PDTC3 Padtec Holding

Padtec Holding S.A. is a Brazilian publicly traded company, with common shares listed on B3 under the ticker PDTC3. The company originated in 1998, initially incorporated as Kikwitt Participações S.A., later adopting the name Ideiasnet S.A., operating as an incubator for internet projects. In 2000, it went public on the then Bovespa, with its shares trading under the code IDNT3. The corporate trajectory took a major step in 2020, when shareholders approved the merger of Padtec S.A. shares into the then Ideiasnet, a transaction that turned the optical equipment manufacturer into a wholly owned subsidiary. In July of the same year, the company changed its name to Padtec Holding S.A. and the trading code was altered to PDTC3, aligning the group’s identity with that of its main operating asset.

Padtec Holding operates as a pure holding company, with no direct operating activities, and Padtec S.A. as its main and, in the most recent period, only relevant operating subsidiary. Padtec S.A. emerged in 2001 from the spin-off of the optical communications laboratories of Fundação CPQD, with the objective of independently developing technologies for the telecommunications sector. Since then, it has consolidated a focus on optical systems based on DWDM (Dense Wavelength Division Multiplexing) technology, which significantly increase data transmission capacity in fiber-optic networks. Over the past two decades, the company has evolved from initial products of 2.5 Gb/s to devices reaching rates of up to 800 Gb/s, reflecting the need to keep pace with the exponential growth of data traffic on fixed and mobile networks.

The business model consolidated under Padtec Holding is organized into two major business units within Padtec S.A.: DWDM Optical Equipment/Systems and Services, Software and Platforms. The DWDM Optical Equipment/Systems unit concentrates on the development, manufacturing and supply of transponders, optical amplifiers, modules and complete end-to-end systems used in terrestrial backbones, access networks, metro/aggregation networks and Data Center Interconnect (DCI) and SAN scenarios. This unit also includes solutions for long-distance networks, with amplifiers and route protection features such as optical switches and proprietary control planes, aiming for high traffic availability. The Services, Software and Platforms unit brings together specialized multivendor services in optical networks, operation and maintenance contracts, strategic outsourcing, remote monitoring via a 24x7 NOC, network management software, automation platforms and complementary solutions in cybersecurity and field team management.

From an economic standpoint, Padtec Holding S.A.’s consolidated revenue predominantly reflects the sale of DWDM equipment in Brazil and abroad, supplemented by the offering of services, software and platforms. In 2024, the largest share of net revenue came from the Equipment business in Brazil, with a relevant contribution also from the foreign market and from the Services, Software and Platforms unit. The company maintains a diversified base of corporate B2B clients, serving traditional telecommunications operators, carriers of carriers, utilities, integrators, data centers and, notably, regional internet service providers (ISPs). In 2024, Telecomunicações Brasileiras S.A. – Telebrás accounted for 14.1% of total net revenue, with contributions from both business units, highlighting the importance of large public and private operators in the demand for high-capacity optical infrastructure.

Padtec S.A.’s geographic presence, consolidated under Padtec Holding, covers the Brazilian market and several Latin American countries. International expansion began in 2004, initially focused on Argentina and later Colombia, and currently reaches 16 countries that together represent most of the region’s GDP. In 2024 and 2025, the group intensified its international strategy through commercial partnerships in Peru and Colombia, including the launch of a Premium Services unit in Colombia, and with the opening of a subsidiary in Mexico. In the 2024 fiscal year, 75.5% of Padtec Holding S.A.’s net operating revenue was attributed to clients domiciled in Brazil, while 24.5% originated from foreign markets, demonstrating the growing relevance of operations outside the country. The company also announced its return to the submarine systems market, through a partnership with the Peruvian company Satelital to offer turnkey solutions for submarine and sub-fluvial networks in Latin America.

Padtec S.A. operates in an environment of strong demand for connectivity, driven by the expansion of fixed broadband via fiber optics, the adoption of higher speeds by Brazilian households, the growth of data centers and the rollout of 5G. The DWDM technology supplied by the company makes it possible to multiply the capacity of existing fiber networks by transmitting multiple signals at different wavelengths over the same fiber, which reduces cost per bit and postpones the need for physical cable expansion. The main consumers of this technology include large telecommunications companies, regional providers and data center operators. Competition includes global manufacturers of optical systems present in the Caribbean and Latin America (CALA) region, against whom Padtec leverages advantages such as local manufacturing, benefits from the Informatics Law, close pre- and post-sales support and in-depth knowledge of the regional market.

On the technological front, Padtec S.A. invests a significant share of its net revenue in research and development, which supports a constantly updated portfolio. Recent innovations include the LightPad Max platform, a new generation of coherent transponders for DWDM networks focused on lower cost per bit and greater energy efficiency; the AC version of the M2400G transponder designed for data center environments; and a line of low-power 400 Gb/s coherent pluggable transceivers compatible with transponders and IP routers from different vendors. The company has also been strengthening IP and DWDM integration through partnerships with international switch and router manufacturers such as UfiSpace, IP Infusion and Arrcus, and data center solutions developed jointly with Trusted Data, integrating platforms such as Smart Edge and Smart Site. In software, it has evolved its NMS+ network management system into an ASON Control Plane based on SDN architecture, focusing on automation and smarter, more scalable optical networks.

From a regulatory perspective, Padtec Holding S.A., as a holding company, does not have activities directly subject to specific sectoral regulation, but its subsidiaries, especially Padtec S.A., operate in an environment regulated by different agencies. The equipment manufacturer must be registered with CREA, have its products approved by Anatel for operation in Brazil and obtain certifications such as FCC and CE to operate in foreign markets. The industrial activity of manufacturing telecommunications equipment is classified as potentially polluting, requiring environmental licensing in multiple phases (preliminary, installation and operating licenses), as well as registration in Ibama’s Federal Technical Registry and compliance with environmental conditions. The company maintains municipal operating permits, fire safety certificates and procedures for proper treatment and disposal of waste, including documentation of the movement of environmentally relevant waste. These elements, together with intellectual property management for trademarks such as “PADTEC”, “LIGHTPAD” and “MULTIPAD” and a portfolio of optical technology patents, make up the institutional foundation that underpins the operations reflected in the financial statements and in the PDTC3 shares traded on B3.