AZEV3: quote, dividends and indicators for Azevedo & Travassos

Azevedo & Travassos S.A. is a publicly traded holding company with shares listed on B3 under the tickers AZEV3 and AZEV4. Founded on June 25, 1922 by engineers Francisco Azevedo and Francisco de Palma Travassos, it began as a provider of engineering and construction services and has participated in landmark infrastructure projects over a century of operations. The company has built a relevant technical track record in transportation and urban mobility projects, with a presence in road, rail and subway works, as well as dams, airports, bridges, overpasses and tunnels. In sanitation, it has consolidated experience in building reservoirs, water mains, water distribution and sewage collection networks, and pumping and treatment stations. In 1984, it became the first engineering company to go public on the Brazilian stock exchange, which enabled investments in the oil and gas value chain. In December 2019, Rocket Capital took control of the group, ushering in a phase of corporate restructuring, capital strengthening and strategic repositioning.

The current structure of Azevedo & Travassos is organized as an operating holding company that works, through subsidiaries, in the infrastructure and oil and gas segments. The main subsidiaries are Azevedo & Travassos Infraestrutura Ltda. (ATInfra), Heftos Óleo e Gás Construções S.A. and Azevedo & Travassos Investimentos S.A. The business model is divided into two strategic verticals: infrastructure investments, focused on the management of concession assets, and specialized engineering services, concentrating on more complex civil works and industrial assemblies. This segmentation aims to provide greater clarity for capital allocation, performance measurement of each front, and the generation of recurring revenues from concessions, alongside revenues from engineering contracts. The corporate and operational reorganization, completed in February 2025, included the spin-off of Azevedo & Travassos Energia S.A., the transformation of Congem Investimentos into Azevedo & Travassos Investimentos S.A., and the redesign of the role of the operating subsidiaries within the group.

In the specialized engineering vertical, Azevedo & Travassos Infraestrutura remains the main operator of heavy and linear engineering projects, with technical capacity to execute works on highways, railways, airports, bridges, viaducts, tunnels and dams. The company is also active in sanitation and in the construction of gas pipelines, oil pipelines and mineral pipelines in steel and polyethylene, as well as electromechanical and industrial assemblies. Heftos Óleo e Gás Construções, acquired in 2021, is dedicated to services for the oil and gas, energy and petrochemical industries, with a portfolio that includes construction and assembly, hook-up and integration, asset management, maintenance, assembly and scheduled shutdowns of industrial plants. Heftos has decades of experience on Brazilian offshore platforms and onshore refineries, supported by a logistics base in Macaé (RJ) with an area of 92,000 m². In parallel, the group maintains expertise in oil exploration and production, with the refounding in 2023 of the subsidiary Azevedo & Travassos Petróleo, focused on inorganic consolidation of micro and small onshore oil and gas producers.

In the investments vertical, Azevedo & Travassos Investimentos operates as a holding company for real infrastructure assets in urban environments, running specialized platforms in sanitation and highway concessions. In sanitation, the Aviva Ambiental platform develops and operates private water and sewage service concessions in Brazilian municipalities, focusing on small and mid-sized cities. Aviva is responsible for concessions in Mirassol (SP), Jacundá (PA), Buriti Alegre (GO) and 27 municipalities in Alagoas, with contracted investment volumes exceeding R$ 1 billion, tied to the goal of universalizing sewage services by 2033 in its areas of operation. In the highway segment, the Rota Verde concession stands out, covering sections of highways BR-060 and BR-452 in Goiás, with a 30-year term and expected investments estimated at R$ 4 billion over 426 km. The contract provides for duplications, additional lanes, frontage roads and access and safety improvements, with the total value of the concession estimated at R$ 10 billion over the period. These projects help create a more predictable cash flow within the group and diversify sector exposure.

Azevedo & Travassos’ revenue is generated entirely in the Brazilian market, with no construction or service operations abroad. In 2022, the company posted revenue of R$ 445 million and a backlog close to R$ 1.26 billion; in 2023, gross revenue reached R$ 474.9 million. At the end of 2025, the combined backlog of Azevedo & Travassos Infraestrutura and Heftos reached about R$ 3.5 billion, a significant increase over the previous year, with a predominance of contracts in the oil and gas sector. The 2025 opportunity pipeline totaled approximately R$ 35.3 billion in projects under prospecting, budgeting or negotiation, reflecting a robust demand environment in the segments in which the group operates. The company reported recurring net losses in several recent fiscal years, with a negative result of R$ 620.3 million in 2025, materially affected by non-recurring effects related to the impairment and divestment of an investee. Excluding these impacts, management indicated that adjusted results would have been positive, illustrating the difference between operating performance and extraordinary accounting effects.

Azevedo & Travassos’ client base is composed mainly of large companies and entities connected to the oil and gas, energy, sanitation and infrastructure sectors. In 2024, Equinor and Petrobras were among the main customers, with significant shares of net revenue, alongside Comgás and Sabesp. Revenues associated with these clients come from both highway works and services on offshore oil and gas production platforms, as well as sanitation projects. Typical seasonality in the heavy construction sector results in lower activity between December and February, a period often affected by rain and holidays, which can influence the pace of project execution and revenue recognition. Operations require engineering-intensive inputs such as concrete, steel, asphalt, pipes, valves and heavy earthmoving and lifting equipment, in addition to support vessels in offshore activities.

Azevedo & Travassos’ activities are subject to a complex regulatory framework involving federal, state and municipal agencies. As an engineering company, it is supervised by the CONFEA/CREA system, which requires the issuance of Technical Responsibility Notations (ARTs) for works and services. Occupational health and safety conditions at construction sites and industrial facilities follow Ministry of Labor regulations, particularly the Normas Regulamentadoras (NRs) related to personal protective equipment, medical control, environmental risk prevention and civil construction conditions. In highway projects, policies from the Ministry of Transport and rules from the National Land Transport Agency (ANTT) guide the regulation and oversight of federal concessions. In infrastructure and sanitation activities, the company depends on environmental licenses issued by IBAMA and state agencies, including preliminary, installation and operating licenses. Sanitation concessions operated by its subsidiaries are regulated by state and municipal agencies such as AGR in Goiás, ARSAL in Alagoas and local regulators in Mirassol and Jacundá, which set quality standards, investment targets and tariffs.

In corporate governance and ESG practices, Azevedo & Travassos highlights the adoption of formal processes for reorganization, strengthening of capital structure and portfolio review, but had not, through fiscal year 2025, published an annual sustainability or integrated report. The group owns the “Azevedo & Travassos” trademark, registered with the National Institute of Industrial Property, and emphasizes operational safety, regulatory compliance and technical risk management in its engineering projects and concessions. The combination of heavy infrastructure, oil and gas, and sanitation and highway concessions, together with its long history in the Brazilian engineering sector, defines the current profile of the company listed on B3, which seeks to integrate operating assets, specialized service contracts and long-term investments in regulated assets.