Ultrapar (UGPA3) Q4 2025 earnings summary

Executive summary

• Achieved record recurring adjusted EBITDA for a fourth quarter and record operating cash flow of R$5.5 billion in 2025, driven by disciplined execution, strategic focus, and lower working capital needs.

• Distributed R$1.4 billion in dividends for 2025, with a yield of 7%, and maintained a comfortable leverage ratio of 1.7x after anticipated dividend payments.

• Advanced regulatory and institutional agendas, including approval of persistent debtor and single-phase taxation for naphtha, "Gás do Povo", and measures to combat sector irregularities.

• Completed key operational expansions and acquisitions, including Ultracargo's Rondonópolis base, a 37.5% stake in Virtu/Virtual GNL, and SAP migration.

• Net revenues reached R$142.5 billion in 2025, up 7% year-over-year, with net income of R$2.5 billion, demonstrating portfolio resilience.

Financial highlights

• Recurring adjusted EBITDA for 4Q25 was R$1.75 billion (+36% vs 4Q24); full-year recurring adjusted EBITDA was R$6.18 billion (+15% vs 2024), driven by Ipiranga, Ultragaz, and Hidrovias consolidation.

• Net income for 2025 was R$2.54 billion, up 1% year-over-year; 4Q25 net income was R$256 million, impacted by non-recurring items.

• Operating cash flow reached a record R$5.5 billion in 2025 (+46% vs 2024), mainly from higher operating results, Hidrovias consolidation, and lower working capital needs.

• CapEx reached R$2.54 billion in 2025, up 15% year-over-year, driven by Ipiranga and Hidrovias investments.

• Gross margin for 2025 was 6.6%; operating margin 3.4%; recurring adjusted EBITDA margin 4.3%.

Outlook and guidance

• Announced an organic investment plan of up to R$2.6 billion for 2026, with 42% allocated to expansion and the rest to maintenance, efficiency, and safety.

• 2026 investments to prioritize branding, logistics, new energies, and productivity improvements.

• Company prepared to navigate a challenging global environment in 2026, emphasizing operational efficiency, financial discipline, and sustainable growth.

• Ultragaz anticipates stable performance and similar EBITDA in Q1 2026 as in Q1 2025.

• Ultracargo expects gradual demand recovery and higher Q1 2026 volume and recurring EBITDA versus Q4 2025.