Ferreycorp (FERREYC1) investor relations material

Executive summary

• Consolidated sales in Q2 2026 reached US$592 million (S/2.04 billion), up 18% in USD and 11% in local currency year-over-year, driven by strong demand for Caterpillar machinery and allied brands across mining, construction, and infrastructure sectors.

• Net profit for Q2 2026 was S/166 million, a 36% increase year-over-year; adjusted net profit rose 46% to S/143 million, excluding FX and one-time items.

• Prime product sales surged, reaching up to 49% of the sales mix, while aftermarket services and spare parts remained the largest contributor at 49%.

• Operational efficiency initiatives led to a 6.6% reduction in SG&A expenses year-over-year, improving the SGA to sales ratio to 14.2%.

• A one-off recovery at the Chilean (Trex) subsidiary contributed S/25 million to net profit and S/34 million to operating profit.

Financial highlights

• Operating profit rose 30% year-over-year to S/194 million; adjusted operating profit up 20% to S/200 million.

• EBITDA grew 18% to S/266 million; adjusted EBITDA up 12% to S/272 million.

• Gross margin was 23.4% (down from 24.7%); operating margin expanded to 11.2% (from 8.1%); EBITDA margin reached 14.7%.

• Net financial expenses increased to S/25 million due to higher average debt, offset by lower interest rates.

• Free cash flow improved to S/74 million in Q2 2026, supported by strong EBITDA and working capital management.

Outlook and guidance

• Top-line growth guidance revised upward to low double digits for the year, from previous low single digits.

• Net income expected to remain stable year-over-year, with a shift in sales mix toward large equipment impacting gross margin but supporting long-term aftermarket revenue.

• Optimism about continued business confidence and investment under the new government, with favorable macroeconomic and sector conditions.

• Inventory buildup includes mining trucks committed for future delivery, supporting expected revenue growth.

• Potential $30–33 million sales expansion in construction equipment due to El Niño-related government demand.