Companhia Brasileira de Distribuicao (PCAR3) Q1 2026 earnings summary

Executive summary

• Filed and negotiated an out-of-court/extrajudicial recovery plan to restructure BRL 4.6 billion in unsecured non-operational debt, with BRL 2.3 billion due in 2026, targeting significant debt reduction and maturity extension.

• Secured support from over 57% of eligible creditors, exceeding the legal minimum for court approval.

• Management consolidation with experienced leadership and a board representing 75% of the shareholder base.

• Maintained operational continuity and customer experience during restructuring, with a focus on operational efficiency, cost reduction, and cash generation.

• Prioritized financial reorganization and disciplined capital allocation.

Financial highlights

• Gross margin expanded to 30.4%, up 2.9 percentage points year-over-year, aided by sales mix, tax credits, and ICMS-ST regime changes.

• Adjusted EBITDA margin rose to 10.5%, up 1.9 p.p. year-over-year.

• Operating free cash flow after CapEx reached BRL 522 million, up 65.2% over the prior period.

• Adjusted net loss from continued operations was BRL (333) million; reported net loss was BRL (1,347) million, impacted by BRL (1,014) million in non-recurring, non-cash effects.

• CapEx for 1Q26 was BRL 87 million, a 55% reduction year-over-year.

Outlook and guidance

• CapEx guidance for 2026 set between BRL 300 million and BRL 350 million.

• Efficiency plan aims to capture at least BRL 415 million in cost and expense reductions in 2026; BRL 99 million captured in 1Q26.

• No new store openings planned for upcoming quarters.

• Restructuring plan expected to increase average debt maturity from 2.1 to 6.4 years and reduce average cost of debt to CDI + 0.5% per year.

• Net financial debt could fall to BRL 822 million, a 74.3% reduction from Q1 2026 pro forma; pro forma leverage projected at 0.9x, down from 3.6x.