Grupo Casas Bahia (BHIA3) Q2 2026 earnings summary

Executive summary

• The company undertook significant operational and financial restructuring in Q2 2026, including the closure of 298 stores and the launch of Phase 2 of its transformation plan, supported by judicial recovery to address structural liabilities and ensure business continuity.

• Net loss reached R$10.1 billion, driven by R$9.1 billion in non-recurring, non-cash items such as restructuring, goodwill impairment, and deferred tax asset write-offs.

• Net revenue grew 1.6% year-over-year, with GMV at R$10.5 billion and 1P online sales up 15.3%.

• Free cash flow reached R$800 million in Q2'26, totaling R$4.0 billion over the last twelve months.

• The company is prioritizing profitability, cash generation, and sustainable operations amid a challenging macroeconomic and credit environment.

Financial highlights

• Adjusted EBITDA was R$518 million, with a margin of 7.4%, down from 8.3% the previous year.

• Gross margin improved to 32.9% from 30.1% year-over-year, supported by a more profitable product mix.

• Adjusted net loss was R$978 million, compared to R$555 million in Q2'25.

• Positive cash generation was mainly from inventory reduction and store closures.

• Non-recurring impacts totaled R$9.1 billion, mainly from deferred tax adjustments, contingencies, and restructuring costs.

Outlook and guidance

• No expectation of macroeconomic improvement in the near term; planning assumes a challenging scenario through 2027.

• The company maintains a cash-first approach, prioritizing profitable channels and categories, and may adjust transformation measures based on liquidity and market conditions.

• No further major store closures anticipated after the current wave; company sized for resilience.

• Short-term working capital impacted by inventory stockout challenges expected in 2H26.