PDTC3: quote, dividends and indicators for Padtec Holding

Padtec Holding S.A. is a Brazilian corporation that operates as a pure holding company, whose main asset is its equity stake in Padtec S.A., the entity that runs the group’s technology and telecommunications business. Incorporated in 1998 under the name Kikwitt Participações S.A., the company was later renamed Ideiasnet S.A. and, during that period, acted as an incubator for internet projects, accompanying the early stages of the digital economy’s expansion in the country. Its shares were listed on B3 S.A. – Brasil, Bolsa, Balcão in 2000, initially under the ticker IDNT3. In 2020, after the approval of the merger of Padtec S.A.’s shares, previously a significant investment of then Ideiasnet, Padtec S.A. was converted into a wholly owned subsidiary. Subsequently, in July 2020, the company changed its corporate name to Padtec Holding S.A., and its trading code on B3 became PDTC3, consolidating a corporate identity aligned with the optical networks and telecommunications solutions business.

Padtec Holding, as a holding company, does not carry out its own operating activities nor does it manufacture products or provide services directly, focusing instead on equity interests and on consolidating the results of its subsidiary Padtec S.A. The latter was created in 2001 from the spin-off of the optical communications laboratories of Fundação CPQD, with an initial focus on research, development and production of independent technology for the telecommunications sector. The group has built its track record as a supplier of solutions for high-capacity communication networks, covering everything from technology design to equipment manufacturing, software offerings, specialized services and platforms geared to the telecommunications ecosystem.

The group’s operating activities, carried out by Padtec S.A., are organized into three main business units: DWDM Optical Equipment / Systems, Submarine Systems, and Services, Software and Platforms. The DWDM Optical Equipment / Systems segment focuses on the development of end-to-end systems based on dense wavelength division multiplexing, a technology that significantly increases data transmission capacity over fiber optic networks by combining multiple signals at different wavelengths on a single fiber. Padtec S.A. designs, develops, installs and maintains these systems, including high-capacity transponders, long-distance optical amplifiers and route protection solutions, and also offers real-time monitoring of optical networks through OTDR partnerships and a portfolio of switches and routers. In the Services, Software and Platforms area, the group provides multivendor services for the deployment, operation and maintenance of optical networks, remote support through a 24x7 Network Operations Center (NOC), management platforms such as Padtec NMS+ and solutions based on software, automation and outsourcing, including initiatives in software-defined networking (SDN) and ASON control, aimed at the automation and intelligent management of networks.

The business model is predominantly B2B, focusing on solutions for terrestrial backbones, access networks, metro/aggregation networks, data center interconnection (DCI) and storage area network (SAN) environments. In the Brazilian market, the client base includes traditional telecommunications operators, regional internet service providers (ISPs), carriers of carriers, utilities, integrator companies and data centers with different profiles. In 2025, Telecomunicações Brasileiras S.A. – Telebrás accounted for 11.2% of the company’s total net revenue, with contributions from its two main business units. In addition to large operators, Padtec S.A. has built a significant presence among regional fiber broadband providers, a segment that gained importance with the expansion of connectivity in smaller cities and areas far from major urban centers, in a context of rapidly increasing penetration of high-speed fixed broadband in Brazil.

The group’s geographic footprint combines domestic and international operations. Padtec S.A. is present in 18 countries in the Caribbean and Latin America, reaching economies that represent a significant share of the region’s GDP. This expansion began in 2004, initially focusing on countries such as Argentina and later Colombia, and was strengthened by commercial alliances in markets such as Peru, Colombia, Mexico, the United States, the Caribbean and Central America. In the fiscal year ended December 31, 2025, 72.4% of Padtec Holding’s net operating revenue came from clients domiciled in Brazil, while 27.6% was generated abroad, indicating relevant geographic diversification of revenues. To support this strategy, the company has been using subsidiaries, local commercial partnerships and distribution channels for its entire portfolio, including premium service units in some Latin American markets.

From a regulatory standpoint, Padtec Holding’s activities, as a holding company, are not heavily affected by specific sector regulation. However, the operating investee Padtec S.A. is subject to a significant regulatory framework. The company must maintain a valid registration with the Regional Council of Engineering and Agronomy (CREA) for certain technical activities and has products certified by the National Telecommunications Agency (Anatel), a necessary condition for marketing telecommunications equipment in Brazil. The plant and other facilities require municipal operating permits, fire safety and panic certificates issued by state fire departments, as well as environmental licenses obtained from the relevant environmental agencies, in line with the National Environmental Policy. Abroad, Padtec S.A.’s subsidiaries and products are subject to local laws, including technical certifications such as FCC in the United States and CE in Europe, where applicable.

The environmental and social dimension of the operation is influenced by the classification of the manufacture of electrical and electronic materials and telecommunications equipment as a “potentially polluting” activity, which subjects Padtec S.A. to three-phase environmental licensing (preliminary, installation and operating licenses), as required by Brazilian law. The company is registered in IBAMA’s Federal Technical Registry, regularly submitting information and obtaining periodic compliance certificates. Waste management, especially for waste classified as environmentally relevant, follows specific technical standards, including treatment and final disposal by licensed companies, with documentation such as the Certificate of Movement of Environmentally Relevant Waste issued by state environmental agencies. In terms of water resources, the company operates in an industrial complex supplied by artesian wells, which are subject to the rules of the National Water Resources Policy and may involve granting requirements depending on water abstraction and effluent discharge, in accordance with the regulations applicable to the complex and the region.

From the standpoint of intangible assets and technology protection, Padtec Holding and its subsidiary maintain a portfolio of trademarks and patents related to the development of optical and telecommunications solutions. Trademarks such as “PADTEC”, “LIGHTPAD” and “MULTIPAD” are registered or in the process of registration with the National Institute of Industrial Property (INPI), ensuring exclusive use in Brazil for the registered classes, for renewable 10-year periods. The company also pursues patent applications and grants related to its innovations, which provide temporary protection for technological creations in exchange for disclosure of the technical content. This base of intellectual property is integrated into Padtec S.A.’s research and development investment strategy, which has historically allocated a significant portion of its annual net revenue to R&D, seeking to remain competitive in segments such as DWDM, IP networks, software platforms for network management, 5G solutions, Open RAN, submarine systems and new formats of pluggable optical modules and transceivers for use in metropolitan networks, data centers and edge computing environments.

In this context, Padtec Holding, through its common shares PDTC3 traded on B3, represents a corporate structure that captures the results and evolution of its subsidiary’s operations in the optical telecommunications infrastructure sector, in an environment of growing demand for fixed broadband, expansion of fiber optic networks, adoption of technologies such as 5G and the increasing need for high-capacity data transport networks in Latin America.