Blau Farmacêutica (BLAU3) Q3 2026 earnings summary

Executive summary

• 3Q26 revenue reached BRL 506m, up 7% YoY; gross margin rose 260 bps to 43.2% and recurring EBITDA margin increased 120 bps to 25.3%.

• 9M26 revenue rose 9% to BRL 1,428m; recurring EBITDA increased 12% to BRL 358m, while recurring net income excluding FX rose 13% to BRL 213m.

• 9M26 operating cash flow grew 84% to BRL 425m; quarter-end cash and financial investments exceeded gross debt by BRL 98m.

Financial highlights

• 3Q26 gross profit rose 14% to BRL 219m; 9M26 gross profit increased 15% to BRL 611m.

• 3Q26 recurring EBITDA was BRL 128m, up 12%; 9M26 recurring EBITDA was BRL 358m, up 12%.

• Reported net income was BRL 69m in 3Q26, down 35%, and BRL 161m in 9M26, down 38%; recurring net income excluding FX rose 7% and 13%, respectively.

• 3Q26 operating cash flow was BRL 213m, up 49%; free cash flow was BRL 88m, 3.4x 3Q25. 9M26 free cash flow was BRL 158m versus a BRL 58m outflow in 9M25.

• 9M26 capital expenditures were BRL 236m, down 19%; total investment including ICT development advances was BRL 267m.

Outlook and guidance

• Management sees potential for further revenue growth acceleration in 4Q26 on a more favorable comparison base; Q4 results are expected to be positive.

• Expense dilution and process improvements could contribute more clearly to EBITDA margin expansion from 2027; short-term gross-margin gains may moderate.

• Four monoclonal antibody projects remain a priority; the pipeline could double addressable market potential in ~2 years and triple it over the longer term.

• Two newly authorized production lines are expected to contribute 4%–5% of revenue; two additional lines could add 5%–10%, subject to inspections and approvals.

• Investment discipline will continue, prioritizing high-return strategic projects; 2027 CapEx is expected to exceed 2026 but remain within EBITDA generated.