AZEV4 Azevedo & Travassos

Azevedo & Travassos S.A. is a Brazilian engineering and infrastructure company founded on June 25, 1922, by engineers Francisco Azevedo and Francisco de Palma Travassos. Over more than a century of operations, it has built a track record in road, rail, subway, airport, tunnel, bridge, dam, sanitation and industrial unit infrastructure projects, playing a relevant role in the development of major engineering projects in the country. In 1984, it became one of the pioneers in the construction sector by going public, with its common and preferred shares traded under the tickers AZEV3 and AZEV4, listed on B3. From the 1980s onward, it expanded into the oil and gas segment, diversifying revenue sources and technical capabilities, which gradually shaped the group’s current profile.

Azevedo & Travassos’ contemporary corporate structure is organized as a publicly held holding company, with operations carried out by specialized subsidiaries. The main controlled entities include Azevedo & Travassos Infraestrutura (ATInfra), Heftos Óleo & Gás Construções, MKS Soluções Integradas and Azevedo & Travassos Investimentos. These companies are grouped into two strategic verticals: infrastructure investments, focused on managing concession assets; and specialized engineering services, oriented toward executing complex civil works and industrial assembly. The recent corporate reorganization, completed in 2025, included the entry of asset manager REAG as controlling shareholder, the spin-off of energy-related assets and the restructuring of subsidiaries, with the goal of providing greater operational focus, capital discipline and clarity in measuring the performance of the different businesses.

In the specialized engineering vertical, Azevedo & Travassos Infraestrutura remains the main operator of heavy and linear engineering projects, with capacity to execute works on highways, railways, airports, bridges, viaducts, tunnels, dams and sanitation projects. The company also works in the construction of gas pipelines and oil pipelines, in addition to electromechanical and industrial assembly projects. Heftos Óleo & Gás, incorporated into the group in 2021, brings a history of more than four decades in the oil and gas market, providing construction and assembly services, hook-up and integration, asset management, maintenance and scheduled shutdowns on offshore platforms, refineries and onshore units. MKS Soluções Integradas complements this operation with maintenance, construction, electromechanical assembly, boiler-making and welding services for industrial units, serving clients in several states, with a significant contract portfolio and a workforce of thousands of employees.

In the infrastructure investment vertical, Azevedo & Travassos Investimentos concentrates the management of stakes in basic sanitation and highway concessions. In sanitation, the group operates through the Aviva Ambiental platform, dedicated to full concessions for water supply and sewage services in small and medium-sized municipalities. This platform is present in 31 Brazilian municipalities, across the states of São Paulo, Pará, Goiás and Alagoas, serving more than 500,000 inhabitants under long-term contracts, generally with minimum terms of around 30 years. The contracted investment plan exceeds R$ 1 billion, focused on achieving universal sewage service by 2033 in the areas served, in line with the new Sanitation Legal Framework (Law No. 14,026/2020). Sanitation operations employ hundreds of workers, mostly local labor, and involve strong interaction with state and municipal regulatory agencies.

In the highway concession segment, the Rota Verde Goiás consortium, led by Azevedo & Travassos Investimentos, won the auction for the concession of approximately 452.7 km of federal highways in the state of Goiás, covering sections of BR‑060 and BR‑452. The 30-year contract provides for investments estimated at more than R$ 6.8 billion, earmarked for duplications, implementation of additional lanes, frontage roads, walkways, rest areas and operational improvements, in addition to environmental and road safety programs. The total value of the concession is estimated at around R$ 10 billion over the contractual period. This asset consolidates the group’s entry into the highway management business, focusing on key logistics corridors for agribusiness, especially grain outflow in the Midwest region, adding a more predictable and capital-intensive source of revenue to the group’s project portfolio.

Azevedo & Travassos’ relationship with the oil and gas sector was reinforced by the refounding of the oil vertical, Azevedo & Travassos Petróleo, focused on acquiring small onshore producers, and by the acquisition of Heftos’ operating base in Macaé (RJ), with 92,000 m² and a broad set of technical certificates. In December 2023, subsidiary Azevedo & Travassos Infraestrutura signed a letter of intent, converted into a definitive contract in 2024, with Equinor for the Raia Project in the Campos Basin, involving onshore construction of about 5 km of onshore gas pipeline, a valve station and associated facilities under an EPCIC regime. The approximate value of R$ 500 million doubled the group’s backlog at the time and marked its entry into larger contracts with global operators. In 2024, clients such as Equinor, Petrobras, Comgás and Sabesp each accounted for relevant portions of net revenue, evidencing concentration in major customers from the oil and gas, piped gas and public sanitation sectors.

From an economic and financial standpoint, Azevedo & Travassos has been going through an operational recovery cycle since the late 2010s, with strong revenue growth but still with volatile results. Gross revenue, which was under R$ 3 million in 2019, reached R$ 27.9 million in 2020, R$ 86.3 million in 2021, R$ 165.1 million in 2022, and then R$ 445.1 million in 2022 and R$ 474.9 million in 2023, reflecting the resumption of works and consolidation of acquisitions. The backlog reached about R$ 745 million at the end of 2024 and rose to approximately R$ 2.3 billion in the first quarter of 2025, already including the Rota Verde concession, with a predominance of projects in the oil and gas, highways, sanitation, industrial and petrochemical segments. At the same time, the company posted negative net results in several fiscal years, evidencing a restructuring phase and high investment, with isolated years of profit significantly influenced by specific events.

Azevedo & Travassos’ operations are fully concentrated in the Brazilian market, with no revenue generated from works or services abroad through 2024. Operations are subject to a broad set of rules and regulatory requirements, including registration of Technical Responsibility Annotations in the CONFEA/CREA system, compliance with Ministry of Labor regulations related to health and safety in the construction industry, and obtaining environmental licenses issued by agencies such as IBAMA and state environmental departments. In concessions, sanitation activities are regulated by local agencies such as AGR, ARSAL, ARSAE of Mirassol and ARSAEJ of Jacundá, while highway concessions are supervised by ANTT. Regarding environmental, social and governance practices, up to the 2024 fiscal year the company did not publish annual sustainability or integrated reports, but states its intention to develop internal structures for monitoring indicators and future disclosure of information aligned with the topic. In this context, Azevedo & Travassos, through AZEV3 and AZEV4 shares traded on B3, positions itself as an engineering and infrastructure group with strong exposure to long-term contracts in sanitation, highways and oil and gas, combining public service concessions with heavy engineering and specialized industrial assembly projects.