Tupy (TUPY3) investor relations material

Executive summary

• Net revenue reached R$2.6 billion in 2Q25, down 6% year-over-year, mainly due to a 10% drop in sales volumes, especially in commercial vehicles in the US and Europe, partially offset by 12% growth in MWM revenue.

• Adjusted EBITDA was R$210 million, with margin falling to 8% from 14% in 2Q24, reflecting lower volumes and price adjustments.

• Net income rose 33% year-over-year to R$24 million, driven by improved financial results and favorable currency effects.

• Capacity reduction and efficiency initiatives are underway, including a synergy plan in Mexico expected to yield R$100 million in 2026 and R$180 million annually from 2027.

• Strategic market consolidation, plant reorganization, and diversification into high-growth segments like energy, decarbonization, and aftermarket support long-term resilience.

Financial highlights

• Gross margin declined to 13.9% from 19.4% year-over-year, mainly due to lower volumes and fixed cost dilution.

• Operating expenses increased 4% to R$250 million.

• Net debt at period end was R$2.6 billion, or 2.45x adjusted EBITDA for the last twelve months.

• Cash and equivalents stood at R$1.44 billion as of June 2025.

• Net financial expense improved to R$35 million from R$176 million in 2Q24, aided by positive exchange rate variations and hedging.

Outlook and guidance

• Macroeconomic uncertainties and trade barriers are expected to continue impacting demand in key markets, especially commercial vehicles in the US and Europe.

• Capacity reduction and operational efficiency initiatives are projected to yield R$100 million in 2026 and R$180 million annually from 2027.

• Efficiency and restructuring initiatives are projected to add at least two percentage points to EBITDA margin by 2026, targeting a return to historical margin levels.

• New contracts worth R$1.4 billion in annualized revenue will enter production in H2 2025, with positive margin impact and significant sales growth expected in 2026.

• Focus remains on expanding in high-growth segments such as energy, decarbonization, and aftermarket.