GGPS3

Grupo GPS is a Brazilian outsourcing services company that has been operating continuously since 1962, when it began its activities in Salvador (BA) with Predial Higienização, focused on cleaning and maintenance. Starting in the 1990s, under the leadership of Carlos Nascimento Pedreira, the company expanded its scope to private security and other complementary services, marking the beginning of a significant diversification process. In 2002, the entry of José Caetano Lacerda as a partner and, in 2003, of Luis Martinez as CEO ushered in a phase of organizational restructuring and strengthened management. The incorporation of Ecopolo Gestão de Águas e Efluentes in 2003 added capabilities in utilities and water treatment, consolidating the group’s vocation for offering integrated service solutions. Over the following decades, Grupo GPS structured a decentralized management model based on giving contract managers an entrepreneurial role, which enabled closer proximity to clients and rapid nationwide expansion.

The company has established itself as one of the main outsourcing service groups in the country, operating under the Grupo GPS brand and with common shares traded on B3 under the ticker GGPS3, in the Novo Mercado segment since April 2021. Its business model is entirely based on service provision, with no own industrial process, focusing on outsourcing non-core activities for companies across various sectors. Operating revenue comes mainly from facilities, security, maintenance and industrial services, indoor logistics and other related services. The Group’s strategy combines organic growth, by winning new contracts and expanding the portfolio offered to its existing base, with inorganic growth through successive acquisitions of regional and specialized companies. Among small companies acquired since the beginning of its trajectory and larger transactions, the group had integrated 53 different corporate groups by 2024, expanding its geographic presence, solution portfolio and client base.

Grupo GPS’s portfolio is organized into four major solution lines. Facilities is the main one, accounting for a relevant share of total net revenue in 2024, considering the services included in this group as already internally reorganized by the company. This segment encompasses cleaning and sanitization (including hospital and industrial), building maintenance, fire prevention and protection, reception, concierge and doorman services, administrative support, temporary labor, catering and food services, gardening, internal waste management and field marketing activities. In security, which represents a significant share of revenue, Grupo GPS offers property and personal security, armed escort, event security, operation of monitoring centers, integrated electronic security solutions and civil aviation protection (APAC). In maintenance and industrial services, another relevant revenue pillar, the company performs multidisciplinary services such as electromechanical maintenance, industrial automation, services in electrical substations, scaffolding and aerial platforms, electromechanical assembly, industrial shutdowns, highway and telephone network maintenance, as well as utilities engineering in industrial refrigeration, steam generation, fire-fighting systems, gases and compressed air, and water and effluent treatment.

The fourth line of business is indoor logistics, developed mainly through In-Haus Intralogística, created in 2006 in response to clients’ demand for services complementary to facilities and security. This arm concentrates logistics operations inside clients’ plants and facilities, based on detailed mapping of operational flows and allocation of labor and resources to internal processes. The broad range of solutions allows Grupo GPS to perform cross-selling among service lines, increasing the average ticket per client and raising the degree of operational integration in each contract. In 2024, the company served approximately 4,820 clients with more than 190,000 direct employees, spread across all Brazilian states, with no relevant revenue concentration in a single customer, as there is no client accounting for more than 10% of net revenue.

Grupo GPS’s addressable market is the outsourced services market in Brazil, including security, food services, engineering, logistics, facilities management, industrial maintenance, temporary labor and infrastructure services. Sector studies indicate a large and still fragmented market, with relatively low outsourcing penetration in the country compared to developed economies and some emerging markets. Labor legislation and the Outsourcing Law have expanded the legal possibilities for hiring external services for core activities, supporting the adoption of outsourcing models. Competition takes place in an environment with a strong presence of small and medium-sized regional companies; even as one of the largest groups in the sector, Grupo GPS still has a relatively low national market share, which underscores the fragmented nature of the segment and creates room for consolidation through acquisitions and scale gains. The company reports operations in all main outsourced service groups, without exceeding roughly a single-digit percentage share in each niche in states with greater economic weight, such as São Paulo, Rio de Janeiro and Minas Gerais.

Geographically, Grupo GPS has broad nationwide presence, with a strong concentration of revenue in the Southeast region, which accounted for just over half of 2024 net revenue. The North and Northeast, South and Center-West regions also have a significant share of revenue and gross profit, reflecting expansion through the opening of regional units in state capitals and strategic cities, as well as the integration of companies acquired in different regions. The company has no operations abroad and generates no revenue outside Brazil, focusing its activities on the domestic market. The management structure is organized by regional units, which serve as a basis for resource allocation, operational coordination and goal setting, connecting corporate strategy with local execution in contracts with clients from various economic sectors.

Grupo GPS’s activities are heavily regulated in some of its business lines, particularly private security and utilities and water and effluent treatment services. Property and personal security, armed escort and monitoring services are regulated by the Ministry of Justice through the Federal Police, subjecting the company to specific rules on training, refresher courses and registration of security guards, and control of weapons, ammunition and equipment. The company has developed internal systems, such as the Private Security Regulatory (RSP) system and the Segurametria software, to track legal requirements and operational performance, as well as to keep documentation required by regulators up to date. In utilities and water and effluent treatment, certain operations require environmental licensing at different levels, with the obtaining of preliminary, installation and operating licenses, and compliance with conditions established in federal, state and municipal regulations.

From an environmental, social and governance standpoint, Grupo GPS adopts structured practices for reporting and tracking indicators. The company publishes an annual Sustainability Report aligned with Global Reporting Initiative (GRI) standards, the WEF IBC Stakeholder Capitalism metrics and TCFD recommendations, and also references SASB standards and the principles of the UN Global Compact. The facilities operations incorporate initiatives aimed at reducing environmental impacts, such as the use of concentrated and biodegradable chemical products in cleaning services, with the objective of minimizing pollution of water sources, reducing water consumption and lowering the use of plastic packaging. On the social front, managing a large workforce, with hundreds of thousands of employees, involves training and qualification programs specific to each service line, including regulatory topics, occupational safety and operational service delivery. Corporate governance has been strengthened by the implementation of a Board of Directors, oversight committees and external auditing by large firms, in line with the requirements of B3’s Novo Mercado segment and the dispersed shareholding structure after the GGPS3 IPO.

Grupo GPS’s history shows a continuous growth cycle anchored in acquisitions and organic expansion of its contract base, with a strong emphasis on integrating acquired businesses and capturing administrative and operational synergies. Investments in technology, such as the GPSVista system for managing operational and maintenance routines, provide process standardization, real-time monitoring and performance indicators for facilities and utilities engineering contracts. This combination of national scale, diversified outsourcing services portfolio and corporate governance structure tailored to the capital markets positions Grupo GPS as a relevant player in the business services segment, with shares listed on B3 and revenue distributed across multiple business lines and regions of the country.