Brava Energia (BRAV3) Q2 2026 earnings summary

Executive summary

• Achieved record net revenue of R$3,598 million (US$712 million) in 2Q26, up 15% quarter-on-quarter and 14% year-over-year, driven by higher oil and gas prices, improved pricing, and operational efficiency.

• Adjusted EBITDA (ex-IFRS 16) reached R$1,774 million (US$351 million), up 33% year-over-year and 9% sequentially, with margin expanding to 49.3%.

• Net income for 2Q26 was R$871 million, reversing the prior quarter's loss, supported by higher Brent prices and downstream margin expansion.

• Average daily production reached 82,000 boepd, an 8% increase quarter-on-quarter, with significant contributions from offshore assets and recovery in the Potiguar Basin.

• Fifth consecutive quarter of net debt reduction, with leverage ratio at 1.97x and cash position of US$965 million.

Financial highlights

• Net revenue: R$3,598 million (US$712 million), up 14% year-over-year and 15% quarter-on-quarter; Adjusted EBITDA: R$1,774 million (US$351 million), margin 49.3%.

• Net income: R$871 million in 2Q26, compared to a loss in 1Q26.

• Lifting cost averaged US$16.3/boe (+15% sequentially), with onshore at US$20.9/boe and offshore at US$14.0/boe.

• Capex totaled R$765 million (US$151 million) in 2Q26, with 74% allocated to offshore drilling campaigns.

• Cash and cash equivalents: R$4,995 million (-11% QoQ); net debt: R$7,378 million (-2% QoQ, -17% YoY).

Outlook and guidance

• Offshore drilling campaign progressing on schedule and within budget, with new wells at Papa-Terra expected in 4Q26 and Atlanta in 1H27.

• Focus on operational efficiency, capital discipline, and sustainable value creation.

• CapEx expected to remain at Q2 levels through Q1 2027, then normalize as drilling campaigns conclude.

• Stronger cash generation anticipated in 2027 due to lower CapEx and higher production from new wells.

• Market environment remains volatile due to geopolitical and regulatory factors, but hedging and integrated operations support resilience.