Empreendimentos Pague Menos (PGMN3) Q2 2026 earnings summary

Executive summary

• Achieved record profitability in 2Q26, with EBITDA margin at 6.5% and net income up 22.2% year-over-year, driven by operational leverage, disciplined expense control, and strategic advances.

• Same-store sales grew 8.0%, outpacing inflation by 3x, and market share reached 6.7% nationally, with gains in all regions for the 11th consecutive quarter.

• Digital channel sales exceeded R$1 billion, up 40.6% year-over-year, now representing 24.1% of total sales.

• Recognized as one of the top 10 retail companies to work for in Brazil, emphasizing a people-centric culture and community engagement.

• Active client base reached 22.6 million, driven by growth in Continuous Care Clients.

Financial highlights

• Gross revenue grew 9.3% year-over-year in Q2 2026 to R$4.34 billion, with a three-year CAGR of 14%.

• Adjusted EBITDA rose 15.4% to R$281.7 million, with margin at 6.5%.

• Net income increased 22.2% to R$73.6 million, with EPS at R$0.51.

• Operating cash flow tripled to R$188.8 million in Q2, with LTM operating cash flow at R$573.4 million.

• Net debt/EBITDA improved to 1.8x, marking the twelfth consecutive quarter of deleveraging.

Outlook and guidance

• Store openings expected to accelerate as deleveraging continues, with investments in logistics and technology supporting future growth.

• Expecting normalization of gross margin pressures and inventory build-up by end of 3Q26 as the new Paraíba distribution center gains efficiency.

• Strategic focus on market share growth, private label expansion, and continued digital channel improvements.