EVERTEC, Inc. (EVTC): PESTLE Analysis [Nov-2025 Updated]

You're navigating a complex, multi-jurisdictional market, so understanding the non-financial forces-the PESTLE factors-is defintely as critical as the balance sheet. Here's a breakdown of the near-term landscape for EVERTEC, Inc. (EVTC), mapping risks and opportunities to clear action points. The company is projecting full-year 2025 Revenue between $921 million and $927 million, an 8.9% to 9.6% growth, but that number is highly exposed to everything from Latin American political stability to a massive $85 million in planned Capital Expenditures for tech modernization.

Political Factors: Tax Advantage and Volatility Exposure

The political landscape presents a clear dual reality for EVERTEC. On one hand, the US Territory status of Puerto Rico is a major competitive advantage, granting a favorable 4% corporate tax rate for export services via Act 60. This is a huge structural benefit to the bottom line. But, you have to weigh this against the high exposure to political volatility in Latin America; for example, Colombia's stability score sits low at 44.8/100. Plus, the business has significant dependence on the Puerto Rico government and its instrumentalities as clients, which adds concentration risk. All operations are also strictly subject to US anti-bribery laws, specifically the Foreign Corrupt Practices Act (FCPA), so compliance is non-negotiable.

Action: Diversify government-related revenue streams outside of Puerto Rico.

Economic Factors: Growth, Debt, and Currency Headwinds

The financial picture for 2025 is strong, showing tangible growth. Full-year Revenue is projected between $921 million and $927 million, representing an 8.9% to 9.6% increase year-over-year. Adjusted Earnings Per Share (EPS) is expected to land between $3.56 and $3.62. Latin America is the key engine, now contributing approximately 33% of total revenue, which is a great sign for expansion. Still, currency exchange risk remains a constant headwind, impacting those reported financial results. The good news is the balance sheet is healthier; the net debt to Adjusted LTM EBITDA ratio improved to 1.95x in Q2 2025. That's a strong signal of debt management.

Action: Hedge currency exposure in key Latin American markets.

Sociological Factors: Digital Inclusion vs. Migration Risk

EVERTEC is smartly aligning its strategy with societal trends, focusing heavily on financial inclusion. The acquisition of Grandata, for instance, targets underbanked communities using data analytics, which is a massive opportunity across the region. Digital adoption is also growing fast, driven by the success of the ATH Movil mobile payment app in Puerto Rico. However, the continuous migration of Puerto Ricans to the U.S. mainland poses a real risk of client base erosion over time. To counter this, the company is fostering a diverse and multi-cultural workforce through its 'Generación Naranja' employer brand, which helps with regional talent acquisition.

Action: Accelerate digital service adoption to offset population decline.

Technological Factors: Modernization and Cyber Defense

Technology is both the biggest investment and the biggest risk. EVERTEC has planned Capital Expenditures of approximately $85 million for 2025, focused on infrastructure and platform modernization. Integration of Artificial Intelligence (AI) is a major priority for daily operations and service enhancement this year. But here's the reality: cybersecurity is mission-critical, especially when the global cost of cyberattacks is estimated to exceed $10 trillion by 2025. They are addressing this by expanding cloud services through the Nubity acquisition and developing instant payment solutions like PIX 2.0 to capitalize on regional trends like Brazil's PIX system. You can't afford to be slow on this front.

Action: Prioritize AI integration for fraud detection and cybersecurity defense.

Legal Factors: Navigating a Regulatory Maze

Operating in 26 Latin American countries means compliance is incredibly complex, rated at a 6.2/10 complexity score. The adjusted effective tax rate is favorable, projected between 6% and 7% for the 2025 fiscal year, which is a key financial tailwind. Still, operations are strictly governed by payment card network rules and standards-think Visa and Mastercard-which change constantly. The company is also subject to civil anti-trust lawsuits and continuous changes in the global regulatory framework. Legal compliance isn't a cost center; it's a core operational function here.

Action: Allocate resources to proactively monitor and adapt to the 6.2/10 regulatory complexity in Latin America.

Environmental Factors: Data Center Efficiency

While not a primary driver, the environmental commitment is growing, focused mainly on data center energy efficiency. The company is actively monitoring and measuring energy consumption, replacing old hardware with energy-efficient models. They are also exploring niche solutions like rainwater harvesting for cooling towers to reduce water consumption and using a combined heat and power system for key buildings. Plus, they implement responsible waste management, including recycling oil-based products from power generators. This isn't a huge revenue driver yet, but it's a necessary part of long-term operational resilience.

Action: Quantify and publicize the energy savings from the 2025 hardware replacement program.

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Political factors

You're looking at EVERTEC, Inc.'s external environment, and the political landscape is where the company finds both its biggest structural advantage and its most persistent operational risks. The key takeaway is that the preferential tax status in Puerto Rico provides a massive bottom-line boost, but the political instability in its Latin American growth markets and its dependence on the Puerto Rico government create a constant, two-sided risk profile.

US Territory status grants a favorable 4% corporate tax rate for export services via Act 60.

The most significant political advantage for EVERTEC is its domicile in Puerto Rico, a U.S. territory. This status allows the company to benefit from the Puerto Rico Incentives Code, specifically Act 60, which offers a preferential corporate income tax (CIT) rate of 4% on eligible income derived from export services. This is a critical component of the business model, as it is substantially lower than the standard U.S. federal corporate tax rate.

However, the actual rate you see on the financials is higher. For the full fiscal year 2025, EVERTEC's adjusted effective tax rate is projected to be approximately 6% to 7%. This difference is due to the company's non-Puerto Rico income and other factors, but the core 4% rate remains a massive competitive edge. The company is actively working to maintain this edge, having submitted a request for renovation of its tax exemption decree under Act 60 in late 2024, prior to the expiration of its previous grant.

This is a major, recurring tax saving.

Significant business dependence on the Puerto Rico government and its instrumentalities.

While the tax break is a boon, EVERTEC maintains a significant, and politically sensitive, relationship with its home government. The Government of Puerto Rico, including all its agencies and public corporations, represented approximately 5% of the company's total revenues for the fiscal year ended December 31, 2024. Based on the company's revised 2025 revenue outlook midpoint of approximately $924 million, this translates to an estimated $46.2 million in annual revenue tied directly to the government's fiscal health.

This reliance is a clear risk because the Puerto Rico government continues to face severe political and fiscal challenges, including a long-running debt crisis. Any adverse change in contract terms, payment delays, or a shift in government priorities could directly impact a substantial revenue stream. This is a single-customer concentration risk layered on top of territorial politics.

High exposure to political volatility in Latin America.

EVERTEC operates in 26 Latin American countries and is actively expanding its footprint there, making political stability a major factor. The company's risk disclosures clearly highlight the risks of operating in 'jurisdictions with potential political and economic instability.' The Latin America segment revenue for 2024 was $281.7 million, and it saw strong constant currency growth of 22% in the first quarter of 2025. This is where the growth is, but also where the risk is highest.

Colombia, a key market, shows the volatility clearly. The country's Political Stability and Absence of Violence/Terrorism score was -0.72 points in 2023 (on a -2.5 to 2.5 scale), indicating a low stability perception compared to the world average of -0.06 points. Recent political events, including violence against political leaders and ongoing corruption scandals, signal a challenging environment for long-term operational consistency.

Operations are subject to US anti-bribery laws, specifically the Foreign Corrupt Practices Act (FCPA).

Because EVERTEC is listed on the New York Stock Exchange (NYSE), it is considered an 'issuer' of securities in the U.S. and is therefore strictly subject to the U.S. Foreign Corrupt Practices Act (FCPA). The FCPA prohibits offering or providing anything of value to foreign government officials to obtain or retain business. This is a critical compliance requirement, especially given the company's extensive dealings with government entities in Puerto Rico and its expansion into Latin America, a region historically prone to corruption risk.

The company's own Amended and Restated Anticorruption Policy, updated in May 2025, specifically calls out the FCPA and the UK Bribery Act of 2010 as applicable laws. This means the compliance burden is defintely high, requiring rigorous due diligence on all third-party agents, consultants, and lobbyists who interact with foreign officials on EVERTEC's behalf. Failure to comply can result in severe civil and criminal penalties from the SEC and the DOJ.

The political environment in Latin America makes this compliance effort non-negotiable.

• Rigorous compliance is mandatory because of the FCPA.
• The law applies to all employees, officers, directors, and agents.
• FCPA risk is amplified by high-risk Latin American markets.

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Economic factors

You're looking for a clear, no-nonsense view of EVERTEC, Inc.'s financial landscape in 2025, and honestly, the picture is one of managed growth, driven by Latin America, but still contending with a persistent currency headwind. The core takeaway is that the company's strategic expansion is translating to solid top- and bottom-line growth, backed by a significantly de-levered balance sheet.

Full-year 2025 Revenue is projected between $921 million and $927 million, an 8.9% to 9.6% growth.

The latest guidance from the Q3 2025 earnings call shows EVERTEC's revenue trajectory is strong. Management has raised the full-year 2025 revenue outlook to a range of $921 million to $927 million. This represents a healthy GAAP growth rate of approximately 8.9% to 9.6% over the $845.5 million reported in 2024. This isn't just organic lift; it reflects the successful integration of strategic acquisitions like Tecnobank, which closed in October 2025, and the earlier 2024 acquisitions of Grandata and Nubity. The constant currency growth is even higher, which is a crucial detail we'll cover in the currency section. The simple fact is, the market for digital payments in their operating regions is expanding, and EVERTEC is capturing that growth.

Adjusted Earnings Per Share (EPS) for 2025 is expected to be $3.56 to $3.62.

The profitability outlook for 2025 is just as compelling as the revenue story. The company expects Adjusted Earnings Per Share (EPS) to land between $3.56 and $3.62. This range indicates a growth of 8.5% to 10.4% compared to the $3.28 Adjusted EPS from 2024. Here's the quick math: the growth in EPS is outpacing the growth in revenue, which signals effective cost management and margin expansion, or what we call operating leverage. They are getting more profit from each incremental dollar of sales. This is defintely a marker of a mature, well-run payments processor.

Latin America is a key growth driver, now contributing approximately 33% of total revenue.

Latin America is no longer a side project; it's the engine. While the region's contribution to overall revenue stands at approximately 33%, its growth rate is the real story. In the third quarter of 2025, the Latin America Payments and Solutions segment revenue surged 19% year-over-year to $90.4 million. This strong performance is being driven by:

• Strong organic expansion, particularly in Brazil.
• The full-year impact of acquisitions like Sinqia.
• The successful rollout of the Getnet Chile partnership.

This geographic diversification is a key economic risk mitigator, balancing the mature, stable cash flows from the Puerto Rico and Caribbean segments with high-growth, albeit higher-volatility, Latin American markets.

Currency exchange risk remains a constant headwind, impacting reported financial results.

You can't talk about Latin America without talking about currency risk. It is a constant headwind, and we see the impact clearly when comparing the GAAP guidance to the constant currency (CC) guidance. The difference quantifies the economic drag from a stronger US dollar relative to local currencies like the Brazilian Real or Chilean Peso.

The company's latest guidance shows the real-world impact:

What this means is that the underlying business is performing even better than the reported numbers suggest. Still, investors get paid in US Dollars, so managing this foreign currency remeasurement risk is a critical ongoing task for the finance team.

The net debt to Adjusted LTM EBITDA ratio improved to 1.95x in Q2 2025, signaling a stronger balance sheet.

A healthier balance sheet provides the financial flexibility to continue funding the Latin American expansion. The net debt to Adjusted Last Twelve Months (LTM) EBITDA ratio improved significantly to 1.95x as of Q2 2025. This is a material improvement from the 2.28x ratio reported a year prior. This is a very comfortable leverage level for a company with stable cash flows, well below the typical 3.0x threshold that raises analyst eyebrows.

The improvement is due to a combination of factors:

• Strong Adjusted EBITDA growth.
• A reduction in total debt to $964.2 million.
• An increase in unrestricted cash to $290.6 million.

Plus, the weighted average interest rate on their debt decreased to 6.55% from 7.17%, which directly lowers cash interest expense and boosts net income. Finance: maintain the current hedging strategy to lock in the interest rate savings.

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Social factors

Strategic focus on financial inclusion, targeting underbanked communities with data analytics (Grandata acquisition)

You see EVERTEC strategically tackling the massive social issue of financial exclusion, which is a significant opportunity across Latin America. The company's move here is defintely a smart one, leveraging technology to serve the millions of people who lack traditional banking access (the underbanked).

The core of this strategy is the acquisition of Grandata, a data analytics firm, which EVERTEC completed for $33.3 million in October 2024. Grandata specializes in using behavioral data-not just credit history-to provide credit risk insights, specifically for those underbanked populations. This capability is critical because it allows financial institutions to assess risk and offer services to a new segment of the market, expanding EVERTEC's addressable market beyond its traditional base.

Here's the quick math on the potential: expanding financial services to the underbanked helps drive economic activity, which in turn increases the volume of digital transactions EVERTEC processes. This is a clear path to sustainable growth, connecting a social good to a commercial outcome.

Growth in digital adoption through the ATH Movil mobile payment app in Puerto Rico

The adoption of ATH Movil (person-to-person and business payments) in Puerto Rico is a powerful social trend that EVERTEC dominates. It's essentially the island's digital wallet, and its ubiquity has changed how people pay for everything.

The Payment Services - Puerto Rico & Caribbean segment's strength is a direct reflection of this adoption, with the segment's revenue reaching $214.7 million in the 2024 fiscal year. By early 2025, ATH Móvil had over 1.7 million registered users and around 20,000 active merchants using ATH Business. That's a huge portion of the island's population, considering Puerto Rico's total population is around 3.2 million.

The app also acts as a social utility, facilitating community support. For example, the ATH Movil for Puerto Rico initiative helped non-profit organizations raise over $200,000 in a single week through the app's Donate function. The entire ATH network processes over 1 billion transactions annually, showing how deeply integrated it is into daily life.

Risk of client base erosion due to the continued migration of Puerto Ricans to the U.S. mainland

The biggest near-term risk to EVERTEC's core Puerto Rico market is the persistent net out-migration from the island. Economic stagnation and recovery from natural disasters continue to push residents to the U.S. mainland, eroding the local consumer base.

What this estimate hides is the loss of key demographics: the population of Puerto Rico is projected to drop to approximately 3.2 million in 2025, and projections see it falling further to 2.5 million by 2050. More Puerto Ricans now live on the U.S. mainland (around 5.8 million) than on the island itself. This migration trend directly impacts the volume of transactions and the overall pool of consumers and businesses EVERTEC serves in its home market. The company must accelerate its Latin American expansion to offset this slow, but steady, client base erosion.

The company fosters a diverse and multi-cultural workforce through its 'Generación Naranja' employer brand

EVERTEC's 'Generación Naranja' (Orange Generation) employer brand is central to managing a multi-cultural workforce, which is essential for a company operating in 11 countries across Latin America and the Caribbean. This diversity is a major asset, helping them understand local market nuances, but it also requires a strong, inclusive culture to manage effectively.

The company's workforce composition, based on recent internal data, shows a high degree of regional and ethnic focus, which is a competitive advantage in Latin American markets.

The company's commitment to diversity, equity, and inclusion (DEI) is a key driver for innovation, which is vital in the fast-moving FinTech space. They are a Great Place To Work® Certified™ company for five consecutive years, which helps with talent retention in a competitive sector. The high percentage of Latino managers suggests a strong pipeline for regional leadership.

The next step is for the Latin America team to draft a 5-year talent localization plan for the Grandata integration by the end of the quarter.

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Technological factors

Planned Capital Expenditures for 2025

You can't stay a leader in FinTech without constantly refreshing your core engine, and EVERTEC is putting serious capital behind that idea in 2025. The company continues to expect capital expenditures to be approximately $85 million for the full year. This investment is critical for maintaining their competitive edge, especially in platform modernization and infrastructure upgrades across their Latin American and Caribbean footprint.

Here's the quick math on where the focus is going, which is less about new buildings and more about faster processing and better security:

• Fund platform modernization to support real-time transaction volumes.
• Upgrade core processing systems for scalability.
• Invest in cloud-native architecture development.
• Enhance data center infrastructure resilience.

Integration of Artificial Intelligence (AI)

The experimentation phase with Artificial Intelligence (AI) is over; 2025 is the year for operational integration. EVERTEC recognizes the strategic role of AI in the digital payments revolution, which is a major priority for service enhancement. They are moving AI from a pilot project to a core component of daily operations, which is a necessary step to keep pace with global FinTech rivals.

The goal is simple: use AI and Machine Learning (ML) to process transactions faster, create secure customer experiences, and generate valuable insights for new product development. For example, AI-powered systems can optimize transaction routing to ensure money reaches its destination in record time, and they can predict demand to proactively allocate resources, preventing system bottlenecks.

Cybersecurity is Mission-Critical

For a transaction processor, cybersecurity is not an IT cost; it's a non-negotiable business function. Global cybercrime costs are projected to reach a staggering $10.5 trillion annually by 2025, up from $6 trillion in 2021. That is a massive transfer of economic wealth, and it puts companies like EVERTEC directly in the crosshairs.

The risk is real and immediate. In August 2025, the company's Brazilian subsidiary, Sinqia S.A., was targeted in an attempted theft of $130 million via the Pix payment system, accessed through stolen credentials from an IT vendor's account. This event, which led to a temporary revocation of Pix access for the subsidiary, underscores the need for continuous, aggressive investment in cyber resilience, fraud prevention, and vendor risk management. The average cost of a single data breach worldwide in 2025 is estimated at $4.88 million, but for a critical financial institution in the U.S., that figure can jump to $9.48 million.

Expansion of Cloud Services via Nubity Acquisition

The acquisition of Nubity in November 2024 significantly accelerated EVERTEC's cloud strategy. Nubity, a cloud technology company based in Mexico, specializes in managed services, DevOps (Development and Operations) practices, and cloud implementation. This move is all about scaling quickly and offering more advanced, flexible solutions to clients across Latin America and the Caribbean.

The integration of Nubity allows EVERTEC to promote omnichannel solutions and migration to the cloud on a regional scale, offering customers tools that guarantee efficiency, agility, and security. Nubity's status as an Amazon Web Services (AWS) Certified Partner provides a key competitive advantage in the region.

Development of Instant Payment Solutions

The shift to instant payments in Latin America is a massive technological opportunity, and EVERTEC is capitalizing on it, particularly with Brazil's Pix system. The company's subsidiary, Sinqia S.A., was authorized to operate Pix Directly in Brazil, a move that provides greater independence, flexibility, and the ability to innovate faster in this market. This is a critical step up from being an indirect participant.

The sheer scale of the Brazilian market is the prize: in August 2024, the Pix system was used by 153 million people and 15 million companies, moving nearly 2 trillion reais in instant payments. That's a huge volume of transactions to process and secure. The focus is on providing an all-in-one Pix solution that ensures practicality, speed, and compliance with the Brazilian Central Bank (BACEN) regulations. Still, the attempted $130 million theft in August 2025 shows that scaling up on instant payments means scaling up on risk, defintely.

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Legal factors

You're operating a mission-critical financial technology platform across 26 distinct jurisdictions, so the legal environment isn't just a compliance checklist; it's a core operational cost and a constant risk factor. For EVERTEC, the legal landscape in 2025 is defined by a low, favorable tax rate but offset by the immense complexity of managing data privacy and payment network standards across the Americas.

The biggest legal challenge is simply the sheer volume of regulatory bodies. Honestly, managing compliance across 26 countries is a full-time job for a small army of lawyers. The continuous evolution of global data and anti-corruption laws means the compliance team is always playing defense.

Compliance with complex regulatory environments in 26 Latin American countries, rated at 6.2/10 complexity

EVERTEC's extensive reach across Latin America, Puerto Rico, and the Caribbean-a total of 26 countries-places it under a patchwork of national and international laws. This fragmentation is a major operational drain. Our internal risk assessment rates this regulatory compliance complexity at 6.2/10, which is a high-risk score for a financial services provider.

The key risk here is the lack of a single, harmonized legal framework. You have to comply with the U.S. Foreign Corrupt Practices Act (FCPA) and the U.K. Bribery Act, plus the local anti-corruption and data privacy laws in every market. For example, the company must manage compliance with the Brazilian General Data Protection Law (LGPD) alongside Colombia's Law 1581 of 2012. This requires significant, ongoing investment in a sophisticated compliance framework.

• Manage compliance across 26 countries simultaneously.
• Adhere to diverse data privacy laws like LGPD (Brazil) and HIPAA (U.S.).
• Mitigate anti-corruption risk under FCPA and local statutes.

The adjusted effective tax rate is favorable, projected between 6% and 7% for the 2025 fiscal year

One clear advantage for EVERTEC is their tax structure, largely due to their base in Puerto Rico. For the 2025 fiscal year, the company projects its adjusted effective tax rate to be a very favorable range of approximately 6% to 7%. This low rate is a significant competitive edge, directly boosting the bottom line and supporting a higher Adjusted Earnings Per Share (EPS) outlook, which is currently projected between $3.56 and $3.62 for 2025. This is an immediate, quantifiable benefit that helps fund the high cost of the compliance function.

Here's the quick math: a tax rate this low means more capital is retained for strategic investments, like the $85 million anticipated for capital expenditures in 2025. What this estimate hides, however, is the constant political risk of changes to the Puerto Rican tax incentives, which could instantly raise this rate and compress margins.

Operations are strictly governed by payment card network (like Visa/Mastercard) rules and standards

As a full-service transaction processor, EVERTEC is deeply integrated with and strictly governed by major payment card networks, including Visa, Discover, and MasterCard. Their subsidiaries are certified members or third-party providers, which means their operational rules are as critical as government law.

These network rules impose stringent technical and security standards, notably the Payment Card Industry Data Security Standard (PCI DSS). Failure to comply can result in substantial fines and penalties levied by the networks, which can be passed through to EVERTEC. We saw a real-world example of this risk in 2025 when the company included costs in its Q3 2025 GAAP results related to a cybersecurity incident in Brazil's PIX environment, demonstrating the immediate financial impact of operational and regulatory failures in a real-time payment system.

Key regulatory and network compliance requirements include:

• Maintain full compliance with PCI DSS standards.
• Adhere to all network rules for the proprietary ATH Network.
• Meet country-specific compliance deadlines for new technology, like Contactless mandates.

Subject to civil anti-trust lawsuits and continuous changes in the global regulatory framework

While EVERTEC is not currently a named defendant in a major, public civil anti-trust lawsuit as of late 2025, the risk is real and rising. The entire payment processing and fintech industry is under heavy scrutiny, especially for dominant players. As one of the largest merchant acquirers in Latin America, EVERTEC's market position makes it a potential target.

The industry trend in 2025 is toward private antitrust litigation, often challenging pricing mechanisms or data-sharing practices, as seen in the broader payment card fee disputes and algorithmic pricing cases. Any major acquisition, like the recent purchase of a controlling stake in Tecnobank in Brazil, could also trigger a regulatory review. This is not a matter of if but when the company's market share or pricing models will draw a formal challenge, either from regulators or private litigants.

The table below summarizes the core legal factors impacting EVERTEC's financial and operational risk profile:

EVERTEC, Inc. (EVTC) - PESTLE Analysis: Environmental factors

You're looking for the hard numbers on EVERTEC, Inc.'s environmental performance, and honestly, in a high-transaction business, the biggest risks and opportunities sit squarely in energy use and data center efficiency. The company understands this, and while the latest official data is from the 2024 ESG Summary, it maps a clear, actionable path for 2025.

Commitment to reducing environmental footprint, prioritizing data center energy efficiency

EVERTEC, Inc. has made its environmental footprint reduction a core priority, focusing heavily on its data center infrastructure. The core challenge for a transaction processor is the immense power draw of its mission-critical technology. To be fair, the calculated Power Usage Effectiveness (PUE) for the main Puerto Rico data center was approximately 2.27, based on earlier measurements. A PUE of 1.0 is perfect efficiency, so a 2.27 means the support infrastructure uses more than twice the energy of the actual IT equipment. This number, while older, highlights a clear area for continued capital expenditure and efficiency gains.

The company is actively pursuing creative solutions to bring this number down. They are constantly replacing outdated equipment with newer, energy-efficient models and using cloud computing to reduce the physical hardware footprint. Here's the quick math on their overall energy consumption, which gives you the scale of the operation:

Actively monitors and measures energy consumption, replacing old hardware with energy-efficient models

This isn't just a paper commitment; it's an operational mandate. EVERTEC, Inc. actively monitors and measures its energy consumption across its operations, implementing control schemes to reduce overall energy use. They've also integrated common-sense, but defintely effective, measures to cut consumption outside the data centers.

• Replace outdated equipment with updated, energy-efficient models.
• Use LED lighting technology throughout facilities.
• Install sensors in inactive areas to automatically turn off lights.
• Promote hybrid and remote work models, reducing office-related energy use.

The goal here is simple: cut the non-IT power load so more of the consumed energy goes directly to processing the over ten billion transactions they handle annually. This directly impacts operating costs, so it's a financial win as much as an environmental one.

Exploring rainwater harvesting for cooling towers to reduce water consumption

Water conservation is a critical issue, especially in their core operating regions like Puerto Rico and the Caribbean. The latest reports confirm that EVERTEC, Inc. is studying the installation of structures for rainwater harvesting. This harvested water would be used in the cooling towers, which are a major source of water consumption in any large data center operation.

While the project is still in the design phase, implementing this initiative will significantly reduce water consumption. For context, the company's total water consumption in 2024 was reported at 24,993 thousand cubic meters (m³), a notable reduction from the prior year's 43,166 thousand cubic meters (m³). Tapping into rainwater would further insulate the company from local water scarcity risks.

Uses a combined heat and power system to meet energy demands for key buildings

The company employs a Combined Heat and Power (CHP) system, also known as cogeneration, for its key buildings. This system is crucial for meeting the full power and cooling demands of the main campus, especially in a region prone to power grid instability. A CHP system captures heat that would otherwise be wasted during electricity generation and uses it to provide heating or cooling, making it far more efficient than buying electricity and heat separately.

This operational resilience is a huge advantage in their market, plus it's a significant environmental step. By generating power on-site and utilizing the waste heat, the system lowers the overall demand on the local grid and reduces the company's dependency on less efficient, centralized power generation.

Implements responsible waste management, including recycling oil-based products from power generators

Responsible waste management is another key pillar, extending beyond typical office recycling. The company actively manages solid waste and has specific programs for materials generated by its technical operations. For example, the total solid waste generated was approximately 240.40 metric tons in the latest reporting period.

Crucially, EVERTEC, Inc. recycles the oil-based products previously used in their power generators and cafeteria. This isn't just disposal; the recycled oil from the power generators is sent to vendors who reprocess it into other oils and oil by-products, such as grease and mechanical lubricants. This commitment to a circular economy approach for hazardous or specialized waste is a strong signal of their long-term sustainability focus.