POMO4 Marcopolo

Marcopolo S.A. is a long-established manufacturer of bus bodies operating in the passenger transportation industry. Founded on August 6, 1949, in Caxias do Sul (RS) under the name NICOLA & CIA. LTDA., the company went through several corporate and name changes until adopting its current name in 1992. Over the decades, it incorporated companies in the same line of business, such as Eliziário S.A. – Carrocerias e Ônibus, and set up a specific holding company, Companhia Marcopolo de Participações, through a partial spin-off in 1991. Marcopolo’s shares, traded on B3 under the tickers POMO3 and POMO4, are registered, book-entry shares with no par value, and the company joined Bovespa’s Level 2 Corporate Governance segment in 2002, as well as the Market Arbitration Chamber’s rules.

Historically, Marcopolo has expanded its scope of operations through acquisitions, joint ventures and international expansion. In the 1990s and 2000s, it established a presence in Argentina (Marcopolo Latinoamerica), Mexico (Polomex), South Africa (Marcopolo South Africa), Colombia (Superpolo) and other markets. It also created support structures for its core business, such as Marcopolo Trading S.A., focused on foreign trade operations, and Banco Moneo S.A., specialized in financing sales of the company’s own products and those of its subsidiaries. In parallel, it implemented corporate education programs, such as CEMEC in partnership with Fundação Getúlio Vargas, aimed at training executives and successors for strategic positions.

Marcopolo’s business model is split into two major fronts: the industrial segment, which accounts for around 98% of net revenue, and the financial segment, represented mainly by Banco Moneo’s operations, with about 2% of revenue. The industrial segment focuses on the manufacture of bus bodies and spare parts, including highway coaches, city buses and minibuses, in addition to developing components such as seats and structural parts. The financial segment focuses on credit operations aimed at financing vehicles produced by the group, complementing the offering for customers and transport operators.

In industrial operations, Marcopolo’s production process is organized into two major stages: parts manufacturing and assembly on the production line over chassis, generally supplied by the customers themselves. Raw materials are cut, formed and welded to create subassemblies, which then make up the body structure in galvanized steel sheets and tubes. After assembly of the basic structure – base, sides, roof, front and rear – the vehicle goes through anti-corrosion treatment, paneling, painting according to each customer’s specifications and, finally, trim assembly, testing and release by quality control. This process is also replicated in the Volare line, dedicated to minibuses, in which the company purchases the chassis and produces the body. The machines used are conventional, with jigs and assembly fixtures developed in-house, reflecting proprietary know-how.

Marcopolo’s products are sold throughout Brazil via a network of sales representatives and branches, with billing mainly direct to the end customer. Although it operates in all states, its main domestic markets are Rio Grande do Sul, São Paulo, Paraná, Espírito Santo, Minas Gerais and Rio de Janeiro. Abroad, the company directs its products mainly to South America, Africa and Central America, using local representatives to sell bodies and spare parts. The Volare minibus, in particular, has an exclusive distributor network and serves a customer profile often made up of individuals, which sets its commercial dynamics apart from those of other bus models.

In market terms, Marcopolo operates in a globally fragmented bus body industry, made up of many smaller manufacturers. Brazil stands out as one of the world’s largest producers of highway coaches, city buses and minibuses, driven by its large population and the predominance of road transportation. In this context, the company maintains a leading position in the Brazilian market, with a total share of 48.4% in 2024, considering highway, city and micro buses. In minibuses, a segment in which the Volare model is included for calculation purposes, market share reached 64.2% in 2024, while in highway coaches it was 52.3% and in city buses 29.4%, according to data from FABUS and the company itself.

Marcopolo’s geographic footprint is broadly diversified. In Brazil, net revenue accounted for approximately 74% of the total in 2024, while international markets represented the remaining 26%. Among the countries with material revenue contribution are Australia, with about 10.7% of net revenue, and Mexico, with approximately 8.3%, in addition to Argentina, Africa and China. The company operates through industrial subsidiaries abroad, such as Marcopolo South Africa, Metalsur in Argentina, Volgren in Australia, MAC in China and Polomex in Mexico, as well as affiliates like Superpolo in Colombia. Marcopolo also holds an 8.1% stake in NFI Group Inc., a major manufacturer of urban and highway buses in the United States and Canada, with industrial operations in Europe and assembly in Asia and Oceania.

Marcopolo’s core activity – manufacturing bus and minibus bodies – is highly regulated in Brazil. The company is subject to resolutions issued by the National Traffic Council (CONTRAN), based on the Brazilian Traffic Code, which set out vehicle safety requirements, technical specifications, vehicle configurations and conditions for registration, licensing and circulation. In addition to traffic rules, the company must comply with environmental legislation relating to pollutant and noise emissions, requiring the License for Use of Vehicle or Engine Configuration (LCVM) from Ibama in order to market vehicles. Marcopolo also maintains state environmental operating licenses, federal technical registration with Ibama, a Federal Police operating license and an Army registration certificate, due to the use of controlled and potentially hazardous chemicals in its production process.

In the environmental, social and governance (ESG) field, Marcopolo highlights the maintenance of relevant certifications such as ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Health and Safety), demonstrating an integrated management system for these matters. The company formalizes commitments in its Business Management Policy, such as providing mobility solutions in a sustainable way, protecting the environment by minimizing impacts and preventing pollution, ensuring safe and healthy working conditions, and encouraging employee participation in eliminating hazards and reducing risks. The company also states that it follows ethical standards aligned with its values and code of conduct, and that it does not make financial contributions to political parties, candidates or activities designed to influence public policy decisions. For investors who follow POMO3 and POMO4 shares on B3, these elements help contextualize Marcopolo’s operating and regulatory profile, as well as its positioning in the passenger transportation sector.