Rumo Sa

And we will begin the Q&A session. This presentation is being recorded and simultaneous translation is available by clicking on the Interpretation button. If you are listening to the video conference in English, you have the option to mute the original audio in Portuguese by clicking on Mute Original Audio. Before proceeding, we would like to reiterate that forward-looking statements are based on Rumo's executive board's beliefs and assumptions and information currently available to the company. These statements involve risks and uncertainties as they relate to future events and depend on circumstances that may or may not materialize. We recommend that you refer to the disclaimer on the second page of the presentation. Now, I'll turn the conference over to Mr. Felipe Saraiva, Rumo's Head of Investor Relations. Mr. Saraiva, you may begin the presentation.

Good afternoon, everyone, and thank you for joining Rumo's earnings conference call for the fourth quarter of 2025. Let me start with the highlights on slide three of the presentation. To close the quarter, we transported volume of R$22.9 billion. the all-time high performance in a four-scale. For the full year, volume increased 5% as a result of structural gains in capacity and operational efficiency. The combination of higher volumes and disciplined execution with lower costs and expenses allowed us to maintain resilient margins. I would like to highlight the 11% nominal reduction in unit fixed costs, showing better productivity levels. Adjusted BIDA reached 1.8 billion BIL in the quarter. an increase of 6% year over year. Investments were 1 billion and a half BRL in the quarter, in line with our planning for the period. Financial leverage at the end of the quarter was 1.9 times the net debt to adjusted EBITDA ratio, stable compared to the previous one. Moving to page four, I will present our market share in the quarter. Our market share remained at consistent levels, reaching 48% in Mato Grosso, 36% in Goiás, and 65% at the port of Santos. It's important to note that the fourth quarter had an exceptionally high comparison base for market share. In the fourth quarter last year, export volumes were unusually low, which temporarily increased our market share in that period, since we booked our capacity at the beginning of the season. Throughout 2025, we observed a normalization of the market dynamics. with market share returning to more normalized levels since the second quarter of the year. Now, moving to page five, I will share more details about this market dynamic in the Santos Corridor with our main market share. Let me start by reminding that the railway capacity is shared between the Goiás and Mato Grosso markets. functioning as a system of communicating vessels. Rain exports in these markets increased compared to 2024, although still below the peak observed in 2023. In this scenario, we expanded our market share compared to 2023, supported by the efficient use of our capacity. I would like to highlight the operational flexibility of the railway. with the simultaneous transportation of soybean, corn, and soybean meal throughout almost the entire second half of the year, maximizing the use of our assets. In the soybean complex, we recorded volume growth and market share gains compared to the 2023 crop. In corn, the record production was more directed to the domestic market, with higher carryover inventories at the end of the season. The railway remained the dominant transportation mode at the Port of Santos, reinforcing our key role in the transportation of agricultural commodities from the Midwest of the country. Moving to page six with the operational indicators, we increased volumes in the north and operation by 14%, which means more trains running throughout our system. Even so, we maintained stability in our main operational indicators, including trans time and dwell time at the Port of Santos. Regarding energy efficiency, we reduced fuel consumption by 2%, with good performance in both the northern and southern operations. On slide 7, I present the operational results and volumes. In the northern operation, I would like to highlight the strong performance in grains, with the simultaneous transportation of the three commodities and growth in AlvoSol commercial portfolios. In the southern operation, we also delivered a quarter of growth, with highlights in the agriculture commodities portfolio. Moving to page eight, let's look at the highlights for revenues and tariffs. In the fourth queue, we continued the commercial adjustment that started in the second quarter of the year. It's important to remember that the 2024 comparison base reflected a scenario with high expectations for the corn market, which did not materialize over the last two seasons. In this context, transportation prices are now reflecting more closely the actual dynamics and seasonality for our markets. I would like to reinforce our commercial strategy of maximizing value through the efficient use of our capacity. On page 9, I present the quarterly EBITDA. EBITDA increased 8% in the quarter, reaching 1.8 billion BRL. In the northern operation, The better performance in fixed costs and expenses, in addition to tax-related benefits of roughly 80 million BRL, helped support stable results, even in environments of adjusted prices. In the software operation, the higher transported volumes offset the lower average prices during the quarter. In addition, we had tax benefits of roughly 44 million BRL, which also contributed to the quarterly performance. Moving to page 10, we present the financial results and net income. Net financial expenses in the quarter were 721 million BRL, mainly reflecting a higher net debt base and interest rates. Even so, we delivered adjusted net income of 441 million BRL in the quarter and 2.1 billion BRL in 2025, both growing year over year. On slide 11, we move to debt and leverage. The net debt at the end of the quarter was 15 billion and a half BRL, reflecting the cash generation during the period. The financial leverage ratio was 1.9 times the same level as the previous quarter. Our liquidity position remains strong with $7.5 billion in cash position at the year end and a well-distributed debt to maturity profile. As presented in the chart on the right, we have no significant maturity in 2026 and 2027. Additionally, we have 2.7 billion BRL in committed credit lines that remain unrolled. On page 12, we present investments in the quarter. We invested 1.5 billion BRL in the quarter with 490 million BRL in recurring maintenance and 973 million BRL in expansion. At the Ferrovia do Mato Grosso project, we have accumulated roughly 4 billion BRL in investments since the beginning of the construction. with 80% of physical progress at the end of the year. Now let's move to page 13 with an update on the soybean market. In the state of Mato Grosso, production is estimated at 52 million tons. Harvesting is progressing normally in the region, slightly above the historical average. Exports from the state are expected to be slightly higher than the last year, with an estimated 13 million tons exported. Moving now to page 14, with the corn outlook. Corn production in the state of Mato Grosso is expected to remain at a high level, close to 60 million tons. The expansion of planted area by roughly 400,000 hectares supports strong agricultural production levels in the state. The quartz saffron seeding pace is also slightly faster than the historical average. Exports from the state are estimated at roughly 24 million tons, with strong production levels offsetting the increase in domestic demand. This concludes my presentation, and we are now available for the Q&A session. Thank you.

Joining us today are Mr. Pedro Palma, Mr. Guilherme Machado, and Mr. Felipe Saraiva. Before we begin the Q&A session, Mr. Pedro Palma would like to say a few words. Please go ahead, Mr. Palma. Thank you. Good afternoon. Thanks for joining us on Bruno's earnings release call. I'd like to start by reiterating that 2025 was a solid execution year in our operation. We have proven our ability to break records and shown our resilience and flexibility to navigate through different market scenarios. As Saraiva said, for instance, we had to operate products such as soybean, corn, and soybean meal simultaneously during the second semester. We also made significant progress in our efficiency agenda, both energy efficiency, proving the value of rail engineering use of technology that have allowed us to use 135 cars in the north operation. Improving the whole logistics network and reducing fixed costs and unit SG&A showing our discipline in reducing company costs and also improving structures and processes. These are inherent values to our culture and they will continue to be strengthened looking forward. According to our plan, we also made all the plan investments for the year. I'd like to highlight the progress in phase one of the Mato Grosso Railway as we announced in the material we shared with you yesterday. So 80% physical execution halfway through the year and on track for what we had mentioned. and this is no secret to you, was the market environment. We had to do some practical price repositioning, especially in the grains market, and we concluded that repositioning now this quarter in 2025. To remind you of what happened in the tariff scenario and providing a bit more detail on the north system, we increased prices. by approximately 70% between 22 and 24. When we started 25, in the first quarter, we realized that we were too expensive compared to other logistics alternatives. So we had to do some pricing repositioning to adjust our pricing level to market levels to make sure that we could continue to be the best most suitable competitive solution to be the first choice in logistics for the clients and markets where we operate. We're confident that now we are at a more suitable pricing level. We're working on our value creation, long-term value creation agenda at the company using our available capacity intelligently. And we also believe in the positive structural side of our market. Rumo is a single logistic platform because of the position of our railway and our terminals and we operate in the best markets such as Mato Grosso and Goiás where there's growing demand and Rumo has the ability to lead and logistics solutions to meet that demand. One point I'd like to mention is safety. which continues to be a non-negotiable value to us. In 2025, we restructured all of our safety and security process management. We reduced our incident frequency rate by 40% both with last time and no last time and safe operations are productive operations. We still have some work to do For instance, the rail security, there have been some events, you may have seen it in the media in the second half of the year. We did have a couple of agents that led to a rail incident frequency above what we had expected, but rest assured that all of the events have been analyzed in depth and all the lessons learned have been brought in-house and there was nothing structural in common among all those incidents, but each one of them was a lesson learned that will make us more resilient, more safer and more secure. As I said, safety and security is not a priority. It is a value that we will always continue to pursue. And as for the bottom line, I'd like to reiterate how solid our balance sheet is. We have been efficient in raising funds in the financial market. We raised close to 4 billion in new funding lines, reimbursed credit lines or undrawn credit lines, which ensures financial instruments at a very competitive cost and with a long-term maturity. So that will allow us to manage any turbulence with peace of mind. So the company is concluding the year with a very solid balance sheet, relevant operating indicators, very liquid cash position, and a great position in terms of investments execution profile. Looking forward, before we move on to the Q&A session, you've seen our results. volume results in January and February. We started off the year with solid volumes in both operations, both north and south, which makes me excited and confident with regards to the plan we'll be executing on in 2026. And absolutely sure that the company is ready to continue with its agenda to execute and from the investments that are being made. Now let's move on to the most interesting part of the presentation, the Q&A. Myself, Guilherme and Felipe are here to take your questions. Have a great afternoon. We will now begin the Q&A session. To ask a question, please click on raise hand. If your question has been answered, you can leave the queue by clicking on put hand down. We kindly ask that you ask only one question at a time so everyone gets a chance to ask their question. If we have enough time at the end, we will have another round of questions. Questions in writing via the Q&A icon will be answered after the conference by Rumo's investor relations team. First question is from Mr. Lucas Martins. Mark Iori from BTG Patrol. Please go ahead, Mr. Mark Iori. Thank you. Hi, good afternoon. Based on your disclosure and your comment on the pricing repositioning, Pedro, I understand that you've concluded the tariff repositioning process, so What exactly does that mean now going into this new year? What kind of tariff competitive process are you considering for the Q1 or first half of the year? We've seen road transportation now coming to life, especially at the beginning of the year, so I'd like to understand what your commercial dynamics will be in terms of tariff repositioning that you mentioned for Q1 and Q2. so that we can model it. Thank you.

Hi, Lucas.

Thanks for the question. This is Pedro. I'll take your question. Well, we concluded repositioning in this last quarter because we had reached the execution and pricing level that would attract the volumes we expect. So what does that mean for 2026? Let me try and explain. In Q1, obviously, you know that there will be a price reduction compared to the first Q25 because we started repositioning in Q2 25. So the comparison basis with Q1 last year is not a great comparison basis. And we said that before because we were clearly outside the right pricing level according to market levels. Now, to be specific in terms of what we expect to show in Q1 26, there will be a price reduction compared to the amount we were operating with in Q1 25. that will be just over 10%. So obviously that will depend on the execution. We are contracted and that's another point. We are contracted for the whole of Q1 and practically Q2, but in our execution, there is a mix of regions, mix of clients, mix of products that may affect the end price level. the pricing level that you will see when we publish our, when we post our results for Q1 will be roughly a 10% reduction compared to Q1-25. Now, moving on to Q2, and consistent with what I said, that we started repositioning in Q2, then things, prices should become more stable, which goes to my point, that's when we'll conclude the pricing repositioning process. So all the price changes that we did in 25 were enough to balance our competitive positioning. So I'm not expecting any great pricing variation in terms of Q2 last year. And we have also been able to contract for Q1 that are very healthy. Obviously, there was some carryover to the beginning of 26 at the end of year, but it was the risk of contracting the discussion with our clients in a very healthy environment. And it was all very natural. Also, looking at Q2, Lucas, obviously, the second half of the year, actually. As you know, those dynamics will depend on the corn dynamics. Corn tends to be a more uncertain crop, so obviously that means a bit less contracting from clients. So for the second half of the year, we still have relevant volumes to be sold, but we are at a comfortable level for the second half of the year. And in terms of pricing, they are balanced with our prices in 2025. Once again, reiterating, and that's why I made that statement. I consider the repricing to be concluded not only because we had reached the right price, but because contracts are coming at the pace that we believe is consistent with what we expect in order to execute on our plans so the first half of the year is solid we've made good contracts on track with the on track with the prices that we had planned and at price levels that we believe to be suitable for the second half everything we've already sold has been sold for the right prices in line with what we executed on in 2025, and the continuation of the sales process will depend on time, the sale dynamics, what happens in the market, and our projections and our competitive positioning in the logistics market.

Great.

Thank you, Pedro. Thanks, everyone. Have a good afternoon. The next question is from Mr. Andre Pereira from Bradesco BDI. Please go ahead. Hi, good afternoon, Pedro, Guilherme, Saraiva. Thank you for providing us with more color on that second question.

In terms of CAPEX, could you tell us what the CAPEX for 2026 might be?

and how it will be distributed across your main projects. And what are your expectations for the second phase of the Mato Grosso expansion? Hi, Andrei. Thanks for the question. This is Guilherme. For 2026, we'll continue with our investment portfolio at the level we had planned. Obviously the company has been watching market movements in terms of cash generation and cash consumption. We did make an adjustment and it means that the CapEx level we will be executing in 2026 will be less than the 2025 CapEx, but higher than the 2024 CapEx. there will be between those two.

And obviously, we'll continue executing on the company's main project.

As we had been saying to you, this will be an important year for us. We'll conclude the Mato Grosso Rail Phase 1. We're going to conclude the main milestones on the tracks and the terminal. We'll also continue with our investment programs in maintenance, which is roughly 2 billion BRL. We're also investing in rolling stock to meet the volume increases that will take place in our operation. We also have some investments in our operation as a whole, which includes the construction work schedule and the Paulista Network investing in FIPS around the Port of Santos. These are all very important to continue to increase productivity in our operation. As I said, our CAPEX this year will be less than last year's but we won't lose traction in our project.

Let me just say that at that CAPEX level I'm sharing with you now will include the conclusion of the first phase

of Mato Grosso. We haven't planned anything for phase two of the Mato Grosso rail yet. That's under discussion. The company is looking into it, but we don't foresee any investments in the second phase yet because we're still assessing the project. But we are keeping to our schedule. We do have flexibility in that contract, and we are complying with all the metrics in the project. That was very clear. Thanks again. The next question is from Mr. Guilherme Mendez from JP Morgan. Please go ahead, Mr. Mendez.

Hi, everyone.

Good afternoon. Pedro, Guilherme, Sariva. The first question about the contract space in the first half of the year is very clear. Now, in order to understand things in the context of the conflict in the Middle East, we know that that's an important region for the demand of Brazilian corn and fertilizer imports. Now, this conflict started a few days ago. Have you noticed any change? in the pace of contracts for the second half of the year? And maybe looking at the future, how much do you think this conflict might impact on the volume to be contracted for the second half of the year? Thank you. Thanks for the question, Guilherme. This is Pedro. Let me answer your question.

First of all, the Middle East in terms

operational continuity and supplies is not relevant. So it doesn't mean any relevant risk to our rail. So I just wanted to reiterate that we're not concerned about that. As you put very well, Iran's relevance more specifically in the Middle East, The Brazilian agricultural market finds it relevant in terms of corn export as a destination for the second half of the year. It is relevant. Iran is for the Brazilian corn. It does vary from year to year. Last year, they bought a lot, 9.5 million tons. The year before, it was 5 million tons. Corn has a very capitalized, very fragmented market by nature, which is different to soybean. China is the main client of the Brazilian agricultural soybean. Corn is more capitalized, but Iran is a relevant destination for corn exports. But again, it's a relevant player for exports in the second half of the year. So to be very transparent, My crystal ball is as good as yours, so we're going to have to monitor things to understand how long this conflict will last, what kind of an impact it will have. Looking at current data, historical data, I wouldn't say that it won't cause any relevant problems to Brazilian agriculture, but we'll have to monitor the situation.

Obviously, ourselves and the whole market will be monitoring it.

As you said, Middle East also supplies some fertilizers to Brazil. And those global logistics networks, they end up changing when those impacts happen. The resilience in global commodities is considerable. You can have an impact on the cost of commodities, on prices, but markets that need that product will find a way to meet their needs.

So to us, we believe the company's figures

will materialize, but obviously it is a relevant conflict and we'll continue to monitor it. But right now, we don't believe it's going to be a major problem. We're not terribly concerned about what's happening there and its impact on the company. Thank you, Pedro. The next question is from Mr. Gabriel Rezende from Itaú BBA. Please go ahead. Hi, Pedro. I have a follow-up question about geopolitics, but it's more about fuels. It's clear that Petrobras' pricing practices parity are quite detached now. If there is a price adjustment on internal fuels, what do you think is going to happen? If fuel prices... Do you think there will be more pressure on the margin considering the companies contracted for Q1? But will you consider more take or pays for the second half of the year? How do you see that dynamic? Do you think it could be net positive for the company? And will it help offset the effect you just mentioned on fertilizers and corn exports? Hi, Gabriel. Good afternoon. This is Felipe. Thank you for your question. The impact on Rumo will be mainly diesel. That's the first point we should clarify. We need to look. Price fluctuations in oil tend to affect diesel prices. So how does pricing dynamics work for Rumo? All volume margins that we have with our clients, both to transport general cargo or grain transportation have a protection mechanism. So we can pass on any fluctuations in the price of fuel. So for the whole volume that's been contracted, we're not exposed. We have a natural hedging mechanism that protects the company's margin in terms of passing on the price. Obviously, that will depend on market conditions. fuels become more expensive, then rail becomes more competitive because the energy efficiency is better than other corridors that depend on road transportation. If it's not clear, let me know, and I'll try and rephrase my explanation. But that's how we see the fuel dynamics. No, that was very clear. Thank you. The next question is from Mr. Rafael Simonetti from UBSVB. Please go ahead. Mr. Simonetti, your mic is now open. You may ask your question. Hi, Pedro. Thanks for taking my question. It's about working capital. Now, looking at 2025, there was a significant variation compared to 2025. Could you please comment on the main factors that explain that and also what we can expect for 2026? Thank you.

Hi, Rafael.

This is Guilherme.

Well, from quarter to quarter, there's always some phasing.

Sometimes they haven't materialized or they are materializing in terms of cash conversion. And there are many topics, but If I focus on one, it would be the activation of some extemporaneous tax credits that we had over the year. And the monetization dynamics wasn't exactly as it's passed on to the results. So suppliers, client dynamics are predictable. We know how they work. It's all very healthy. And there are some specific elements that took place that led to that mismatch, but nothing concerning or nothing that changes the dynamics of our working capital dynamics. That makes sense. Thank you. The next question is from Mr. Bruno Amorim from Goldman Sachs. Please go ahead, Mr. Amorim. Hi, good afternoon. Thank you for taking my questions. I have a follow-up question about the Mato Grosso extension, please. Over the year, how can the extension contribute with volume? Do you think it can make a relevant volume contribution over the year and for the next years? How are you going to ramp up the use of that capacity? In terms of Mato Grosso, if you're not going to invest in Mato Grosso Phase 2 and you're going to spend about $2 billion a year on the expansion, then there should be a $1 billion reduction in this year's capex compared to last year. I know that there are many moving parts, but your capex, responding to a capex that's closer to 6 than 5 billion. And if we take away 1 billion from last year's capex, it will be closer to 5. So if you can help us reconcile those points, maybe there's another project that's ramping up this year. That's it. Thank you. Hi, Bruno. Thanks for the question. For the first part of your question, yes. The beginning of operations of phase one will happen in Q3. Then we'll have the commissioning phase, the beginning of operations. We'll do it gradually, and we'll be very careful about it. We'll begin to move some volume at the BR70 terminal more consistently in Q4. And the main thing is that a company's current capacity would already be enough to move all that volume. that will transport in 2026, which will be more than 90 billion RTK in terms of where we want our operation to be.

So the terminal will make its contribution, however,

It won't bring any substantial additional capacity.

The portfolio we have right now would be enough for the volume. Now, as of 2027, yes, there will be more of an inflow to that terminal, and it will grow as the market grows. Let's not forget there are 10 million tons, and we want to fill up that capacity. and the volume of our operation should be at the same level as the market grows. Now, in terms of our investments, yes, we will continue to make major investments in the company to conclude Mato Grosso's phase one that will be roughly 1 billion BRL approximately. And as I said previously, we'll continue with our plan to make recurring investments in maintenance. That will be 2 billion DRL. And there is an increase in investment in rolling stock. That's considerable. Over the last few years, we have been increasing our asset pool, but in structures that weren't necessarily the direct use of company funds. We did establish partnerships with clients. We will now resume investments in rolling stock using company capital. Now, also to pay for the Polista network program, we'll also need to increase investment. So it's not a straightforward math. In our investments mix, there are also increases in other investments in the portfolio that have placed us in that position between 24 and 25. The next question is from Mr. Rogerio Araujo from Bank of America. Please go ahead.

Hello.

Good afternoon. Thanks for taking my question. Still on your tariff repositioning dynamics, if I could ask a couple of follow-up questions. First, if you hadn't repositioned your prices, would those volumes have left through other corridors or would it have stayed in Mato Grosso? Second question, could you talk about rumors, rail gap compared to other transportation mode alternatives, other corridors, and also What kind of freight price floors can we consider? What would be a level that would make the company comfortable to believe that you've reached the right level? Thank you. Hi, Rogério, this is Saraiva. Thank you for your question. It's hard for the company to... try and work out in hindsight what would have happened. Oh, what would have happened if we had positioned it this way or that way? I can tell you what we did do, what we looked into, and what variables we took into account. We started 2025 with a company more expensive than other companies in Mato Grosso and around Mato Grosso. We were more expensive than other logistics solutions. So as we said, we repositioned it by roughly 10% as of Q2. Once we repositioned the prices, our market share level normalized, and that's the indicator that the company prices are now level with market levels. If prices were below, too far below the competition, then that market share might have been much bigger than it was. So the way we look at it and what we estimate from the competition and what we want in terms of market share for the company suggests that we are at an average competitive level in terms of origins in Mato Grosso. Now for 2026, looking at the first half of the year, it suggests that our price is competitive and they were good for the client that decided to use rail transportation. If there's any need to change tactics, the company is always open. We are consistently monitoring the market to position rail transportation competitively. That is the priority. We need to make sure that we are occupying our capacity efficiently and always fitting it with the market reality. If there are and the market will capture them like we did last year. If we need to reposition again, yeah, we'll keep an eye out for that. That's it. If you'd like any more explanations, we'll be here. That's very clear. Thank you, Saraiva. The next question is from Mr. Daniel Gasparetti from Itaú BBA. Please go ahead.

Daniel Gasparetti

Good afternoon. Thank you for taking my question. I have a follow-up question to Pedro's comment. I just want to double-check the number. Did you say 10, a little bit less than 10% for Q1? So I just want to double-check that. And then I'd like to talk about the West Network. How are discussions going? And the last one, if I may, is a bit more qualitative. How are you thinking in terms of commercial policies? Taravo's comments were very clear, and based on what Pedro said, last year the company had higher prices than other modes of transportation. So how are you thinking about your prices prospectively to protect yourselves from movements like that in the future? Or is it just the price sake that's the reality of life and you need to optimize what you can in terms of cost? Thank you.

Thank you for your questions, Daniel.

Now, I'm going to answer your question about the West Network.

Now, to be transparent,

We've been saying this to the market and we've been discussing it with the government and the natural way forward would be to return the asset to the granting authority. That is a concession that we have been aware that hasn't been operating at the right level. We reconditioned the last operation we had in the West Network. Right now that operation has basically been interrupted. There are no volumes being transported. The last contract has terminated with the last remaining client. We're not allocating any funds to the operation, so the next natural step will be to continue to talk to the government to formally return the asset. And we are doing our best to move diligently in that process. There are no news, nothing new to share with you, and this should happen this year. And the contract will end halfway through the year. So we're not allocating any funds to that network. We won't be allocating any funds as of the second half because the operation has been So we'll now just formally return the asset to the granting authority. This is Pedro now. Andre, I'll take your question about the commercial policies.

Just to clarify my comment, just over 10% price reduction

in Q1, 2026, compared to Q1, 2025. I'm talking about the North operation consolidated yield specifically, which is the most relevant piece of data in our balance sheet. So that's it. The RTK and North operation in Q1, 26, compared to Q125. In terms of our commercial policy, Daniel, to be very candid with you, I used the expression tactical readjustment, tactical positioning, because our strategy hasn't changed. We haven't changed our commercial policy. Our policy has always been and continues to be the most competitive logistics solution or competitive in markets where we choose to operate to ensure that we can use our capacity efficiently and intelligently. That allows us to be the player with the lowest cost to serve with the best capacity and the most resilience in the system connecting Brazil's main which is the port of Santa. So we'll maximize value creation and that structure is key. What we did in 2025 and when we say that in Q1 our price was wrong, that was actually, just to go back a bit, we came from a crop failure in 2024. So the information about the right price for 2035 that we knew was going to be a year where there would be good product supply for exports, but it was uncertain. Nobody knew. The market didn't know. We didn't know exactly what the pricing level would be for logistics in Mato Grosso and what level it would become stable in 2025. So Q1, was necessary to find out what the new logistics price would be. As we found out what this new pricing level would be, we made the adjustments. There were complexities, but we have been doing it throughout the year. In 2025, we had very healthy volumes. because the only adjustment we made were to the prices. Now, the level of uncertainty is much less than it was in Q125. Obviously, things can change. I always reiterate, we can never forget that we work with agricultural commodities. They're part of our business. That's why we like to keep a high liquidity position and focus on execution discipline and being very strict when we use company funds. That's why we need to have an agenda to optimize our costs, looking at unit costs to make sure that We have healthy margin levels regardless of what can happen in the commodities environment, which is where we operate. So we can't give you a guarantee of an absolute price level or absolute crop level. What we can guarantee is that our company is increasingly more solid, disciplined, and strict when it comes to everyday expenses so that Regardless of what happens, we will be the benchmark player and we will be able to navigate whatever happens. Thank you.

Have a great afternoon.

The Q&A session is now concluded. We would like to hand the floor back to Mr. Guilherme Machado for his closing remarks. I'd like to conclude the call by thank you all for joining us. And to reiterate, we're very confident about 2026 as you saw in our opening remarks. We had a very solid execution in January and February in terms of volume. We'll begin the year practically with the first half of the year fully contracted. focusing on operating those volumes and we know that the operations back when there's pressure on our system. We do best when we have demand and that's when we can optimize our system. We also mentioned that at the end of Q1, we'll have more visibility in terms of prices are going as Pedro reiterated more than once. we should have a little bit less than 10% reduction and as of the next quarters, pricing levels will be more compatible with the repositioning that we started in 2025. It's reasonable to believe that we'll have more stable prices over the year. We'll monitor market dynamics. There should be a lot of information available at the beginning of the year and for volumes that haven't been contracted, We will continue to follow our strategy and look out for any opportunities. We aim to increase transported volumes within our system capacity over 90 billion RTK. We'll continue to comply with our investment portfolio and company contracts and concluding phase one of the Mato Grosso Rail. We are absolutely confident that we will be delivering that project in Q3 2026. We have been working on liability management and liquidity in 2025 and that has made us feel sure that we are liquid and our leverage level is consistent with our business profile. and our ability to navigate any volatilities this year, maybe due to election or anything else that might happen. That's it. The company is ready to operate efficiently, cost efficiency, whether they be fixed or variable and executing on our investment portfolio. Thank you once again for joining and I'll see you again during the call for Q1 2026 or some other time. Thank you. This concludes Rumo's earnings release video conference. Thank you for joining us and have a great day.