Yduqs Participações (YDUQ3) Q1 2026 earnings summary

Executive summary

• Achieved record first-quarter free cash flow to equity (FCFE) of R$276M, up 10% year-over-year, with a 12-month FCFE yield of 20%.

• Premium verticals Ibmec and IDOMED contributed 49% of EBITDA, reflecting high-margin, high-growth performance.

• Adjusted net income rose 29% year-over-year, excluding the impact of lower NOR DIS.

• Maintained robust shareholder returns through dividends and share buybacks, including R$150M in dividends and R$39M in buybacks.

• Launched AI-driven operational platforms, including a partnership with Google Gemini, and expanded ESG initiatives.

Financial highlights

• Net revenue increased 5% year-over-year to R$1,568M in 1Q26; would have been 5% growth excluding a R$59M DIS revenue decline.

• Adjusted EBITDA grew 7% to R$552M, with margin up 0.6 p.p.; adjusted EBITDA margin at 33.4% (down 1.2 p.p. year-over-year).

• Earnings per share reached R$0.59, up from R$0.57 in 1Q25; 2026 EPS guidance between R$1.4 and R$2.0.

• Capex totaled R$113.6M (7.5% of net revenue), with 75% allocated to digital transformation and IT.

• Leverage ratio reduced to 1.53x, continuing a downward trend.

Outlook and guidance

• 2026 FCFE guidance set between R$520M and R$620M; 2027–2030 EPS expected between R$2.0 and R$3.5.

• Focus remains on cash generation, portfolio diversification, and disciplined capital allocation.