Grupo Multi (MLAS3) Q1 2026 earnings summary

Executive summary

• Net revenue grew 14.3% year-over-year to BRL 872.7 million in 1Q26, with strong gross margin improvement and a significant turnaround in operational cash flow despite seasonal declines from 4Q25.

• Gross margin expanded to 30.4%, up 6.7 percentage points from Q1 2025, driven by portfolio optimization, pricing discipline, and successful price pass-throughs amid global component cost increases.

• EBITDA reached BRL 96.5 million, a significant increase from Q1 2025, reflecting operational improvements and expense control.

• Net income surged 91% year-over-year to BRL 123.4 million, aided by positive FX variation and operational gains, reversing a loss in the previous quarter.

• Operating cash flow turned positive at BRL 65.8 million, reversing a cash consumption of BRL 330.3 million in Q1 2025.

Financial highlights

• Net revenue: BRL 872.7 million, up 14.3% year-over-year.

• Gross margin: 30.4%, up 6.7 percentage points from Q1 2025.

• EBITDA: BRL 96.5 million, margin 11.1%, highest since 2022, with no non-recurring items.

• Net income: BRL 123.4 million, with BRL 35 million positive FX effect.

• Operating cash flow: BRL 65.8 million generated, compared to BRL 330.3 million burn in Q1 2025.

Outlook and guidance

• Management expects margin pressure in future quarters due to higher inventory costs but anticipates stable margins through continued price pass-throughs and portfolio optimization.

• Focus remains on profitability over volume, expense discipline, and working capital management.

• Dividend policy prioritizes debt reduction but aims for recurring annual payments as financial health allows.

• The macroeconomic environment remains challenging, with high interest rates, logistical pressures, and global supply chain uncertainties.

• Continuous monitoring of market opportunities and trends is emphasized.