821.660 million[180]. Investments and Acquisitions - The company completed a business combination with HPX Corp, resulting in a 70.8% ownership interest held by Ambipar Group post-transaction[13]. - The company announced the acquisition of 51% of Ambipar Response Tank Cleaning S.A. in July 2023, which has a 100% stake in Ambipar C-Safety Comércio, Indústria e Serviços Ltda, consolidating its market position[28]. - Ambipar Response Marine S.A. acquired 60% of the share capital of Zenith Marítima Eireli in September 2023, expanding its service offerings in maritime emergency response[29]. - The group has a 70% interest in Ambipar Response ES, which controls several subsidiaries, including Ambipar Response Remediation S.A. with a 51% stake, indicating a strong foothold in environmental services[30]. - In September 2023, the company announced the acquisition of 70% of the share capital of SMR Socorro Médico e Resgate Ltda, enhancing its emergency medical services capabilities[33]. - The acquisition of 70% of the share capital of SSMR Saúde Ocupacional Ltda. Epp in September 2023 further diversifies the company's service portfolio in occupational health and safety[33]. - Ambipar Response Dracares Apoio Marítimo e Portuário Ltda announced the acquisition of 80% of Girassol Apoio Marítimo Ltda in February 2023, strengthening its maritime support services[23]. - Ambipar Holding Canada Inc. established a new holding company, Ambipar Response Industrial Services Canada, transferring all operating companies of "Industrial Services" and acquiring 100% of 1653395 Alberta Ltda, resulting in a 70% control of the new entity[34]. - Ambipar Tank Cleaning S/A announced the acquisition of 51% of Unidroid, giving the Group a 26.01% control over the subsidiary[35]. Operational Efficiency and Cost Management - The company maintains a strong focus on operational efficiency and cost control to enhance profitability[180]. - Operating profit was reported at $97.910 million, showcasing effective cost management strategies[180]. - The company has established a financial risk management program focusing on market risks, including interest rate and foreign currency risks, to minimize adverse effects on financial performance[195]. - The management believes that the risk of significant changes in income and cash flows due to interest rate fluctuations is low, given the structure of its debt[199]. Financial Reporting and Compliance - The Unaudited Condensed Consolidated Interim Financial Statements are expressed in thousands of Brazilian Reais (R$) for the three months ended March 31, 2024 and 2023[37]. - The financial statements reflect a reorganization where Emergência Participações S.A. became a wholly owned subsidiary of Ambipar Emergency Response in March 2023[38]. - Management confirmed that all relevant information for the financial statements corresponds to that used in administration, prepared on a historical cost basis[42]. - The Company is evaluating the impact of new IFRS standards, including IFRS 17 and amendments to IAS 1, which may affect future financial statements[46][49]. - The Company has determined that the adoption of IFRS 17 had no effect on its consolidated annual financial statements[48]. - The financial statements include results from all subsidiaries, with intra-Group balances and transactions eliminated in full[45]. - Management's estimates and assumptions in preparing the financial statements may lead to significant adjustments in future years[41]. Revenue Recognition - Revenue is recognized when control of services is transferred to customers, with specific criteria for each activity[157]. - The company generates revenue from emergency services, including environmental response to disasters, with pricing based on daily, hourly, or job rates[159]. - The company recognizes revenue over time as services are performed, using the input method based on time and materials incurred[160]. Risk Management - Interest rate risk is associated with loans pegged to long-term interest rates, with a significant portion of loans linked to fixed rates, minimizing the risk of significant changes in income and cash flows[199]. - The company does not have operations quoted at commodity prices, thus it has no exposure to commodity price risks[195]. - Financial instruments are recognized at fair value plus any transaction costs directly attributed to their acquisition or issue[192]. - The management of financial risks is conducted through conservative strategies aimed at liquidity, profitability, and safety[190].

Financial Reporting - Ambipar Emergency Response filed its annual report on Form 20-F for the fiscal year ended December 31, 2023[5] - The 2023 Annual Report and audited financial statements are available on the SEC's website and the Company's website[6] - Hard copies of the audited financial statements can be requested by shareholders and warrant-holders free of charge[6]