Ultrapar (UGPA3) Q3 2025 earnings summary

Executive summary

• Strong operational cash generation across all business units in Q3 2025, totaling R$2.1 billion, with record results at Hidrovias and support for growth and strategic initiatives.

• Extraordinary tax credits of R$238 million at Ipiranga contributed to results.

• Progress in combating irregularities in the fuel sector, highlighted by regulatory enforcement and the Carbono Oculto Operation.

• Completion of key strategic transactions, including the sale of Hidrovias' cabotage operation and acquisition of a stake in Virtu Participações (LNG logistics).

• Net revenue reached R$37.1 billion in 3Q25, up 5% year-over-year, driven by Ipiranga, Ultragaz, and Hidrovias.

Financial highlights

• Adjusted EBITDA reached R$1.95 billion, up 27% year-over-year, including R$185 million in extraordinary tax credits at Ipiranga.

• Recurring adjusted EBITDA was R$1.78 billion, an 18% increase year-over-year, driven by Hidrovias and Ultragaz.

• Net income for the quarter was R$772 million, up 11% year-over-year, supported by higher operating results and tax credits.

• CapEx totaled R$780 million, reflecting investments in Ipiranga, Hidrovias, and technology.

• Operating cash generation was R$2.1 billion, nearly triple the prior year period.

Outlook and guidance

• Expectation of continued market recovery in Q4, with volume growth and profitability similar to Q3 for Ipiranga.

• Strategic focus on growth, operational efficiency, and portfolio optimization, including further investments and leverage reduction.

• UltraGas and UltraCargo anticipate gradual volume and EBITDA recovery in Q4, benefiting from recent capacity expansions.

• Focus on stricter legislation and enforcement to combat crime and illegal practices in the fuel sector.