Fras-le (FRAS3) Q3 2026 earnings summary

Executive summary

• 3Q26 net revenue was R$1,383.5m, down 1.9% YoY and flat QoQ; at constant currency, revenue rose 0.3%.

• Gross margin expanded 1.0 pp to 35.0%; adjusted EBITDA was R$257.6m, down 5.3%, with an 18.6% margin.

• Brazilian aftermarket destocking and currency translation pressured results, while foreign-market growth, pricing and productivity supported resilience.

Financial highlights

• Q3 gross profit was R$484.2m, up 1.1% YoY; operating profit was R$186.5m, down 13.5%, and reported EBITDA was R$250.4m, down 8.4%.

• Net income from continuing operations was R$110.8m, up 1.1%; net profit was R$100.7m, down 5.2%, with a 7.3% net margin.

• 9M26 revenue was R$4,015.5m, down 1.9%; adjusted EBITDA was R$751.7m, down 2.1%, and net profit was R$232.8m, up 4.7%.

• Q3 gross margin was 34.5%, up 0.5 pp, excluding R$6.8m of prior-period COGS credits; reported gross margin was 35.0%.

Outlook and guidance

• FY26 guidance: net revenue R$5.2bn–R$5.5bn, external-market revenue US$540m–US$570m, adjusted EBITDA margin 17.5%–20.0%, and organic investment R$170m–R$210m.

• 9M26 revenue, external-market revenue, adjusted EBITDA margin and organic investment were within annual guidance ranges.

• Priorities include Dacomsa synergy capture, operating efficiency and business-platform development; growth strategy combines organic expansion and M&A with attention to leverage.