FRAS3: quote, dividends and indicators for Fras-le

Fras-le, currently organized under the global institutional brand Frasle Mobility (B3: FRAS3), is a company founded in 1954 and headquartered in Caxias do Sul, in the state of Rio Grande do Sul. Over the course of its history, it has consolidated itself as a “house of brands”, a structure in which several independent brands are managed under the same organization, focused on the mobility ecosystem. The company went public in the 1970s and, in 1996, became part of the Randoncorp economic group, which reinforced its position in the automotive and cargo transportation sectors. Since then, its trajectory has been marked by successive movements of organic expansion and acquisitions in Brazil and abroad, as well as by investments in engineering and friction material technology.

Fras-le’s business model is based on the development, manufacturing, commercialization, and import of automotive components, with a strong emphasis on friction materials for brake systems, but also with relevant operations in suspension, steering, engine, transmission, and powertrain components. The company structures its portfolio into different product families: friction materials, brake system components, steering and comfort components, and engine components. With the acquisition of Dacomsa in Mexico in 2025, it expanded its presence in engine and transmission components, incorporating brands such as Fritec, Moresa, TF Victor and others that reinforce the breadth of its under-car portfolio. Activities are supported by an advanced research, development, and innovation center in Caxias do Sul, Movetech, and by tests carried out at Centro Tecnológico Randon (CTR), which together form the group’s technological and engineering base.

Fras-le’s operations are segmented into two major revenue streams: the replacement (aftermarket) segment and the automakers (OEM) segment. The replacement business accounts for most of the company’s activity, focused on supplying friction materials, brake, steering, and comfort components, as well as engine and powertrain parts for vehicle maintenance. In 2025, this segment accounted for more than nine-tenths of consolidated net revenue, reflecting the company’s strategic focus on a diversified aftermarket platform, with multiple brands and a capillary presence among distributors, retailers, insurers, and regional customers. The automakers segment, in turn, concentrates the supply of friction materials and brake components directly to vehicle manufacturers or system suppliers, corresponding to a smaller but strategic share of revenue, as it strengthens approvals, technological reputation, and relationships with major global manufacturers.

From the perspective of markets and customers, Fras-le operates both in the supply of original equipment and in the independent replacement market, serving commercial and light vehicle manufacturers, national auto parts distributors, regional networks, and other specialized channels. In its relationships with automakers, the company develops joint research and friction material development projects, which has helped establish ties with globally relevant brands in the light and heavy segments. In the replacement market, the customer base is highly fragmented, with emphasis on major distributor groups in Brazil. In 2025, Grupo Comolatti, through Companhia Brasileira de Distribuição Automotiva S.A., accounted for just over 9% of net revenue, with no other individual customer exceeding 10% of revenue, which indicates commercial diversification and mitigates concentration risk in a few buyers.

Fras-le’s geographic presence is global, with industrial, commercial, and distribution operations spread across several continents. In addition to the parent company in Brazil, the company maintains subsidiaries and operating units in Argentina, the United States, Chile, Mexico, China, Germany, the Netherlands, Colombia, Uruguay, England, Northern Ireland, and India, among other locations. International expansion took place through acquisitions, joint ventures, and commercial offices, such as Fras-le North America, Fras-le Argentina, Fras-Le Andina in Chile, Fras-le Europe in Germany, Fras-le México, Fras-le China in Zhejiang province, and ASK Fras-le in India. In Mexico, Dacomsa strengthens its presence in the replacement market, while in the United Kingdom and Northern Ireland AML Juratek Limited operates distribution centers mainly focused on European markets, allowing the company to access more mature geographies. In Latin America, the consolidation of operations in Brazil, Argentina, Mexico, and other countries positions Fras-le as a relevant auto parts supplier for the region’s main markets.

Fras-le’s industrial and technological structure is centered on highly specialized processes in friction materials and metal components. In the case of brake linings and pads, the production cycle involves the development of proprietary friction formulations, raw material mixing, hot molding, heat treatment, and mechanical finishing, preserving industrial secrets that constitute an important part of the company’s know-how. Movetech, in Caxias do Sul, acts as an advanced engineering center with chemical, physical, and pilot laboratories, and coordinates performance tests together with the CTR, which has multiple test tracks. In 2025, the CTR performed thousands of tests, with hundreds of thousands of laboratory hours and tens of thousands of track hours, evidencing the intensity of investments in product validation and performance. This set of capabilities contributes to quality standards considered relevant by automakers and system suppliers in the supplier selection process.

In steering, suspension, and comfort components, Frasle Mobility’s operation in Extrema, associated with the Nakata brand, is focused on the replacement market and combines in-house manufacturing, especially of shock absorbers, with a co-manufacturing model. The unit develops the products technically, conducts tests in its own laboratories, and follows national and international standards, including Inmetro certification requirements for certain product lines. The portfolio includes shock absorbers, reaction rods, control arms, tie rods, driveshaft and differential components, wheel hubs, constant velocity joints, metal-rubber items, and motorcycle parts. The product development methodology is structured, based on the analysis of the active fleet, benchmarking of original parts, prototyping, durability, corrosion and strength tests, post-launch monitoring, and continuous improvement. This approach supports the expansion of the replacement catalog and helps maintain the brand’s relevance in the Brazilian market.

On the regulatory front, Fras-le’s activities in Brazil do not require specific authorizations beyond those commonly applicable to potentially polluting industrial operations. The company maintains the environmental licenses required for its facilities and is subject to the legal framework governing environmental liability in the administrative, civil, and criminal spheres. Brazilian legislation provides for sanctions in the event of environmental violations, as well as strict and joint liability for damage caused to the environment, which includes the possibility of holding both the legal entity and individuals linked to business decisions liable. In this context, environmental risk management and regulatory compliance are highly relevant in the conduct of industrial operations and in the contracting of third parties to provide services at its units. Fras-le shares, traded under ticker FRAS3 on B3, reflect this reality of a global industrial company, with technology-intensive businesses, a strong presence in the automotive replacement market, and operations in a regulatory environment that combines environmental requirements, technical standards, and corporate governance.