Ultrapar (UGPA3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$ 36.8 billion in 1Q26, up 10% year-over-year, driven by Ipiranga's higher sales and the consolidation of Hidrovias.

• Recurring adjusted EBITDA doubled to R$ 2.32 billion (+96% YoY), mainly from Ipiranga's improved results and Hidrovias' consolidation.

• Net income soared to R$ 914 million, a 152% increase over 1Q25, reflecting stronger operational performance.

• Operating cash flow was R$ 1.1 billion, supported by robust business results despite higher working capital needs.

• Leverage decreased to 1.5x EBITDA LTM, reflecting strong cash generation; adjusted leverage (including supplier draft discounts) remained at 1.7x.

Financial highlights

• Gross profit rose 48% YoY to R$ 3.17 billion, with gross margin at 8.6%.

• Depreciation and amortization increased 43% YoY to R$ 582 million, mainly due to Hidrovias' consolidation.

• Financial expenses rose to R$ 398 million (+121% YoY), driven by higher net debt and increased CDI rates.

• Investments totaled R$ 558 million (+34% YoY), focused on network expansion, technology, and logistics.

Outlook and guidance

• Continued focus on growth, productivity, and value creation, with major expansions completed at Ultracargo.

• Sustained investment in working capital at Ipiranga to ensure fuel supply amid market volatility.

• Ongoing execution of the 2030 Sustainability Plan and further integration of ESG initiatives.