EcoRodovias (ECOR3) Long-Term Investment Analysis

Business Overview and Concession Portfolio

EcoRodovias Infraestrutura e Logística S.A. is one of Brazil’s largest toll road operators. As of 2025, the company operates 12 highway concessions spanning over 4,800 km across 8 Brazilian states . These toll roads connect key industrial, agricultural, and port regions, making EcoRodovias a critical player in Brazil’s logistics network. Major assets include:

• Anchieta-Imigrantes System (Ecovias Imigrantes, SP): The vital 176-km corridor linking São Paulo city to Santos Port (Brazil’s busiest port) , handling heavy commuter and cargo traffic.
• Ayrton Senna-Carvalho Pinto (Ecopistas, SP): Highways connecting São Paulo to the inland Paraíba Valley.
• Rio–Niterói Bridge (Ecoponte, RJ): A landmark 13-km toll bridge connecting Rio de Janeiro to Niterói , an essential urban link.
• BR-101 in Espírito Santo (Eco101): A 475-km coastal highway from the Bahia border to Rio de Janeiro state line, giving access to ports in Vitória .
• Pelotas Highway Cluster (Ecosul, RS): 457-km network in Rio Grande do Sul’s south, connecting to Uruguay .
• Minas Gerais and Goiás Highways: Concessions like Eco050 (BR-050 between MG/GO), Eco135 (MG), and Ecovias do Cerrado (connecting Goiás and Minas) support Brazil’s agribusiness corridors .
• New Concessions (2023–25): Ecovias do Araguaia (BR-153/080/414 in GO/TO), EcoRio Minas (connecting Rio de Janeiro and Minas Gerais), Ecovias Noroeste Paulista (600 km in northwest São Paulo previously managed by TEBE), and Ecovias Raposo Castello – the “Nova Raposo” urban motorway system around São Paulo . These recent additions in 2024–25 expanded EcoRodovias’ network and extended its average concession life to over 20 years .

In addition to highways, EcoRodovias operates a port logistics asset – Ecoporto Santos, a container and logistics terminal at Santos Port – and a logistics hub Ecopátio Cubatão. This diversified portfolio of roads and logistics services positions the company to capture end-to-end transportation demand . EcoRodovias’ controlling shareholder is Italy’s ASTM Group (part of the Gavio family conglomerate), which owns ~51.9%, while ~48.1% of shares are free float . The company is listed on the B3 (São Paulo Stock Exchange) under ticker ECOR3, and is an Ibovespa index component, reflecting its significance in Brazil’s market.

Latest Financial Results and Performance

EcoRodovias has delivered growing revenues and EBITDA, though recent earnings have faced pressure from expansion costs and higher interest rates. According to the Q2 2025 results:

• Traffic & Revenue: Toll road traffic jumped +27% in 2Q25 (year-on-year), boosted by new toll collections on recently acquired stretches (e.g. Ecovias Noroeste Paulista from March 2025) and organic growth . Net revenue (adjusted, ex-construction) reached R$1,818.9 million in 2Q25, up 17.1% YoY . First-half 2025 revenue was R$3.49 billion (+13.4% YoY) .
• Profitability: Adjusted EBITDA hit R$1,363.2 million in 2Q25 (+19.0%), with a robust 74.9% EBITDA margin . The high margins reflect efficient cost control (cash costs rose just 5.4%, below inflation ) and the addition of lucrative new toll contracts. Net income was R$203.9 million for the quarter, a 23.9% drop from 2Q24 . Despite operational improvements, earnings fell due to sharply higher depreciation (from new investments) and a 50%+ spike in interest expenses amid Brazil’s high rates . Table 1 summarizes the latest results:

Financial Metric	2Q 2024	2Q 2025	Change (YoY)
Adjusted Net Revenue	R$1,553.8 m	R$1,818.9 m	+17.1%
Adjusted EBITDA	R$1,145.9 m	R$1,363.2 m	+19.0%
EBITDA Margin	73.8%	74.9%	+1.1 pp
Net Income	R$268.1 m	R$203.9 m	–23.9%
Net Debt	R$14,390.8 m	R$19,745.2 m	+37.2%
Net Debt / EBITDA (LTM)	3.3×	3.9×	+0.6×

Table 1: EcoRodovias Key Financials (2Q25 vs 2Q24). Sources: Company Q2 2025 Earnings Release .

EcoRodovias’ leverage has increased with its growth drive. As of June 2025, net debt stood at R$19.7 billion, up 37% from a year prior . The Net Debt/EBITDA ratio is 3.9×, up from 3.3×, as the company issued new debt (e.g. funding concession fees and construction) . Cash on hand was R$3.17 billion, down one-third YoY . This higher debt load and Brazil’s ~13.75% benchmark interest rates have driven interest costs significantly higher, constraining net income .

Nonetheless, operating metrics are solid. In 1H25, EcoRodovias delivered R$2.62 billion EBITDA (+17% YoY) at a 75% margin , and management highlights ongoing efficiency gains (the cash cost/revenue ratio fell to 25%, from 35% in 2022) . Return on equity (ROE) stands around 19.6%, reflecting decent profitability on capital . The backlog of inflation-indexed toll increases provides some revenue protection – e.g. toll rates were raised ~5–6% in mid-2025 on certain concessions to adjust for Brazil’s IPCA inflation .

Dividend Policy and Distribution History

EcoRodovias’ dividend policy follows Brazilian corporate law, which mandates a minimum 25% payout of annual net income. In practice, the company has paid only the mandatory minimum in recent years, as cash is largely reinvested in growth. At the April 2025 shareholders’ meeting, management approved a R$214.7 million dividend, equal to the 25% minimum of 2024 profits . This amounts to roughly R$0.31 per share, and will be paid out in late August 2025 . The ex-dividend date was August 5, 2025, and at the current share price the yield is about 4.5% .

Dividend payouts have been modest and inconsistent over the past decade. EcoRodovias suspended or minimized dividends during heavy investment years. For example, total dividends in 2022 were only R$0.01 per share (effectively nil yield) as the company preserved cash for new concessions. Payouts resumed in 2023–2024 as earnings recovered: shareholders received R$0.19/share in July 2024 and now R$0.31 in 2025 . Still, in 6 of the last 10 years no dividends were paid , highlighting that EcoRodovias prioritizes growth capex over large distributions. Management has not communicated any special dividend plans beyond the mandatory minimum.

For income-focused investors, EcoRodovias’ dividend yield at ~4–5% is in line with Brazilian market averages, but lower than some mature infrastructure peers. The payout ratio is conservative (~16% of earnings) , which could allow dividends to grow if profits rise. Notably, Brazil currently does not tax dividends at the shareholder level (see Taxation below), so foreign investors receive the full gross amount.

Strategic Expansion and Growth Plans

EcoRodovias has been aggressively expanding its concession portfolio to drive future growth. In the past few years, the company added seven new highways via federal and state auctions, significantly increasing its scale . Key strategic moves include:

• New Concessions: EcoRodovias won major bids such as Ecovias do Cerrado (2019, a 30-year federal concession in GO/MG), Ecovias do Araguaia (2021, 35-year concession of BR-153/414/080 connecting Brazil’s north-south axis), EcoRio Minas (2022, 30-year BR-040 highway between Rio and Minas Gerais), and Ecovias Raposo Castello (the “Nova Raposo” lot in Nov 2024, 30-year São Paulo metro-area highways) . Each new project broadens EcoRodovias’ geographic reach and extends the average remaining concession life (now 20+ years vs ~10 years in 2018) .
• Integration and Scale: The acquisition of MGO (Ecovias Minas Gerais & Goiás) in 2020 consolidated BR-050 under EcoRodovias . Similarly, the Noroeste Paulista state lot (600 km awarded in 2022) began tolling in 2025 and folds a formerly separate operator (TEBE) into EcoRodovias’ platform . Growing to 12 concessions gives the company scale efficiencies in procurement, technology, and shared services.
• Capital Expenditure Plans: With new contracts come heavy construction obligations. EcoRodovias is committing multi-billion-real CAPEX to widen lanes, install toll plazas, and upgrade infrastructure. In 1H 2025 alone, the company invested R$2.12 billion in capex (+15.7% YoY) , delivering 34 km of widened roads and other improvements. Management expects elevated capex over the next 5 years as projects like Nova Raposo require new lanes, interchanges, and the implementation of a modern Free-Flow tolling system (a barrier-free electronic toll collection) . These investments aim to boost future toll revenues and ensure high service quality, but they also mean negative free cash flow in the near term.
• Sector Pipeline: Brazil’s government is accelerating infrastructure concessions, with 15 highway auctions planned in 2025 alone (potential R$161 billion in new investments) . EcoRodovias has indicated interest in selective upcoming bids, leveraging its strong operating track record. However, management must balance ambition with financial discipline given the company’s stretched balance sheet. EcoRodovias did recently pause pursuits of some opportunities to focus on digesting its new projects and restructuring debt (including a R$2.0 billion debenture issue in July 2025 to refinance short-term obligations) .

Overall, EcoRodovias’ strategy is to grow profitably through new concessions, while extracting efficiencies in its expanded network. The goal is to capture Brazil’s rising demand for private toll roads – an industry expected to see 63% growth in investment over five years – and convert that into both toll revenue and eventual free cash flow once the capex cycle tapers off. Successful execution of these projects (on time and on budget) is critical to realizing the anticipated earnings growth.

Valuation and Stock Performance

ECOR3 shares trade on the B3 exchange and have been relatively undervalued by global standards, reflecting Brazil-specific risks and the company’s debt load. As of August 2025, ECOR3 is around R$7.00 per share, giving a market capitalization of ~R$4.7 billion (approx US$950 million). Key valuation metrics:

• Price-to-Earnings (P/E): ~6.3× trailing earnings . This low P/E (and ~7× forward P/E) suggests the market has priced in considerable risk or earnings stagnation. By contrast, many global toll road operators trade at double-digit P/E ratios.
• EV/EBITDA: ~5.2× (trailing enterprise value to EBITDA) . With an enterprise value around R$25 billion and LTM EBITDA ~R$4.8B , EcoRodovias’ EV/EBITDA is modest. Historically, CCR (its larger Brazilian peer) and European peers command higher multiples (e.g., ~8× or more) . EcoRodovias’ multiple reflects both its growth potential and its higher leverage (which inflates EV).
• Price-to-Book (P/B): ~1.2× . The stock trades just above book value (book value ~R$5.43/share ). This is reasonable given ROE ~20%, but it indicates no substantial premium for intangibles or growth yet.
• Price/Sales: ~0.45× sales , and EV/Sales ~2.4× , reflecting the high EBITDA margin business model.
• Dividend Yield: ~4.5% (forward) as noted, which is moderate.

Stock performance: ECOR3’s share price has been volatile. Over the last 52 weeks it ranged from a low around R$3.79 to a high of R$8.22 . The stock is down ~13% year-on-year , underperforming Brazil’s Ibovespa index slightly, as investors reacted to interest rate concerns and equity issuance rumors. However, since early 2023 the stock has rebounded from multi-year lows (~R$4) to the current ~R$7 level, as some positive catalysts (new toll revenues, easing inflation) emerged. ECOR3’s 5-year beta is only 0.8 , indicating lower volatility than the overall market – not uncommon for defensive infrastructure stocks, though local political/regulatory events can still swing sentiment.

From a valuation perspective, EcoRodovias appears cheap relative to peers. For instance, CCR (Motiva), which operates a larger toll portfolio and airports, has traditionally traded at a premium (EV/EBITDA ~6–7×, P/E in high single digits) due to its scale and shareholder base. Internationally, VINCI (France) or Ferrovial (Spain) trade at much higher multiples (often EV/EBITDA > 10×, P/E > 15×) as investors value their stable cash flows in developed markets . EcoRodovias’ discount reflects the market’s assessment of Brazil’s macro risks and the company’s high leverage. If EcoRodovias can successfully deleverage and its new concessions mature, there is potential for valuation multiple expansion. Conversely, any equity raise to shore up the balance sheet could dilute shareholders and cap near-term upside.

Peer Comparison

In Brazil’s toll road sector, EcoRodovias’ main competitors are CCR S.A. (now reorganized, with the highways arm renamed Motiva, ticker MOTV3) and Arteris S.A. (now privately held).

• CCR (Motiva Infraestrutura) – Market Cap: ~R$26–27 billion; Highways: ~3,955 km (plus urban transit systems and airports). CCR is larger and more diversified, with state-controlled entities (São Paulo state and Previ pension) as key shareholders. CCR’s size and stronger balance sheet have historically given it lower financing costs. In terms of valuation, CCR tends to trade at a premium EV/EBITDA (~7×) versus EcoRodovias’ ~5× , and CCR’s dividend yield has been comparable or slightly higher at times. CCR’s strategy has also expanded into new arenas (e.g., managing São Paulo’s subway lines and regional airports), whereas EcoRodovias is focused purely on roads and logistics. This specialization may allow EcoRodovias to be nimbler in highway auctions, but CCR’s diversified model provides multiple growth avenues.
• Arteris – Once listed on B3, Arteris was taken private by Spain’s Abertis and Brookfield in 2019. Arteris operates a network of federally concessioned highways (~3,200 km) mainly in southeast Brazil (e.g. Autopista Litoral Sul, Fernão Dias). While its financials are not public now, Arteris’ presence means intense competition in bidding – Abertis (backed by Atlantia, now part of the Benetton/Blackstone group) often competes for the same concession opportunities. Notably, EcoRodovias partnered with GLP in 2021 to win the BR-153 (Araguaia) concession against consortia that included Arteris , showing its ability to go head-to-head with global players.
• Others: A few regional operators and new entrants exist (e.g., Investimentos e Participações em Infraestrutura – Invepar, and foreign-led consortia for new federal concessions). But EcoRodovias and CCR/Motiva together dominate new auction wins, leveraging their operational track records. An emerging factor is international infrastructure funds teaming up with local firms, which raises competitive pressure (higher concession fee bids, etc.).

On a global scale, EcoRodovias can be compared to toll road operators like Vinci Highways, Ferrovial, Aleatica (Atlantia’s LatAm arm), or Transurban in Australia. These firms enjoy stable traffic in developed markets and often have lower risk profiles – for example, Vinci’s toll roads in Europe see GDP-like traffic growth and benefit from ultra-low interest rates, so Vinci trades at ~20× earnings and a sub-4% yield. By contrast, EcoRodovias’ traffic growth is higher (due to Brazil’s developing infrastructure) but comes with higher volatility. Its current P/E ~6× and EV/EBITDA ~5× are deeply discounted relative to the ~12–15× EV/EBITDA typical for mature-market toll roads . This suggests significant upside if EcoRodovias can eventually prove as reliable as a Vinci or Ferrovial – but investors demand a risk premium for Brazil’s economic and political uncertainties.

In summary, EcoRodovias offers a mix of growth and risk: faster concession expansion than peers, but with more leverage and exposure to Brazil’s economy. Its local peer CCR provides a slightly lower-risk, lower-growth profile, whereas international peers provide stability at much higher prices. For a foreign investor comfortable with Brazil, EcoRodovias could be seen as a high-beta value play within the global toll road industry.

ESG Profile, Governance, and Risk Factors

EcoRodovias positions itself as a responsible infrastructure operator, aligning with ESG (Environmental, Social, Governance) best practices:

• Environmental: The company incorporates sustainability into highway management, such as wildlife crossings on roads, monitoring of air quality and noise, and preserving green areas around its highways (notably the Serra do Mar Atlantic forest by the Anchieta-Imigrantes route). It is investing in technology like the “Free Flow” toll system – a barrier-free electronic tolling first for Brazil – to reduce congestion and emissions from idling vehicles . EcoRodovias also promotes recycling (e.g., asphalt reuse), and its Ecoporto logistics unit has initiatives to minimize port water pollution.
• Social: Road safety and community engagement are focal points. The company runs driver education programs and provides medical/emergency services on its highways. It also invests in nearby communities – supporting local employment (over 5,700 employees ), and sponsoring social programs in education and health for populations along its concession corridors.
• Governance: EcoRodovias adheres to high governance standards as a Novo Mercado listed company (100% voting common shares, stringent disclosure and board requirements). The controlling shareholder, ASTM/Gavio, brings international governance experience and has two of its executives on EcoRodovias’ board, alongside independent directors. Minority shareholders benefit from tag-along rights and a history of dividend distribution at least at the mandatory level. There have been no major governance scandals in EcoRodovias’ recent history; however, investors should note that any parent-subsidiary dealings (e.g., service contracts with ASTM affiliates) are potential related-party considerations (so far, nothing material of concern has been reported). The company publishes an annual integrated report and is evaluated by ESG rating agencies (EcoRodovias currently falls in a “medium risk” ESG category per Sustainalytics, in line with global peers in transportation infrastructure).

Risk factors that investors should weigh:

• Regulatory & Political Risk: Toll road concessions in Brazil are long-term contracts with the government. Changes in regulation (such as how toll tariffs are adjusted for inflation or how compensation is handled for unachieved traffic forecasts) can impact revenues. While Brazil has a generally strong legal framework for concessions, political pressure has occasionally led to toll freezes or renegotiations. Any shift in government stance on private infrastructure (for instance, more populist approaches to toll pricing or a slowdown in PPP programs) could hurt EcoRodovias. The current administration continues to support private concessions, but this risk is ever-present over a 20–30 year horizon.
• Macro-Economic & Currency Risk: EcoRodovias earns and spends in Brazilian Reais (BRL). High domestic inflation and interest rates increase operating costs and debt service. In the first half of 2025, Brazil’s interest rates remained high (~13.75%), which directly affected EcoRodovias’ net income via financing costs . A foreign investor also faces FX risk – the BRL can be volatile. For example, in the past 5 years, USD/BRL has swung from ~3.8 to ~5.7. Currency moves will impact the effective dollar returns on ECOR3’s dividends and price. On the positive side, Brazil’s inflation-indexed toll formulas and absence of dividend withholding tax (see below) provide some buffer against domestic inflation for foreign holders.
• Financial Leverage: EcoRodovias carries a high debt load (Debt/Equity ~5.7×, Net Debt/EBITDA ~3.9×) . This amplifies exposure to interest rate increases and refinancing risk. A large portion of the debt is via local debentures and project finance with floating rates (CDI-based). If Brazilian interest rates stay elevated or if the company’s credit rating falls, interest expenses could consume a bigger share of cash flow, squeezing equity returns. The company’s strategy assumes it can refinance debt at reasonable rates and that Brazil’s rates will gradually decline in coming years – an area to watch closely.
• Execution & Integration Risk: The expansion into many new concessions in a short time could strain management capacity. EcoRodovias must simultaneously oversee multiple large construction projects (e.g., adding lanes on BR-153 Araguaia, upgrading SP-270/280 Raposo system, etc.). Any cost overruns or delays could reduce the project IRRs. There’s also integration risk with acquired assets – ensuring that new concessions (some in far-flung regions) are smoothly consolidated into EcoRodovias’ operating culture and systems. Thus far, the company has executed well (e.g., starting tolling on new highways on schedule ), but the margin for error is thin given the investment commitments.
• Traffic Volume Risk: Traffic and toll revenue are influenced by economic activity. A recession in Brazil, higher fuel prices, or changes in supply chain routes can all affect vehicle counts. Heavy vehicle (truck) traffic is especially tied to export commodity flows (e.g., soy, sugar to ports) – a slowdown in those sectors or competition from new railways could impact volumes. The Covid-19 pandemic in 2020 showed that extreme events can drastically cut traffic (though contracts often allow some mitigation, like term extensions or tariff recomposition for force majeure). Investors should be prepared for traffic volatility; however, diversification across 12 concessions and different regions/road types helps EcoRodovias moderate localized traffic drops.
• Concession Renewal Risk: Most of EcoRodovias’ concessions run for decades (the next major one to expire is likely late 2020s), but eventually they face renewal or rebidding. There is always uncertainty whether the incumbent will retain the concession and on what terms. That said, given EcoRodovias’ close partnership with governments (and ASTM’s long-term approach), the company is positioning to remain a leading operator well into the future.

Bottom line: EcoRodovias’ investment thesis comes with a mix of high growth prospects and elevated risks. Prudent risk management (e.g., maintaining sufficient liquidity – currently R$3+ billion cash, and staggering debt maturities) and improvements in Brazil’s macro environment (falling interest rates, stable policies) would significantly bolster the company’s outlook.

Accessibility for Foreign Investors (ADR, Access, Taxation)

For international investors seeking exposure to EcoRodovias, there are a few avenues:

• Direct Purchase on B3: ECOR3 shares can be bought directly on the Brazilian stock exchange via a broker with access to B3. Many global brokerage platforms (or their partners) offer trading in Brazilian equities for foreign clients. This is the most straightforward route to ensure liquidity.
• ADR (American Depositary Receipt): EcoRodovias does not have a NYSE/Nasdaq-listed ADR program. However, an OTC-level ADR exists (unsponsored), occasionally trading under ticker ECOXY or similar (1 ADR = 1 common share). Liquidity in the ADR is very limited. Most foreign institutional investors instead prefer to hold the local shares. Another alternative is Brazil-specific investment funds or ETFs – for instance, the VanEck Brazil Small-Cap ETF (BRF) holds EcoRodovias in its portfolio . This provides indirect exposure via a U.S. traded vehicle.
• Custody and Settlement: Investors purchasing ECOR3 abroad will typically do so through a custodian arrangement. Brazil has a well-established process for foreign ownership (under CMN Resolution 4,373). Once registered, foreign investors can trade Brazilian stocks freely, with their holdings custodied by local agents. Settlement and corporate actions (like dividends) are reliably handled through B3’s systems in coordination with global custodians (e.g., BNY Mellon, Citi).
• Dividend Taxation: A key advantage for foreign investors is Brazil’s tax treatment. Brazil currently imposes 0% withholding tax on dividends paid by Brazilian companies to both residents and non-residents . (Dividends are paid from post-tax profits, so the government taxes them at the corporate level only.) This means the gross R$0.31/share dividend EcoRodovias is paying in 2025 is received in full by overseas shareholders. Furthermore, capital gains from trading Brazilian stocks on the exchange are exempt for non-resident investors (not domiciled in tax havens) under the 4,373 framework . This is a very investor-friendly regime – foreign holders essentially face no Brazilian taxes on equity gains or income. Investors would only need to consider any taxes in their home country on dividends or gains. (Caution: Brazil is debating tax reform that could introduce a dividend withholding tax in the future, likely around 15%. As of August 2025, no such tax is in force, but this is something to monitor in coming years.)
• FX and Repatriation: When investing in ECOR3, foreigners will deal in Brazilian Real. Repatriating funds (selling shares and bringing money out) is straightforward under the financial regulations, with free flow of capital. The BRL/USD rate will affect your returns. Some investors hedge the currency, though hedging costs can be high given Brazil’s interest rate differential.
• Other Considerations: It’s worth noting that EcoRodovias’ trading volume is decent (~3 million shares daily on average) , and it has options traded on B3 for those looking at hedging or leverage. As always, ensure your brokerage can handle corporate actions (e.g., if EcoRodovias were to do a rights offering or split – none announced at present). Also, be mindful of the time zone; Brazil’s market hours will differ from U.S./European hours.

In summary, foreign investors can access ECOR3 quite readily, and Brazil offers a friendly tax regime for foreign portfolio investors. One should simply be aware of currency risk and the absence (so far) of a highly liquid ADR – direct investment via local shares or Brazil ETFs are common paths to gain exposure.

Conclusion

EcoRodovias (ECOR3) presents a compelling long-term investment story within emerging markets infrastructure. The company has a strong business model – operating essential toll roads with high profit margins and regulated returns – and it is positioned to capitalize on Brazil’s infrastructure expansion through an enlarged concession portfolio. For investors seeking both dividend income and capital appreciation, EcoRodovias offers:

• A baseline dividend yield around 4–5% with potential growth as new projects bear fruit (and no local withholding tax on that income) .
• A discounted valuation (6× earnings, ~5× EV/EBITDA) that could re-rate higher if the company successfully reduces debt and proves the cash-generative power of its new highways .
• Exposure to one of the world’s largest and most promising road markets – Brazil has a vast need for upgraded transport infrastructure, and private operators like EcoRodovias are at the forefront of meeting that demand.

However, investors must be mindful of the risks. EcoRodovias operates in a high-volatility environment: economic swings, political decisions, and interest rate cycles in Brazil will impact the stock. The company’s elevated leverage is a double-edged sword – enhancing equity returns in good times but increasing vulnerability in downturns. Prudent investors may want to monitor progress on debt reduction (e.g., Debt/EBITDA trending down) and watch for Brazil’s central bank easing monetary policy, which would alleviate interest pressure.

For foreign investors specifically, ECOR3 can be a valuable addition for diversification – it is a pure-play on emerging market infrastructure growth with a tangible asset base. Its performance may not correlate strongly with developed market stocks (given local factors), thus providing portfolio diversification benefits. Entering at today’s valuations, one is essentially betting that Brazil’s highways will continue to see heavy usage and toll rate increases for decades to come, and that EcoRodovias will translate that into growing cash flows. If that thesis holds, the rewards could include both steady dividend streams and substantial stock price appreciation from the current depressed levels.

In conclusion, EcoRodovias offers a unique mix of infrastructure stability and emerging market growth. It is “easy” Brazil investing in the sense of being anchored in real, productive assets (roads, ports) that serve the economy’s arteries. Yet it also requires patience and risk tolerance, as the journey may be bumpy. For long-term investors able to navigate the macro potholes, EcoRodovias could be a highway to solid total returns in the years ahead.

Sources:

• EcoRodovias Investor Relations – Earnings Release 2Q 2025 ; Integrated Report 2024
• The Rio Times – “EcoRodovias Profits Fall in Q2 2025 as Big Bets on Highways Trigger Rising Debt” (July 31, 2025)
• ASTM Group Press Release (Nov 29, 2024) – New “Nova Raposo” Concession Award
• Market data from StockAnalysis and Yahoo Finance (ECOR3)
• Dividends info from DivvyDiary/Digrin
• B3 Exchange – Taxation guide for Non-Residents (2025)
• Company filings and official notices (Investor Presentations, Notices to Market) .

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