Kepler Weber (KEPL3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$318.1 million in Q1 2026, down 10.9% year-over-year, mainly due to lower volume in the Farms segment, partially offset by strong growth in International Business (+47.1%) and Agribusiness (+4.2%).

• EBITDA was R$33.7 million with a margin of 10.6%, reflecting lower operating leverage but disciplined cost management.

• Net income totaled R$17.1 million, with a net margin of 5.4%, down from 7.2% in Q1 2025, marking the 27th consecutive profitable quarter.

• Cash position strengthened to R$375.8 million, with net cash of R$56.6 million, highlighting financial flexibility.

• Diversification, international expansion, and digital integration drove resilience amid challenging agribusiness conditions.

Financial highlights

• Net revenue declined 10.9% year-over-year to R$318.1 million, with gross profit and margin also down.

• EBITDA was R$33.7 million (-36.4% YoY), EBITDA margin 10.6% (-4.2 p.p. YoY).

• Net income was R$17.1 million (-33.0% YoY), net margin 5.4% (-1.8 p.p. YoY).

• Operating cash flow was R$28.2 million; CAPEX for Q1 2026 was R$15.2 million, focused on IT and modernization.

• Strong cash generation, with gross cash of R$375.8 million and net cash of R$56.6 million as of March 2026.

Outlook and guidance

• Farm segment expected to underperform 2025, with continued double-digit contraction due to restrictive credit and low margins.

• Agribusiness and International Business segments projected to achieve double-digit growth or remain stable at high levels in Q2 2026.

• Replacement and services expected to rebound with double-digit growth in Q2 2026.

• Order backlog for 2026 and March 2026 seasons grew by single digits compared to prior year, with a shift toward larger Agribusiness projects.

• Continued focus on operational discipline, capital allocation, and geographic diversification to strengthen resilience.