Schulz (SHUL4) investor relations material

Executive summary

• Q3 gross revenue rose 3.4% YoY to R$645.4m, led by export growth; 9M gross revenue fell 4.3% to R$1.787bn as domestic demand weakened.

• Q3 consolidated net income was R$54.0m, down 21% YoY; 9M net income fell 21% to R$170.3m, while EBITDA was R$81.8m in Q3 and R$230.5m for 9M.

• Net cash reached R$168m at September-end; gross debt declined 8% from year-end 2025, alongside R$62m of 9M investments and R$92.3m of shareholder payments.

Financial highlights

• Consolidated net revenue increased 5% YoY to R$538.7m in Q3, but declined 3% to R$1.500bn for 9M.

• Q3 gross profit was R$123.2m with 23% margin, broadly steady in amount YoY; 9M gross profit decreased 15% to R$326.8m, with 22% margin versus 25%.

• 9M operating income was R$151.7m, down 23% YoY, with 10% margin; Q3 operating income was R$55.6m, with 10% margin, in line with Q3 2025.

• 9M net income of R$170.3m was 21% below 2025; net margin was 11.4% versus 13.9%, reflecting lower demand, factory underutilization and reduced deferred-tax benefits.

• 9M EBITDA was R$230.5m, down 9% YoY, with 15% margin versus 16%; Q3 EBITDA rose 4% to R$81.8m, maintaining a 15% margin.

Outlook and guidance

• Priorities include operational efficiency, disciplined risk management, recovering margins through price adjustments, and continued investment in modernization, automation, robotics and new products.

• For coming quarters, compressor operations plan to sustain active commercial efforts, strengthen key customer and reseller relationships, selectively expand the product range and protect profitability and cash strength.

• Preparation for Brazil’s tax reform and IFRS 18 is underway; IFRS 18 takes effect on January 1, 2027, with comparative reporting required from Q1 2027.