Dexxos Participações (DEXP3) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q26 was R$386.9 million, down 35.9% year-over-year and 7.8% sequentially, reflecting lower sales in both chemical and steel segments.

• Adjusted EBITDA reached R$58.5 million, down 33.7% year-over-year but up 62.1% sequentially, with margin improving to 15.1%.

• Adjusted net income was R$51.3 million, stable year-over-year and up 132.4% sequentially, with a 13.3% margin.

• Net cash position reached R$32.7 million at quarter-end, reversing a net debt position from 1Q25.

• The first share buyback program was completed, and a second program was launched, targeting up to 3.6 million shares.

Financial highlights

• Gross profit for 1Q26 was R$85.6 million, up 33.5% sequentially but down 19.7% year-over-year; gross margin improved to 22.1%.

• SG&A expenses dropped 9.5% year-over-year and 11.3% sequentially, reflecting lower selling and administrative costs.

• Adjusted EBITDA margin improved to 15.1% in 1Q26 from 8.6% in 4Q25.

• Adjusted net income margin rose to 13.3% in 1Q26 from 5.3% in 4Q25.

• Cash and cash equivalents at quarter-end were R$360.6 million, with gross debt at R$329.9 million.

Outlook and guidance

• Ongoing ramp-up in specialty resins and expansion in the wood panel market are expected to support future growth in the chemical segment.

• The steel segment is targeting operational efficiency and portfolio diversification, especially in the solar market.

• The company is monitoring regulatory changes, including tax reform and new dividend taxation, and adapting systems and processes accordingly.

• Ongoing investments in innovation and expansion, especially in the chemical segment, are expected to support long-term growth.