Grupo Traxión, S.A.B. de C.V. (GRPOF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

third quarter 2025 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Abbe Litsein, Executive President. Thank you. You may begin. Abbe Litsein, Executive President, Thank you. Good morning, everyone. Thanks for joining us again for this quarterly earnings call. Let me start with the good news. As you know, we executed the integration of Solistica early in the quarter and it has concluded successfully. It is the most relevant merger in the logistics industry in Mexico and a very strategic move on our side as it is transformational for Traxion. There are many synergies that we have captured so far. Among the most relevant are the transfer of the shared services center, together with all the logistics back office, to the Traxion platform. And I've executed several procurement efficiencies that have improved the bottom line. Traxion invested around 1.6 billion pesos in the acquisition and prepared the company to properly cope with the integration, which is expected to bring at least 8 billion pesos of additional revenue. Because of that, management decided to slow down organic growth to focus more on the successful merger of both operations. Most notably, Traxion significantly reduced its organic capex for 2025 to accommodate the acquisition of Solistica, which basically implies the same investment levels as in previous years, but with Solistica up and running in our platform. After the acquisition, the company remained with virtually the same level of leverage and interest expens...