Hidrovias do Brasil (HBSA3) Q1 2026 earnings summary

Executive summary

• Q1 2026 faced significant operational and market challenges, including access difficulties in the North due to rainfall, infrastructure works, and truck reception issues, while Santos showed partial recovery.

• Net operating revenue reached R$445 million, down 20% year-over-year and 13% sequentially, mainly due to the sale of the Coastal Navigation operation and lower volumes in Brazil.

• Recurring Adjusted EBITDA was R$182 million, a 29% decrease year-over-year but up 14% from 4Q25, reflecting lower costs and expenses.

• Net loss totaled R$34 million, compared to a loss of R$2 million in 1Q25 and R$280 million in 4Q25, impacted by higher financial expenses and operational challenges.

• Cash flow from operating activities consumed R$25 million, mainly due to timing effects of customer receipts.

Financial highlights

• Consolidated handled volume was 3,202 thousand tons, down 23% year-over-year and 11% sequentially; Brazil operations at 2,126 thousand tons (-8% YoY), Paraguay at 1,076 thousand tons (-1% YoY).

• Net operating revenue was R$445 million, down from R$489 million last year; recurring Adjusted EBITDA was R$182 million, down from R$235 million year-over-year.

• Recurring Adjusted EBITDA margin was 41%, down 5 p.p. year-over-year, but up 9 p.p. sequentially.

• Investments totaled R$37 million, a 68% decrease year-over-year, returning to normalized levels after prior period one-offs.

Outlook and guidance

• 2026 investment plan up to R$270 million, with R$79 million for expansion and R$191 million for maintenance; CapEx investments postponed in Q1 but expected to ramp up, following a non-linear curve.

• Navigability conditions in the North are expected to remain normalized in Q2 2026, with a favorable cargo mix including more iron ore.

• Completion of infrastructure works at Miritituba and Transamazônica is expected to resolve access bottlenecks before the next harvest.