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 for Caterpillar machinery in mining, construction, and infrastructure sectors.

• Operational efficiency improved, with SG&A expenses down 10.4% year-over-year.

• Net profit declined 63% year-over-year to S/53 million, mainly due to FX losses and margin pressure; adjusted net profit (excluding FX) was S/110 million, down 17%.

• Dividend payout of S/288.3 million approved, with payment scheduled for May 8, 2026.

• ROIC at 8.3% and ROE at 13.5%, reflecting healthy profitability despite margin pressures.

Financial highlights

• Operating profit for Q1 2026 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%) a year ago, due to a higher share of lower-margin machinery sales.

• Net financial expenses increased 7% to S/25 million, reflecting higher debt levels but lower average interest rates.

• Free cash flow was negative S/248 million, compared to positive S/96 million a year ago.

Outlook and guidance

• Expectation of continued strong demand in mining and infrastructure, with prime product sales mix remaining elevated for the year.

• Margins anticipated to stabilize around 23% for the remainder of 2026, with ongoing cost control and inventory management.

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

• Operations remain agile and focused on supporting critical customer needs and driving shareholder value amid Peru's political transition.

• Spare parts and services expected to remain below historical 50% of sales due to higher prime product share.