Tupy (TUPY3) investor relations material

Executive summary

• New CEO prioritized operational discipline, asset optimization, automation, and value creation, with a focus on profitable growth and margin expansion.

• Sequential improvement in results driven by volume recovery, operational efficiency, and disciplined execution, though still below 2Q25 levels.

• Industrial footprint optimization, including shift reductions and production relocations, generated R$40 million in 1H26, with further gains expected.

• Strategic expansion and new contracts contributed R$250 million in 1H26, with over R$600 million expected in 2026.

• Management is committed to consolidating cost gains, improving product mix, and maintaining commercial discipline to mitigate external impacts.

Financial highlights

• Net revenue for 2Q26 was R$2.5 billion, down 6% year-over-year, but up 7% sequentially from 1Q26.

• Adjusted EBITDA reached R$156 million (6.3% margin), down 26% year-over-year, but up 57% from 1Q26.

• Net loss of R$11 million in 2Q26, compared to net income of R$24 million in 2Q25.

• Gross margin was 12.1% in 2Q26, down from 13.9% in 2Q25, pressured by lower production volumes and fixed cost dilution.

• Net debt at period end was R$1.9 billion, down 26% year-over-year and 8% sequentially; cash position stood at R$2.0 billion, with 52% in foreign currency.

Outlook and guidance

• Management expects a stronger second half, with robust order backlog, new contracts, and international demand, especially in North America.

• Leverage is expected to fall below 2.5x by year-end, driven by volume recovery and improved margins.

• Company targets a return to double-digit margins in H2 2026, supported by operational efficiency and market recovery.

• Revenue from new projects expected to exceed R$600 million in 2026, with R$250 million recognized in 1H26.

• Exchange rate impacts are expected to be partially recovered in Q3 and through ongoing customer negotiations.