Fras-le (FRAS3) investor relations material

Executive summary

• Q3 net revenue was R$1,383.5M, down 1.9% YoY and flat QoQ; constant-currency revenue would have risen 0.3%.

• Gross margin expanded 1.0 pp to 35.0%; adjusted EBITDA was R$257.6M, down 5.3%, with an 18.6% margin.

• Softer Brazilian aftermarket demand, Mexican powertrain weakness and currency translation pressured results; foreign-market growth, pricing and productivity supported resilience.

Financial highlights

• Q3 gross profit was R$484.2M, up 1.1% YoY; operating profit was R$186.5M, down 13.5%, and net profit was R$100.7M, down 5.2%.

• Reported EBITDA was R$250.4M, down 8.4%, with an 18.1% margin; adjusted EBITDA margin was 18.6% excluding R$7.2M of Dacomsa restructuring costs.

• 9M revenue was R$4,015.5M, down 1.9%; adjusted EBITDA was R$751.7M, down 2.1%, and net profit rose 4.7% to R$232.8M.

• Q3 gross margin was 35.0%; excluding R$6.8M of prior-period COGS credits, it was 34.5%, up 0.5 pp YoY.

Outlook and guidance

• FY26 guidance: revenue R$5.2B–R$5.5B, external-market revenue US$540M–US$570M, adjusted EBITDA margin 17.5%–20.0%, and organic investment R$170M–R$210M.

• 9M results—R$4.0B revenue, US$422.9M external-market revenue, 18.7% adjusted EBITDA margin and R$93.1M organic investment—were within annual guidance ranges.

• Priorities include Dacomsa synergy capture, operating efficiency and business-platform development; macroeconomic uncertainty remains a constraint.

• Q4 outlook was moderately positive, with November expected to improve, December seasonally disrupted and domestic inventory normalization anticipated by March 2027.