Financial Data and Key Metrics Changes - Revenue for the nine-month period grew over 13% year over year, reaching BRL 2,784 million, with adjusted EBITDA growth of almost 19% year over year, reaching BRL 1,292 million [5][19] - Adjusted EBITDA margin for the same period reached 46.4%, an increase of 200 basis points over last year [5][19] - Net income reached BRL 593 million, a growth of 20% year over year, with basic EPS reaching BRL 6.40, also a 20% increase [6][21] - Cash flow from operating activities rose by 11%, ending the nine-month period at BRL 1,292 million, with a cash conversion of 101.5% [5][20] Business Line Data and Key Metrics Changes - The undergraduate segment saw a 6% growth in the number of medical students, reaching over 25,000, while approved medical seats increased by almost 2% [6][13] - Continuing Education segment revenue grew by 11% year over year, reaching BRL 208 million [7][15] - Medical Practice Solutions revenue increased over 9% year over year, reaching BRL 128 million [7][16] - The ecosystem reached 304,000 active users, indicating strong engagement among physicians and medical students [7][17] Market Data and Key Metrics Changes - The number of paying users in Medical Practice Solutions reached 195,000, a 2% decrease year over year, while monthly active users accounted for 228,000, down from 249,000 [16] - Continuing education saw a 36% decrease in residency journey students, while graduate journey students grew by 26% [15][66] Company Strategy and Development Direction - The company aims to maintain leadership in medical education and expand its ecosystem, focusing on sustainable growth and social impact through initiatives like Instituto AFIA [10][11] - The company is exploring M&A opportunities and evaluating capital allocation strategies, including potential increases in dividends and share buybacks [31][38] Management's Comments on Operating Environment and Future Outlook - Management expects effective tax rates to converge to 15% from 2026 onwards due to new tax regulations [30] - The company remains optimistic about future growth opportunities and is confident in its ability to create value for shareholders [25][40] Other Important Information - The company has been recognized for its ESG initiatives, receiving the Valor 1,000 award for its performance in the education sector [11] - The company has strengthened its financial position through liability management, including the issuance of commercial notes [22][23] Q&A Session Summary Question: Effective tax rate and capital allocation strategy - The effective tax rate for the nine-month period was 9.7%, up from 5.1% last year, primarily due to provisions for new tax regulations [29] - The company is evaluating various capital allocation strategies, including M&A, buybacks, and dividends [32] Question: Capital allocation strategies and 2026 intake cycle - The company is analyzing M&A opportunities and plans to maintain around 200 approved medical seats per year [38] - Tuition for 2026 is expected to increase by around 5% to 5.2% over 2025 [40] Question: Ticket readjustment and demand for medical careers - The average ticket is expected to grow around 5%, with demand for medical careers remaining stable compared to last year [44][45] Question: Gross margins in Medical Practice Solutions and subscriber trends - Gross margins in Medical Practice Solutions increased due to cost management initiatives [50] - The company is reviewing its pricing strategy for clinical decision software to regain subscriber growth [52] Question: Recently acquired units and EBITDA margin expansion - The ramp-up for recently acquired units is expected to take time, with margins improving as student numbers increase [61] - The company has achieved significant margin expansion and continues to seek efficiencies across its segments [66] Question: Continuing education segment trends - The drop in residency journey students is a one-time effect due to a change in product offerings [67]

Financial Data and Key Metrics Changes - Time charter revenues for Q1 2025 were $54.9 million, a decrease of about 5% compared to $57.6 million in Q1 2024, attributed to a decrease in fleet size and increased drydock days [11] - Adjusted EBITDA decreased to $23.3 million from $24.9 million in Q1 2024, a decrease of 6% [12] - Net income increased to $3 million from $2.1 million in Q1 2024, mainly due to decreased interest and finance charges [12] - Cash reserves decreased to $187.7 million from $207.2 million at the end of 2024 [13] - Long-term debt decreased to $623.9 million from $637.5 million, reflecting a decrease of around 2% [13] Business Line Data and Key Metrics Changes - Fleet utilization reached 99.6% in Q1 2025, up from 99.1% in the same quarter last year [15] - The average time charter equivalent rate was $50,739 per day, an increase of 5% compared to $15,051 per day in Q1 2024 [14] - Daily operating expenses increased by 2% to $5,866 per day compared to $5,775 per day in Q1 2024 [16] Market Data and Key Metrics Changes - The dry bulk market has shown dull performance in 2025, with new building vessel contracting slumping to only 0.1% of the global fleet [4] - The overall market levels remain historically healthy, but sentiment is lacking despite stable cargo volumes compared to 2024 [4] - Time charter rates for Capesize vessels dropped from $35,000 per day in March 2024 to about $19,000 per day as of May 2025 [22] Company Strategy and Development Direction - The company focuses on staggered medium to long-term charters to avoid clustered maturities, ensuring earnings visibility and resilience against market downturns [10] - The company is modernizing its fleet and has secured improved charter hires, especially in the Capesize segment [5] - A strategic partnership was formed with an 80% equity interest in a joint venture to order new LPG vessels, indicating a diversification strategy [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is facing global economic and geopolitical uncertainties, impacting sentiment and performance [4] - Despite negative market conditions, the company believes it is well-positioned with a strong balance sheet and predictable cash flows to navigate through cycles [19] - The company anticipates that current FFA rates are not strong due to market conditions, but it aims to capture market upside through its chartering strategy [19] Other Important Information - The company declared a quarterly cash dividend of $0.01 per common share, totaling approximately $1.2 million [9] - The company has raised $25.6 million from the exercise of warrants under an ongoing program, with potential to raise up to $64.9 million if all warrants are exercised [8] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may have been brief or not included in the records [41][42]

Financial Data and Key Metrics Changes - The company achieved organic sales growth of 1.9% in Q4 2024, with adjusted EPS growing approximately 8.2% [6][10][22] - Adjusted free cash flow reached $682 million in Q4, the highest quarterly result since the spin-off, contributing to a total of $1.6 billion for the year [7][10][22] - The adjusted operating profit margin expanded by 50 basis points, with overall adjusted operating profit margin increasing by 30 basis points or more each year since the spin-off [9][10][22] Business Line Data and Key Metrics Changes - Service segment organic sales grew by 7.8%, while new equipment organic sales declined by 6.8% [18][20] - Maintenance and repair sales increased by 5.6%, with modernization sales accelerating to 18% growth in Q4 [20][22] - Service operating profit accounted for 93% of overall operating profit, up from 89% the previous year [21][22] Market Data and Key Metrics Changes - New equipment orders declined by 4% in Q4, primarily due to challenging market conditions in China, where orders fell by more than 20% [10][11] - Excluding China, new equipment orders increased approximately 11%, with the Americas showing strong growth in the second half of the year [11][12] - The Asia Pacific region experienced over 20% growth in new equipment orders, while EMEA saw a decline of high single digits in Q4 [11][12] Company Strategy and Development Direction - The company is transforming its China business to focus more on service and modernization, shifting from new equipment sales [8][30] - The modernization opportunity in China is significant, with a target of over 20% annual growth in modernization orders [31][32] - The company aims to maintain a sustainable shareholder-driven management strategy, with plans for share repurchases and dividend growth [10][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the service-driven business model despite macro headwinds in the new equipment market [10][23] - The outlook for 2025 anticipates net sales growth of 2% to 4% organically, with adjusted EPS expected to be in the range of $4 to $4.10 [28][40] - The company expects the global new equipment market to decline mid single digits in units, primarily due to the ongoing challenges in China [27][28] Other Important Information - The company received a gold rating from Ecovadis for the third consecutive year, reflecting its commitment to ESG initiatives [9] - The company is targeting approximately $200 million in annual run rate savings by the second half of 2025 through its uplift program [7][35] Q&A Session Summary Question: Can you expand on the China cost initiatives? - Management highlighted the structural changes in China and the focus on becoming more service-oriented, with targeted savings around 2% of new equipment revenue [44][46] Question: What about the service margin in Q4? - Management acknowledged a decline in service margin due to investments in field professionals, which are critical for future growth [51][53] Question: What are the expectations for modernization margins in 2025? - Management indicated that modernization margins are expected to improve, with a target of reaching double-digit margins over the medium term [71][78] Question: Can you discuss the restructuring costs? - Management outlined that approximately $250 million is expected for restructuring, primarily related to the uplift program and the transformation in China [81][83] Question: What is the outlook for new equipment backlog? - Management noted that while the new equipment backlog is currently down, they expect stabilization in China and growth in other regions to positively impact backlog in 2025 [97][100]