Vibra Energia (VBBR3) Q1 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$2.025 billion in 1Q25, up as much as 43.6% year-over-year, driven by operational efficiency, disciplined expense control, and Comerc integration.

• Operating cash flow totaled R$0.9 billion, supporting robust shareholder returns, including R$350 million in Interest on Equity and a 40% dividend payout policy.

• Adjusted net income rose up to 44% year-over-year to R$1.009 billion, with strong cash generation and a solid capital structure post-Comerc acquisition.

• Lubricants segment grew 13% year-over-year, with higher margins, 147+ new Lubrax+ franchises, and 18% YoY growth in synthetic product sales.

• Renewables segment delivered solid growth, with net revenue of R$1.2 billion and EBITDA @stake of R$268 million, up 15.1% year-over-year.

Financial highlights

• Adjusted EBITDA margin reached R$215/m³, up 31% year-over-year; ROIC was 15.4%.

• Diesel, gasoline, and ethanol volumes grew 1% year-over-year; single-phase ethanol launched in May 2025.

• Net debt/adjusted EBITDA was 1.8x (2.7x excluding extraordinary items), with net debt at R$20.5 billion.

• Average debt cost reduced to CDI+0.85%, with average term extended to 4.6 years.

• Adjusted net revenue was R$45.036 billion, up 13.2% year-over-year.

Outlook and guidance

• EBITDA @stake guidance for Comerc/Renewables reaffirmed at R$1.3 billion for 2025, with further OPEX efficiency and synergy capture expected.

• Management expects to break even in free cash flow with Comerc by end of 2025 and generate positive free cash flow in 2026.

• Anticipates incremental margin growth through cost dilution and higher volumes, with seasonal effects favoring H2.

• Implementation of the single-phase PIS/COFINS system on ethanol from May 2025 is expected to improve market balance and competitiveness.