Ferreycorp (FERREYC1) Q1 2026 earnings summary

Executive summary

• Consolidated sales reached $578 million (S/1.98 billion), up 8.3% year-over-year in USD, driven by strong demand in mining, construction, and infrastructure sectors, especially for Caterpillar machinery.

• Local currency sales remained flat due to a 5% appreciation of the PEN, but underlying demand was robust.

• Operating expenses (SG&A) were reduced by 10.4% year-over-year, reflecting disciplined cost control and operational efficiency.

• Net profit dropped 63% year-over-year to S/53 million, mainly due to significant FX losses and lower EBITDA; adjusted net profit fell 17% to S/110 million.

• Dividend payout of S/288.3 million (S/0.09487 per share) approved, with payment scheduled for May 8, 2026.

Financial highlights

• Revenues increased 8.3% in USD and 0.3% in PEN year-over-year; consolidated sales in PEN were S/1.98 billion.

• Operating profit was S/170 million, down 14% year-over-year; adjusted operating profit was S/188 million, down 13%.

• EBITDA was S/247 million (adjusted S/265 million), both down 8% year-over-year.

• Gross margin declined to 22.1% (adjusted: 23.0%) from 25.4% (adjusted: 26.3%) year-over-year; operating margin was 8.6% vs. 10%; net margin was 2.7% vs. 7.3%.

• FX loss of S/67.2 million compared to a S/35.2 million gain in Q1 2025.

Outlook and guidance

• Expectation of continued strong demand in mining and infrastructure, with prime product sales to large mining projected around $200 million for the year.

• Sales mix for the remainder of the year anticipated to remain similar, with higher prime product share and stable aftermarket demand.

• Margins expected to stabilize around 23% for the rest of the year, with ongoing cost adjustments and inventory control.

• Management highlights ongoing expense optimization and plans to maintain medium-term debt discipline to support Capex.

• The company expects continued volatility in exchange rates and is focused on inventory management and customer demand fulfillment.