ROMI3 ROMI

ROMI S.A. (ROMI3 shares), listed on B3’s Novo Mercado segment, is a Brazilian industrial company founded as the successor to Máquinas Agrícolas Romi Ltda., a mechanical workshop created in 1930. Formally incorporated in 1938, the company is headquartered in Santa Bárbara d’Oeste (SP), about 130 km from the state capital São Paulo, and over its trajectory has built a relevant international presence. In 1941, it began manufacturing machine tools with the launch of universal lathes, initially under the IMOR brand and later ROMI. As early as 1944 it started exporting its machines, which are now known in more than 60 countries and total around 160,000 units produced and sold, of which approximately 32,300 were destined for foreign markets. The company also played a historic role in Brazilian industrialization by manufacturing, between 1956 and 1961, the first national automobile, the Romi-Isetta. In 1972 it became a publicly held corporation, gaining thousands of shareholders and expanding its access to the capital markets.

ROMI’s business model is strongly based on the manufacture and sale of capital goods, focusing on machine tools, plastic processing machines, and cast and machined iron parts. The company operates with a high level of industrial verticalization, controlling the stages of casting, machining, sheet metal work, electromechanical assembly, and final assembly of equipment. Its products include universal lathes, CNC lathes, turning centers, machining centers, heavy and extra-heavy lathes, injection molding machines and blow molding machines for plastics, as well as parts, accessories, and technical assistance services. ROMI also operates a foundry capable of producing large gray, ductile, and compacted graphite iron parts, serving both the internal demand of its machines and external clients in Brazil and abroad. This combination of machine manufacturing and supply of cast and machined components results in a robust and diversified industrial base.

The company’s operations are organized into three business units. The main one is the ROMI Machine Unit, which in 2024 accounted for 66.4% of consolidated net operating revenue, with a portfolio of machine tools (conventional and CNC lathes, machining centers, vertical lathes, heavy and extra-heavy horizontal lathes, turning centers, and boring machines) and plastic processing machines (injection molding machines with clamping force between 70 and 1,500 tons and blow molding machines for parts of up to 100 liters). The second unit is the Burkhardt+Weber (B+W) Machine Unit, a German subsidiary acquired in 2011, responsible for 19.1% of revenue in 2024; it manufactures large horizontal machining centers and special 4- and 5-axis machines, aimed at sectors such as automotive, defense, construction and mining, and energy. The third unit is the Cast and Machined Parts Unit, which contributed 14.5% of net operating revenue in 2024, with capacity to produce around 50,000 tons per year in parts of up to 40,000 kg, developed according to technical specifications provided by clients.

ROMI serves a highly fragmented customer base exposed to different industrial segments. Its main end markets for machines and castings include the automotive industry (light and heavy vehicles), manufacturers of agricultural machinery, capital goods companies, consumer goods producers, tool and die makers, and manufacturers of hydraulic equipment, among others. In 2024, the company had approximately 2,595 active clients in the ROMI Machine Unit, more than 28 active clients in the Cast and Machined Parts Unit, and about 4,500 active clients in the spare parts and services area. The client portfolio is highly diversified, with no single customer accounting for more than 10% of total net operating revenue, and the concentration of the top 10, 20, 50, 100, 200, and 500 customers ranged from 20.6% to 71.9% of revenue, which reduces dependence on specific buyers.

The company’s geographic footprint combines a strong production base in Brazil with industrial and commercial operations abroad. ROMI operates 13 manufacturing units, 11 of them in Santa Bárbara d’Oeste (SP) and two in Reutlingen, Germany, with an installed capacity of approximately 2,900 industrial machines and 50,000 tons of castings per year. In addition to the parent company, the group includes several sales subsidiaries in the United States, Germany, Italy, France, the United Kingdom, Spain, Mexico, and an indirectly controlled company in China, as well as agents and representatives in other countries. In 2024, the domestic market accounted for 67.9% of consolidated revenue (R$ 828.7 million), while the remainder came from abroad, with highlights including China (9.8%), Germany (7.6%), the United States (3.8%), the United Kingdom, France, Argentina, Mexico, Sweden, Hungary, Spain, and Peru. This distribution reveals a relevant export profile and exposure to several global industrial regions.

In its commercial approach, ROMI has adopted since the 1960s a direct sales model, with its own network of branches, salespeople, and technical assistance covering the entire Brazilian territory. The company offers complete solutions, which may include everything from defining machines and processes to plant layout, production planning, operator training, and after-sales, including through its comprehensive assistance service (RAI) with remote support. In 2020, it launched ROMI MAAS, an equipment rental service, expanding access alternatives to its machines. In 2021, it began representing the FANUC Robodrill line in part of South America and created the fintech PRODZ, focused on granting credit to finance machines for clients, strengthening the integration between equipment offerings and financial solutions.

From a regulatory and technological standpoint, ROMI operates in an environment subject to environmental licensing and inspections by competent authorities, maintaining its units in compliance with federal, state, and municipal agencies. The foundry and machine manufacturing business requires strict compliance with environmental legislation, including obtaining and periodically renewing licenses, impact studies, and mitigation measures where applicable. In the specific case of the German unit B+W, exports to countries outside the European Union depend on licenses from the Federal Office for Economic Affairs and Export Control (BAFA). The company has a management system certified under ISO 9001 (quality), ISO 14001 (environment), IATF 16949 (automotive quality), and ISO 45001 (occupational health and safety), which structures production, safety, and industrial risk mitigation processes.

In environmental, social, and governance (ESG) practices, ROMI has maintained an Environmental Management System certified since 2005 and publishes an annual ESG Report, in addition to operating an ESG Portal with information on its commitments and initiatives. The report includes a materiality analysis, alignment with the United Nations Sustainable Development Goals (SDGs), and a greenhouse gas emissions inventory, started in 2022 and monitoring scopes 1, 2, and 3. In 2024, total environmental spending was R$ 3.168 million. The company prohibits electoral donations, direct or indirect, in accordance with its Anti-Corruption and Anti-Bribery Policy. In governance, in addition to being listed on B3’s Novo Mercado with ROMI3 shares and included in indices such as IGC-NM, IGC, and ITAG, the company maintains an active internal audit function reporting to the Audit and Risk Committee, including in the review of sustainability information, reinforcing formal control and transparency mechanisms for investors.