TPIS3 Triunfo

Triunfo Participações e Investimentos S.A., traded on B3 under the ticker TPIS3, is a Brazilian company created in 1999 focused on investments in the infrastructure sector. The company’s origin is linked to Construtora Triunfo S.A., which structured the company as a holding to concentrate and develop equity interests in highway concessions, electric power generation assets, port operations and, later, airport administration. Since the early 2000s, Triunfo has consolidated its role as an investor and operator of infrastructure assets through acquisitions, corporate restructurings and participation in public concession auctions, which gradually expanded its presence in different transport modes and in the energy segment.

Throughout its history, Triunfo has built a diversified business portfolio but has kept highway concessions as its main source of revenue. The company began operating with stakes in concessions such as Concepa, Econorte and Concer, in addition to investing in companies providing highway support services, such as Rio Bonito and Rio Guaíba. In parallel, it started operating port terminals through Portonave and related companies, and entered the hydropower generation sector with projects such as the Salto HPP (UHE Salto) in the State of Goiás and later with a majority stake in Tijoá, the concessionaire responsible for the Três Irmãos Hydroelectric Power Plant, on the Tietê River. It also established a presence in airport infrastructure with the concession of Viracopos International Airport in Campinas, consolidating a business model based on long-term concessions and regulated contracts.

Triunfo’s business model is organized into operating segments that reflect its main lines of activity: highway concessions, electric power generation, airport administration and port administration. The company’s corporate purpose is to hold equity interests in business corporations, invest in infrastructure businesses and provide civil engineering and general construction services. Although it has historically developed projects in all these fronts, the most recent financial statements indicate revenue concentration in the highway segment. As of December 31, 2024, all of Triunfo’s consolidated net revenue, approximately R$ 1.32 billion, was generated by the highway concessions segment, while the other segments did not record net revenue in the period, highlighting the current economic relevance of highways within the group.

In the highway concessions segment, Triunfo’s economic core, the company operates through subsidiaries that manage stretches of federal and state highways under concession agreements. The main operating companies are Concer, Triunfo Concebra and Triunfo Transbrasiliana, which together are responsible for managing 1,678.5 kilometers of highways in different Brazilian states. Concer operates about 180 kilometers of BR-040, connecting Juiz de Fora (MG) to Rio de Janeiro (RJ), a stretch that is relevant for the flow of cargo toward the coast of Rio de Janeiro and has a strong tourism traffic component. Triunfo Concebra is the group’s largest highway concession, with 1,176.5 kilometers along BR-060, BR-153 and BR-262, connecting Brasília (DF) to Betim (MG) via Goiás and Minas Gerais. Triunfo Transbrasiliana, acquired in 2015, manages 321.6 kilometers of BR-153 in the State of São Paulo, between Icém, on the border with Minas Gerais, and Ourinhos, on the border with Paraná, forming, together with Concebra and Econorte, an important logistics corridor on the country’s Center-South axis.

Triunfo’s highway operation is structured in typical phases of concession projects. In the initial phase, concessionaires carry out emergency repair work, pavement reinforcement, signage improvements and critical safety adjustments, meeting contractual requirements before full toll collection begins. In the operating phase, the companies invest in capacity expansion, construction of additional lanes, safety works such as pedestrian overpasses, modernization of traffic supervision and control systems, as well as routine and special maintenance of pavement, drainage, tunnels, safety devices and lighting systems. Revenues from these concessions derive mainly from toll collection, complemented by ancillary and alternative revenues provided for in the contracts, such as the operation of service areas, advertising and other initiatives linked to highway infrastructure, always under the regulation and supervision of the National Land Transport Agency (ANTT).

In addition to highways, Triunfo has consolidated a presence in electric power generation through hydropower assets. The company worked on the development and operation of the Salto HPP (UHE Salto) in Goiás through its subsidiary Rio Verde Energia, whose commercial operation began in 2010, and it held an interest in the Garibaldi HPP (UHE Garibaldi) project, to be implemented by Rio Canoas Energia. In the generation segment, Tijoá stands out, a company in which Triunfo holds a 50.1% stake and which is responsible for the operation and maintenance of the Três Irmãos Hydroelectric Power Plant, located on the Tietê River in Andradina (SP). Três Irmãos is the largest hydroelectric plant on the Tietê River in installed capacity, with 807.5 MW and guaranteed energy of 217.5 average MW, and its revenue is structured in regulated contracts, which reduces its exposure to direct competition with other generators, although it is subject to the rules and oversight of the Brazilian Electricity Regulatory Agency (ANEEL) and other bodies in the electricity sector.

In airport administration, Triunfo is a shareholder in the concessionaire Aeroporto Brasil Viracopos S.A., which took over the expansion, maintenance and operation of Viracopos International Airport in Campinas. The concession was awarded in an auction in 2012, in a consortium with other investors, and Viracopos became one of the main air cargo hubs in the country, in addition to handling a significant passenger flow. In 2023, the airport transported 12.5 million passengers and handled approximately 300 million tons of cargo, positioning itself as a strategic airport infrastructure asset in the Southeast. In addition, Triunfo structured port terminal projects through companies such as Portonave, Santa Rita and Portonaus, operating in container handling, refrigerated operations and the development of a private port terminal, still in project and structuring stages, reinforcing the company’s exposure to foreign trade logistics and the port chain.

Triunfo’s operations are heavily conditioned by regulatory frameworks and its relationship with the public sector, given the nature of public service concessions and the operation of essential infrastructure. In the highway segment, concession contracts are entered into with the federal government and supervised by ANTT, which regulates tariffs, mandatory investments, service standards and economic-financial rebalancing. In the electricity sector, regulation is carried out by bodies such as the Ministry of Mines and Energy, ANEEL, the National System Operator (ONS) and the Electric Energy Commercialization Chamber (CCEE), which define rules for contracting, operation and penalties. In airport infrastructure, the Civil Aviation Secretariat and the National Civil Aviation Agency (ANAC) play a central role in technical and economic regulation. This regulatory structure directly influences revenues, concession terms, investments, tariff reviews and contractual risks that impact Triunfo’s results and, consequently, the perception of TPIS3 shares on B3.

From a governance standpoint, Triunfo has been a publicly traded company since 2002 and carried out its first public offering of shares in 2007, when it was listed on the Novo Mercado segment of the former BM&FBOVESPA, now B3, assuming additional corporate governance commitments, such as share capital composed exclusively of common shares and more demanding transparency practices. The corporate structure evolved with the entry of institutional investors, such as BNDESPAR, which joined the shareholding base in 2013, and with reorganizations involving subsidiaries and investment vehicles. The company states that it operates with a focus on regulatory compliance and on adapting to the requirements of public agencies that supervise its concessions, although, in the information provided, it does not present detailed analyses of the financial impact of environmental, social and governance policies on its businesses. In this context, Triunfo and the TPIS3 ticker represent an investment thesis mainly linked to regulated highway concessions, with additional exposure to energy, port and airport assets, all governed by specific regulatory frameworks and long-term contracts.