Hidrovias do Brasil (HBSA3) Q1 2026 earnings summary

Executive summary

• Q1 2026 faced significant operational and market challenges, including truck reception issues and access difficulties in the North due to rainfall and infrastructure works, while Santos saw partial recovery.

• Paraguay volumes remained stable despite lower navigation draft, while Brazil maintained volumes in the South through increased trips with smaller convoys and a dredging program.

• Simultaneous handling of two products in the North led to higher costs and operational challenges, but key lessons were learned for future operations.

• Operational discipline and efficiency were prioritized, preserving performance amid significant challenges.

• An investment plan of up to R$270 million for 2026 was announced, with R$37 million invested in Q1 2026.

Financial highlights

• Net operating revenue for Q1 2026 was R$445 million, down 20% year-over-year and 13% sequentially, mainly due to lower volumes and the sale of the Coastal Navigation operation.

• Recurring Adjusted EBITDA was R$182 million, a 29% decrease year-over-year but up 14% from 4Q25, with a margin of 41–43%.

• Net loss totaled R$34 million, compared to a loss of R$2 million in 1Q25 and R$280 million in 4Q25, impacted by higher financial expenses and operational challenges.

• Cash flow from operating activities was -R$25 million, mainly due to timing effects of customer receipts.

• Investments in Q1 2026 totaled R$37 million, down 68% year-over-year.

Outlook and guidance

• Navigability conditions in the North are expected to remain normalized in Q2 2026, with a favorable cargo mix including more iron ore.

• The completion of infrastructure works at Miritituba and Transamazônica is expected to resolve access bottlenecks before the next harvest.

• CapEx guidance for the year is R$270 million, with investments postponed in Q1 but expected to resume, following a non-linear curve similar to last year.