Alpargatas (ALPA4) Q2 2026 earnings summary

Executive summary

• Achieved record adjusted EBITDA of R$286 million in 2Q26 (margin 23.3%), the highest for a second quarter, driven by strong sales growth, cost discipline, and brand performance in Brazil and internationally.

• Net sales reached R$1,226.4 million (+11.3% YoY), with Havaianas contributing R$1,215 million (+11.4%), and net income nearly doubled to R$170 million (+95.1% YoY).

• Volume growth was strong in Brazil (+9%) and Europe (+21%), while the US saw a 30% quarterly decline due to a business model shift but 40% growth in the first half.

• Disciplined execution in marketing, portfolio, and cost management led to improved return on capital and margins.

• Operational improvements and successful marketing campaigns supported robust cash generation and brand engagement.

Financial highlights

• Gross profit rose 14.6% to R$690.8 million, with gross margin up 1.6pp to 56.3%.

• Adjusted EBITDA increased 48.5% to R$286 million, margin up 5.8pp to 23.3%.

• Net income reached R$169.7 million (+95.1% YoY), margin 13.8% (+5.9pp YoY).

• Free cash flow to equity was R$74 million, reversing a negative R$37 million in 2Q25.

• ROIC reached 18% in LTM 2Q26, up 11pp from LTM 2Q25.

Outlook and guidance

• Management expects continued growth opportunities in Brazil and internationally, especially in Europe and the US, with a focus on disciplined execution, market share gains, and sustainable growth.

• Capital expenditure for 2026 is budgeted at R$243 million, with R$54 million invested in 2Q26.

• No specific guidance provided, but positive trends in execution and market expansion are expected to support future profitability.