AZEV4

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 presence 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 to go 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 its revenue sources and technical capabilities, which gradually shaped the group’s current profile.

Azevedo & Travassos’ contemporary corporate structure is organized as a publicly traded holding company, with operating activities carried out by specialized subsidiaries. The main subsidiaries include Azevedo & Travassos Infraestrutura (ATInfra), Heftos Óleo & Gás Construções, MKS Soluções Integradas, and Azevedo & Travassos Investimentos. These companies are divided into two strategic verticals: infrastructure investments, focused on managing concession assets; and specialized engineering services, focused on 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 aim 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, overpasses, tunnels, dams, and sanitation projects. The company also works on the construction of gas pipelines and oil pipelines, as well as electromechanical and industrial assembly projects. Heftos Óleo & Gás, incorporated into the group in 2021, brings a track record of more than four decades in the oil and gas market, with construction and assembly, hook-up, asset management, maintenance, and scheduled shutdown services on offshore platforms, refineries, and onshore units. MKS Soluções Integradas complements this scope 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 interests 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 universalizing sewage services 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 stretches of BR‑060 and BR‑452. The 30-year contract provides for estimated investments of more than R$ 6.8 billion, allocated to duplications, construction of additional lanes, frontage roads, walkways, rest areas, and operational improvements, as well as 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 logistics corridors relevant to agribusiness, especially grain outflow in the Center-West region, adding a more predictable and capital-intensive revenue source to the group’s project portfolio.

Azevedo & Travassos’ relationship with the oil and gas sector has been reinforced by the reestablishment of its oil vertical, Azevedo & Travassos Petróleo, focused on acquiring small onshore producers, and by the acquisition of Heftos’ operational 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 around 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, underscoring the concentration in major contractors in the oil and gas, piped gas, and public sanitation sectors.

From an economic and financial standpoint, Azevedo & Travassos has been going through a cycle of operational rebuilding 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 reached R$ 445.1 million in 2022 and R$ 474.9 million in 2023, reflecting the resumption of projects and consolidation of acquisitions. The backlog reached around R$ 745 million at the end of 2024 and rose to approximately R$ 2.3 billion in the first quarter of 2025, already incorporating 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 recorded negative net results in several years, highlighting a phase of restructuring and heavy investment, with occasional profitable years significantly influenced by specific events.

Azevedo & Travassos’ operations are entirely concentrated in the Brazilian market, with no revenue from projects or services abroad up to 2024. Its activities are subject to a broad set of regulations and requirements, including registration of Technical Responsibility Annotations (ART) in the CONFEA/CREA system, compliance with Ministry of Labor rules related to health and safety in the construction industry, and obtaining environmental licenses issued by agencies such as IBAMA and state environmental departments. In the concessions field, sanitation activities are regulated by local agencies such as AGR, ARSAL, ARSAE of Mirassol, and ARSAEJ of Jacundá, while highway concessions are subject to oversight by ANTT. As for environmental, social, and governance practices, up to fiscal year 2024 the company did not publish annual sustainability or integrated reports, but it states its intention to develop internal structures for monitoring indicators and future publication of information aligned with this topic. In this context, Azevedo & Travassos, through its 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 projects and specialized industrial assembly.