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 a margin of 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, with a strategic shift to prioritize iron ore in Paraguay.

Financial highlights

• Brazil division handled 2.7 million tons, with adjusted EBITDA of R$ 184 million and a 51% margin, stable year-over-year.

• Paraguay handled 1.6 million tons, up 10% year-over-year, with recurring adjusted EBITDA of R$ 138 million and a 45% margin.

• Consolidated volumes reached 4.2 million tons, up 5% year-over-year; net operating revenue was R$ 664 million.

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

• Investments totaled R$ 23 million in 2Q26, down 75% year-over-year, focused on maintenance and selective expansion.

Outlook and guidance

• Management expects continued focus on operational efficiency, cost control, and capital structure optimization, with leverage expected to remain at conservative levels.

• Q3 2026 results are expected to be broadly in line with the prior year, with uncertainties around corn exports and El Niño impacts.

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