Grupo Casas Bahia (BHIA3) Q1 2026 earnings summary

Executive summary

• Achieved consolidated GMV of R$11.2 billion in Q1'26, up 5.0% year-over-year, led by e-commerce growth of 14.6% and 1P online GMV up 27.4%.

• Net revenue rose 6.1% to R$7.4 billion, with gross margin stable at 30.3%.

• Adjusted EBITDA reached R$597 million (8.1% margin), up 4.7% year-over-year.

• Free cash flow to the firm was R$852 million, reversing a cash consumption of R$(322) million in Q1'25 and up R$1.2 billion year-over-year.

• Net debt reduced by R$2.7 billion (68% year-over-year), with leverage at 0.5x adjusted EBITDA.

Financial highlights

• Gross revenue grew 6.4% to R$8.8 billion, driven by e-commerce and financial solutions.

• Gross profit increased 6.5% to R$2.25 billion; gross margin at 30.3% (+0.1 p.p. year-over-year).

• Adjusted EBITDA margin stable at 8.1%; EBIT down 12.9% to R$250 million.

• Net loss widened to R$(1.064) billion, mainly due to higher financial expenses from increased interest rates.

• SG&A expenses rose 5.4% but improved as a percentage of net revenue (23.0%).

Outlook and guidance

• Inventory build-up in Q1'26 positions the company to capture sales opportunities in Q2'26, especially around the FIFA World Cup.

• Continued focus on digital growth, operational efficiency, and leveraging AI for improvements.

• Full impact of new capital structure expected in 2027, with significant improvements in financial expenses and profitability anticipated in the second half of 2026.

• Conservative approach to credit and inventory, with ongoing optimization of stock turnover and supplier terms.

• Management expects gradual interest rate declines and positive impacts from the World Cup and potential economic measures to boost disposable income.