Good morning, and welcome to Traxión's First Quarter 2025 Earnings Conference Call. My name is Sofia, and I will be your conference operator for today's session. At this time, all participants are in listen-only mode. After the speaker's remarks, there will be a question-and-answer session. We are joined by Aby Lijtszain, Co-founder and Executive President; Rodolfo Mercado, Chief Executive Officer; Wolf Silverstein, Chief Financial Officer; and Antonio Tejedo, Investor Relations Vice President. I will now hand the call to Aby Lijtszain for some opening remarks. Good morning, everyone. Thanks for joining us today. As usual, there are many interesting matters to discuss. For this quarter, Traxión posted another positive set of results, and we are now able to see many improvements across the company, with margins and cash flow as the main ones. Revenues posted a growth of 9.2%, a healthy increase of more than 17% in EBITDA, a margin expansion of 130 basis points, and net income up more than 16%. These are very favorable figures given the current circumstances, proof that our efficiencies plan is effective. It was a rough quarter, with a lot of volatility and uncertainty generated by the ongoing trade war. However, we continue to be optimistic about Mexico and its long-term relationship with the United States. Mexico has several advantages that make it an excellent trade partner. We are the southern neighbor of the United States, we have access to two oceans, one of the most competitive labor forces in the region, and basically the same time zones. Most important, the country has an enormous installed capacity for manufacturing that is very difficult to replicate elsewhere, with the same advantages I just mentioned. We think that United States' real tension is with China, not with Mexico, but that has nonetheless generated instability across the board that has driven trade volumes to be intermittent and somewhat inefficient. Shifting gears, when we budgeted 2025, we did so believing that it was going to be an especially challenging year on many fronts. Because of that, we decided to be more cautious about CapEx in order to privilege the company's cash flow and profitability profile. Moving on, we have properly prepared the company to absorb Solistica, as we believe that this transaction will transform the asset-like business lines of Traxión, as we have expected since 2021. Solistica will add up to 50% more square footage of warehouse area under management and has the capacity to increase significantly the volume of our cargo brokerage operations. In that line, the deal's approval continues to advance through the regulatory process, and we expect to have news soon. Please rest assured that we will do our best to be close to our clients, guarantee our operations, and protect the balance, as we have always done in the past. Thanks for your attention. I will now hand over to the others. Please go ahead. Thank you, Aby. Welcome, everyone. I will now dive deeper into some operating highlights. The 3PL business continues to become more efficient. As you can see, there are fewer square meters under management, and we continue to grow our revenue in such services. This is mainly due to the consolidation of some of our clients, with a much more effective space utilization and providing more services that has resulted in a growth in revenue of more than 19%, with a healthy spread of 210 basis points between revenue and cost per square meter. In terms of cargo, you can see that this period, a larger than usual portion of the CapEx was to renovate our fleet. This is part of a modernization initiative across the company, which will enable us to become even more efficient in fuel consumption, with less emissions as newer engine technologies become available. Moving on to people mobility, and in line with the overall strategy for this year, we have been focusing on fleet productivity and profitability. We continue to see activity in this market, and our commercial pipeline for the year has not changed. There was a CapEx amount exercised this period, but we will see the revenues in the following months, as usual. However, in the first quarter, we conducted an extensive fleet and client reshuffling of approximately 600 units, which were shifted to new clients under much better conditions, thus enhancing the profitability of our asset base. In commercial terms, we have more than doubled our footprint in Ciudad Juárez, which we entered less than two years ago, and is showing a very strong consolidation process. Also, our presence in both Puerto Vallarta and Los Cabos has penetrated as planned, and we expect to continue to develop and capture a good share of those new markets. As you can see, we were very active in the first quarter of 2025, and we are seeing the benefits of the efficiencies plan we started on the second half of last year. Having said that, I will now hand it over to Wolf. Please. Thank you, Rodolfo. Welcome, everyone. As usual, I will take you through the most relevant financial metrics. First, in March, we announced the execution of a new MXN 10 billion credit facility with a syndicate of banks. This is a very important milestone since we were able to refinance our outstanding facilities, have some backup, and improve the overall cost of financing moving forward. The facility is integrated by a long-term, simple credit line of MXN 6.5 billion, with increasing amortizations and maturity in 2030, including a MXN 1 billion revolving line and a committed loan of MXN 2.5 billion to strengthen the company's liquidity position. The first withdrawal was done at the end of March for approximately MXN 2.9 billion to replace the former facility. Please bear in mind that we do not intend to utilize the full MXN 10 billion facility. All of that will improve significantly our debt profile for the next years. Overall, this quarter, the long-term debt increased and the short-term decreased, and we now carry 68% of our debt with floating rate. Moving on, as we shift to the bottom line, we start to see the result of the efficiencies program we kicked off during the second quarter of last year. This has resulted in a very healthy growth of more than 23% in operating income as we became more efficient in expense management, both in absolute terms and as a thank you, Rodolfo. Welcome, everyone. As usual, I will take you through the most relevant financial metrics. First, in March, we announced the execution of a new MXN 10 billion credit facility with a syndicate of banks. This is a very important milestone since we were able to refinance our outstanding facilities, have some backup, and improve the overall cost of financing moving forward. The facility is integrated by a long-term, simple credit line of MXN 6.5 billion, with increasing amortizations and maturity in 2030, including a MXN 1 billion revolving line and a committed loan of MXN 2.5 billion to strengthen the company's liquidity position. The first withdrawal was done at the end of March for approximately MXN 2.9 billion to replace the former facility. Please bear in mind that we do not intend to utilize the full MXN 10 billion facility. All of that will improve significantly our debt profile for the next years. Overall, this quarter, the long-term debt increased and the short-term decreased, and we now carry 68% of our debt with floating rate. Moving on, as we shift to the bottom line, we start to see the result of the efficiencies program we kicked off during the second quarter of last year. This has resulted in a very healthy growth of more than 23% in operating income as we became more efficient in expense management, both in absolute terms and as a percentage of revenue, which shows an improvement of 170 basis points compared to the same period of last year. That drove a growth of more than 17% in EBITDA and a 130 basis point expansion in margin. Also, I want to highlight the improvement in operating cash flows. Net operating cash flow came in more than 21% higher than in the same period of last year to post more than MXN 1.3 billion. If we look at the cash flow and then take out both interest expense and CapEx, we are looking at an operating cash flow neutral position this quarter, which is indeed very good news. Finally, net income grew more than 16%, another very good piece of news, especially with the macro environment and uncertainty. This was mainly due to the efficiencies plan that management started last year. Thanks for your attention. I will hand over to Tonio. Thanks, Wolf. I will now talk about the most relevant ESG milestones we achieved in the first quarter. Since 2019, Traxión has deployed a comprehensive and robust ESG strategy based on four guiding principles: governance, people, planet, and profitability, a strategy that is recognized year after year by the most prestigious ESG rating platforms. Perhaps the most important matter this period was that the company was included, for the very first time, in the Global Sustainability Yearbook of S&P Global, one of the most prestigious international recognitions in sustainability. This achievement reflects our commitment to best ESG practices and transparency in communicating our progress. The inclusion is especially significant considering that, out of the 7,690 companies evaluated across 62 industries worldwide, only 780 were selected to be part of the yearbook this year, positioning Traxión as one of the only two Mexican companies in the transportation and infrastructure sector to be recognized. Additionally, in the first quarter, we received our 2024 Carbon Disclosure Project Climate Change Rating, which we maintained at level B, stating that management is taking coordinated action on climate issues. This is four levels above the global transportation sector average and two levels above the North American regional average. CDP is the world's most recognized international environmental disclosure platform, providing relevant information to investors, companies, and governments. In that line, this year, one of our main decarbonization strategies is to design, develop, and implement strategic projects in collaboration with our clients, aiming to reduce carbon emissions through the use of clean technologies and greater efficiencies in the services we offer them. We continue to incorporate zero-emission electric vans into our last-mile fleet and install solar panels for electricity generation at our facilities whenever the techno-economic conditions allow. As you can see, our efforts on the ESG front do not cease. We continue to be very active and to achieve the highest levels of reporting and transparency in line with our leadership. With this, I end today's remarks and will open the floor to Q&A. Thank you. We will now conduct a Q&A session. If you would like to ask a question, please press the raise-your-hand button located at the bottom of the screen. We remind you that all lines have been placed on mute. When it is your turn to ask a question, you will be given permission to speak. You will then be able to unmute yourself and ask your question. We will now pause for questions. Our first question comes from Guilherme Mendes at JP Morgan. Hey, hi, Aby, Rodolfo, Wolf, and Tonio, thanks for taking my question. I have two questions. The first is, on the fourth quarter conference call, you guys mentioned about an outlook for the year, including revenues growing by low teens and EBITDA likely growing by mid-teens. Just wondering now, given all the geopolitical uncertainty, if that's still the current base outlook for the year X, this Solistica acquisition. The second question is on the efficiency plans. First, congrats on the great margins on the quarter, but just wondering if these efficiency plans are already fully reflected on the first quarter numbers or if you can expect some kind of upside from the second quarter onwards. Thank you. Please unmute yourself to answer the question. Thank you, Gui, for your questions. First and foremost, I want to apologize for the recent disruption in the call. Our provider's Wi-Fi was down for a moment, but I expect no further problems. Answering your first question, Gui, in terms of the preliminary informal organic guidance that we gave in the 2024 earnings call, that's still the case. We are looking at something on the low teens for top-line growth and something around the mid-teens on EBITDA with a little expansion in the margin. Most important, and I think this is a key thing to bear in mind, is that we are going to reduce the CapEx significantly to what you saw in the past four years. We are looking at something around the MXN 2.3 billion mark. Okay? Hi, Gui. How are you? Good morning. This is Wolf. Regarding your second question, as we spoke in the previous calls, we have still some room for some efficiencies to put in place and to reflect in the numbers on the company, even though the margins come back to the 18.5% or something around. We still are looking for different rooms that we already achieved, and you will see it in the couple of quarters coming to the next periods. That's very clear. Thank you, both guys. Thank you. Our next question comes from Alejandro Demichelis from Jefferies. Please unmute yourself. Yes, good morning. Good morning. Thank you very much for taking my questions. A couple of questions. Tonio, you just mentioned the CapEx of MXN 2.3 billion this year. Maybe you can kind of indicate how that CapEx is going to be allocated between cargo, personnel, and so on. The second question is, Aby, you mentioned that the Solistica deal is going through the regulatory process. Maybe you can kind of indicate what has been, say, taking this long to get this deal kind of in time. Maybe any kind of discussions you're having with the regulator that will help. Thank you. Hi, Alejandro. How are you? This is Wolf. Regarding your first question, talking about the CapEx details, we're expecting something around 40% in the cargo division, basically to renew and to modernize our fleet, approving, let's say, the new technologies coming this year. Another 40% around the mobility of people division, and the rest will be for something in the logistics and technology division. Basically, it will be something that we are expanding in the couple of quarters in the 3PL business. Thank you. Yeah. Hi, Alejandro. Usually, the deals take around four months. You're right. In this case, it has been taking a little bit long. We expect to be close soon, very soon. I can say that I don't see any important thing that makes the deal delay than the change of government in Mexico. Because of the change of the government, I see that they are working a little bit slower than usual. I mean, I'm not worried about the closing of the transaction. Okay. That's very useful. Thank you very much. Our next question comes from Martin Lara at Miranda Global Research. Hi, good morning. Thank you for your call and congratulations for these results. I have one question. Do you think that margins in logistics and technology are sustainable going forward? What is the revenue growth that we should see in this division in the future? Hi, Martin. This is Tonio. Thanks for your question. I mean, margins should be organic margins. This is very important because it has to do with the Solistica deal. Organic margins, if nothing else would have happened, I think that organic margins should be sustainable. Okay? However, with the Solistica deal, the margin profile of the Logistics and Technology division is going to change. Okay? We are going to be able to provide more information once we close on the deal. I mean, the growth profile of the Logistics and Technology division, as Aby said earlier in this call, we have been preparing the company to be able to absorb and integrate the Solistica deal more swiftly. We have slowed down the organic growth of the division because of that. We have been preparing the organization for six to eight months now for that. It's very hard to tell how you should look at organic growth moving forward, especially since we are integrating very shortly Solistica, and that's going to change. What I can tell you is that we estimate that the Logistics and Technology division, on an annualized basis, if you analyze the revenue, is going to represent perhaps 50% or more of consolidated revenues of the company. That's the growth you should be able to look at before we tell you something else about Solistica. I repeat, from an annualized perspective, you should be able to see the Logistics and Technology division contributing 50% or more to the consolidated revenues of the company. Okay. Thank you very much, Tonio. As a reminder, if you would like to ask a question, please press the raise-your-hand button located at the bottom of the screen. Our next question comes from Steve Trent at Citi. Hi, yes. Good afternoon, gentlemen. Thanks very much for taking my question. Sort of a follow-up to the last question. When we think about long-term and Solistica gets done and integrated, how should we think about long-term growth, sort of organic versus inorganic? Are there any targets that you may reiterate in terms of returns on invested capital over the long term? Thank you. Hi, Steve. This is Wolf. How are you? Regarding what we can expect, let's say, in the next future, after what Tonio just mentioned, talking about the Solistica acquisition plus that acquisition integrating in the numbers, we are usually expecting something between the middle teens, let's say, in an organic growth. As of now, and as we mentioned in the previous call, we're just waiting right now to integrate the Solistica acquisition. We're not looking right now for another one at this moment. We were expecting something around the middle teens in an organic basis, something similar than in the previous years. Okay. Appreciate that, Wolf. Thank you. Our next question comes from Carlos Peyrelongue at Bank of America. Carlos, you're on mute. You may unmute. Can you hear me now? Yes. Great. Thank you for taking my question, gentlemen. Just to follow up on some of the questions that have been asked, in terms of the logistics and tech division, can you provide a bit more color as to the different components within this? I understand, obviously, Solistica is one of the most important ones, but just to get a better sense of what are the components of this division. The second, I think Aby mentioned something on this, but in terms of the timing of closing this transaction, we understand that the new government, particularly in approving these types of transactions, the COFECE, etc., takes some time to approve these transactions. Just if you could repeat roughly which quarter you think that you will be able to close the transaction and integrate Solistica. Thank you. Thank you, Carlos. Thanks for your questions. The Logistics and Technology division is integrated by four components. The first one is 3PL, which is warehouse management. The second one is Traxporta, the cargo broker. The third one is last mile, especially for B2B e-commerce clients, such as the largest players. The fourth is intermodal, which is basically combining rail with truck. These components are going to change once we close on the Solistica deal, but 3PL should, depending on the seasonality of the business, account for between 40% and 45% of the revenues of the segment. Traxporta and last mile should be around 30%. Traxporta should be around 20%, and the rest is intermodal. Intermodal is somewhat small yet. These percentages are going to change with the Solistica deal since we expect Solistica to contribute around 50% of more square footage of warehouse, and it has a capacity, as Aby said at the beginning, to double or triple the volume of the cargo broker. Regarding your second question, we expect the Solistica deal to be concluded and closed within the second quarter of 2025. It is very soon. Perfect. Thank you. Thank you so much. Our next question comes from Edson Murguia. You may ask your question. Hi. Good afternoon. Thank you for taking my question. I have just one regarding on the electric vans and the ESG strategy that you are doing it. Do you have a specific target or how many electric vans are you planning to have for the foreseeable quarters or next year? Hi, Edson. Today, as of today, the electric van initiative of Traxión is on a pilot testing and trials. We have been adding some of those vans into the fleet as we integrate more routes to the service. Most important, we are going to perhaps set a target, or we are going to, better said, we are going to set our targets as new technology becomes available for charging stations and infrastructure for electric fleets. As you know. I don't know if you heard my answer. Yes. You want me to repeat? Yeah. Just to wrap up, it's a pilot and it's undergoing, and at some point, you will be analyzing how this pilot is working with the fleet, right? That's right. One big component for the decision is how new technology for charging stations and all the infrastructure you need to properly operate an electric fleet, all that technology and infrastructure becomes available. We're going to make decisions when we get there. Okay. Crystal clear. Thank you so much. As a reminder, if you would like to ask a question, please press the raise-your-hand button located at the bottom of the screen. We will pause once more for any further questions. We have another question from Alejandro Dem ichelis. Please state your question. Please unmute yourself to ask your question. Yes. Sorry. It's me again. Just to follow up, maybe you can give us an indication of how you're seeing your end demand in the different kind of segments, what segment you see being a bit stronger, which segment you're seeing slowing down, given the situation and all of the noise on tariffs. Maybe kind of a bit of a follow-up there, maybe you can kind of indicate also why we have seen such a strong growth in revenue in cargo when your fleet is down a little bit and we're seeing some of the changes there. Hi, Alejandro. I'm going to ask your last question first. This is Tonio. If you take a look, yes, effectively, our kilometer volume came down approximately 2.4 million kilometers in the cargo division. However, you can see an increase in revenue per kilometer. In a nutshell, the explanation is that the growth has been driven by price rather than volume. We are effectively implementing higher prices in our routes and circuits. Okay. Thank you. We have reached the end of our question-and-answer session. If you have any additional inquiries, please feel free to contact the IR team via email. Thank you. I would now like to hand the call back over to Aby for some closing remarks. Thank you. We have been navigating through a rough cycle. Nonetheless, we believe that Mexico is in a privileged position within this environment. I think that it will continue to benefit from this. Traxión is a leading company in the industry. With a robust commercial pipeline, we continue to observe the same growth potential in the market as we saw in the past. However, we will proceed with caution and we will privilege cash flow. Thanks for your attention. Have an excellent week. That concludes today's call. You may now disconnect.