Grupo Traxión, S.A.B. de C.V.

Greetings and welcome to the TRACCION second quarter 2025 conference call. At this time all participants are in a listen only mode. A question and answer session will follow a formal presentation. If anyone should require operator assistance during this conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Abby Lichsein, co-founder and executive vice president. Thank you. You may begin.

Hello, everyone. Welcome. I will start with the acquisition of Solistica. This is one of the most important integrations in the logistics industry in Mexico and a great opportunity for us to expand and penetrate our footprint both in the country and into the cross-border market, which is a very relevant opportunity for Traxion to exploit because its size, profitability, and our market position. This acquisition is transformational for us and tremendously strategic for our business plan. Solistica has a series of competitive advantages. Among the most relevant are best practices, processes, management footprint, and client base, just to name a few. We are working to blend them with our current advantages and we'll take out the absolute best. Synergies are significant as well. We are looking at many efficiencies across the board, with a special focus on commercial and operating improvements, together with the usual financial advantages of merging such a successful company. You will be able to see them during the second half of this year. With all that, Traxion has become the absolute leader in Mexican logistics with a strong operating and commercial leverage in line with our long-term strategy to become increasingly asset lighter in Mexico and pave the way towards an eventual expansion into the United States. We are very excited about the opportunity and believe that the benefits of the transaction will add a tremendous amount of value over time. Shifting gears, this was a difficult and complex quarter, both financially and operationally. We experienced a temporary disruption in volumes, both in logistics and in cargo. Such disruptions are short-term and were mainly caused by the uncertainty of the terrace environment. which drove many of our clients to temporarily reconfigure their shipments, which affected their normal volumes, which translated into unstable activity into the United States and back. Today, we are looking at a better environment in logistics, and there have been some signals of normalization. However, we have taken action and have been approaching new clients to have an even stronger base and help mitigate any future impact. Moreover, the efficiencies plan we implemented last year help tremendously to soften the negative impact of such disruptions. Having said that, and with Solistica already kicking into our platform, we are looking at revised figures for our guidance for 2025. We expect revenue growth to range from 14% to 16%, with an EBITDA margin between 16% and 17%. The CAPEX figure is approximately 2.4 billion pesos for organic growth and fleet renovations. Please be advised that we expect to close 2025 with a leverage level very similar to what we reported previously acquisition, which basically means that the transaction will become even more accretive and profitable. Thanks for your attention. With this, I conclude my remarks. I will now hand over to Rodolfo Wolf Antonio for a deeper dive into operations and financials.

Thank you, Abi. Welcome, everyone. As Abby mentioned, this was a particularly challenging quarter, marked by a high level of complexity driven by uncertainty, especially surrounding tariff-related developments between the United States and Mexico. I would like to share a few key operational highlights to help put things into context. First, as you have noticed, there were significant adjustments in the logistics and technology division, where we saw volume declines across nearly all our business lines. This was primarily driven by external factors, most notably tariff uncertainty. which led several clients to shift their shipping schedules, both for exports and imports. This resulted in temporary disruptions in some segments of the supply chain. Consequently, we experienced lower throughput across our three PL facilities, including e-commerce, and a short-term drop in volume processed through Traxporter. Fortunately, this trend was short-lived, and we are already seeing early signs of recovery. Additionally, the logistics and technology division no longer includes revenue from the B2C business line, which was largely phased out last year. This explains a portion of the year-over-year decline in revenue, although it also contributed to improved margins compared to the same period in 2024. In our cargo mobility division, we experienced both operational and volume-related adjustments, reflecting the close interdependence between logistics and freight. Despite these shifts, And even considering the effect of currency fluctuations, we achieved a notable 12% increase in revenue per kilometer, highlighting the strength of our pricing and commercial strategy. At the same time, we saw a 9.5% decrease in total kilometers, a 3.2% reduction in fleet, and an increase in cost per kilometer, mainly driven by the combined effect of lower volumes and FX adjustments. As fixed costs are allocated over fewer kilometers, this naturally results in a temporary rise in unit costs. However, we expect these costs to normalize as volume levels recover, helping to restore efficiency in the cost structure. In our people mobility business, we also observed a slight decrease in kilometer volume, mainly due to deliberate strategic actions, including pricing adjustments and the redeployment of fleet toward higher value client segments. That said, we are beginning to see solid results from these initiatives, as revenue is growing at a faster pace than costs, which is helping to push margins in the right direction. Despite a mild growth of revenues, both operating income and EBITDA increased more than 10% and the margin expansion of 128 basis points. These are the key highlights I wanted to share for this quarter. Thank you for your attention. I'll now turn it over to Wolf.