GPS Participações e Empreendimentos S.A. (GGPS3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$4,484 million in 1Q26, up 9% year-over-year, with 7% organic growth and contributions from recent acquisitions and 2024 acquisition cohorts.

• Adjusted EBITDA ex-IFRS16 rose 9% to R$437 million, with a margin of 9.7%.

• Adjusted net profit was R$158 million, down 12% year-over-year, mainly due to higher financial expenses, non-cash provisions, and contract implementation costs, with a net margin of 3.5%.

• Over 185,000 employees served 4,713 customers nationwide, maintaining a diversified client base and strong presence in the industrial sector.

• Robust M&A activity with 26 companies acquired since IPO and a strong pipeline of potential deals.

Financial highlights

• Net revenue increased 9% year-over-year to R$4,484 million, with 7% organic and 2% inorganic growth from three acquisitions in 2025.

• Adjusted EBITDA ex-IFRS16 margin was 9.7%, slightly below 1Q25, impacted by food cost inflation and contract implementation costs.

• Adjusted net profit margin was 3.5%, 0.9 p.p. lower than 1Q25, impacted by higher debt costs and monetary updates on contingencies.

• Operating cash flow was 96% of adjusted EBITDA, with significant cash outflows for interest, financing, and investments.

• Gross profit for 1Q26 was R$670 million, up from R$610 million in 1Q25.

Outlook and guidance

• Margin pressure expected to persist into Q2, with improvement anticipated in the second half of the year.

• Management expects 2026 to be challenging but remains focused on growth through balanced risk management and continued investment in employee retention and operational efficiency.

• GRSA margin expected to gradually converge with group average as integration and efficiency initiatives mature.

• Labor cost pressures are moderating, with further normalization expected but not to prior-year lows.

• M&A pipeline remains robust, with a focus on disciplined pricing amid high interest rates.