Hidrovias do Brasil (HBSA3) Q2 2026 earnings summary

Executive summary

• Net operating revenue reached R$ 664 million in 2Q26, down 4% year-over-year but up 49% sequentially, mainly due to the sale of the Coastal Navigation operation and strong seasonal volume growth in Paraguay and fertilizer contracts in Brazil.

• Recurring Adjusted EBITDA was R$ 322 million, down 8% year-over-year but up 77% from 1Q26, with margin at 48%.

• Net profit totaled R$ 100 million in 2Q26, up 97% year-over-year and a turnaround from a R$ 34 million loss in 1Q26, driven by lower financial expenses and tax burden.

• Operating cash flow was R$ 402 million, up 31% year-over-year, reflecting improved working capital and tax optimization.

• Volume growth in Santos (+35% YoY) and Paraguay (+10% YoY) offset operational challenges in the North (-5% YoY).

Financial highlights

• Net operating revenue for 2Q26 was R$ 664 million; recurring Adjusted EBITDA was R$ 322 million (margin 48%).

• Net profit for 2Q26 was R$ 100 million; net profit for 1H26 was R$ 66 million.

• Net debt was R$ 2,165 million, down 29% year-over-year; gross debt was R$ 3,319 million, down 21% year-over-year.

• Cash and financial investments totaled R$ 1,154 million at quarter-end.

• Investments totaled R$ 23 million in 2Q26, mainly for maintenance.

Outlook and guidance

• Management expects continued focus on operational efficiency, cost control, and capital structure optimization.

• Leverage is expected to remain at conservative levels, with ongoing debt management and hedging strategies.

• Q3 2026 results are expected to be broadly in line with the same period last year, with uncertainties around corn export dynamics and El Niño effects.

• Paraguay operations anticipate continued focus on iron ore, with opportunities for further volume growth and efficiency improvements.