Intelbras (INTB3) Q2 2026 earnings summary

Executive summary

• Net revenue for 2Q26 reached R$1,149 million, up 3.5% sequentially but down 7.8% year-over-year due to a strong Q2 2025 baseline and ERP normalization effects.

• Net income was R$158.3 million, up 16.1% year-over-year and 3.4% sequentially, with a net margin of 13.8%.

• EBITDA reached R$168.9 million, up 8.1% sequentially and 9.4% year-over-year, with margin expansion to 14.7%.

• All business segments posted sequential growth, with ICT increasing its revenue share to 25% and Security remaining the largest at 60%.

• Free cash flow exceeded EBITDA, supported by disciplined capital allocation and strong operating cash generation.

Financial highlights

• Gross margin expanded to 33.1%, up 2.4 p.p. sequentially and 3.8 p.p. year-over-year, with gross profit rising 11.5% sequentially and 4.0% year-over-year.

• EBITDA margin improved to 14.7%, up 0.6 p.p. sequentially and 2.3 p.p. year-over-year.

• Net margin reached 13.8%, stable sequentially and up 2.8 p.p. year-over-year.

• ROIC (pre-tax) increased to 18.8%, up 1.1 p.p. sequentially and 5.2 p.p. year-over-year.

• Net cash position was R$585.1 million at quarter-end, with gross debt reduced by R$99.9 million.

Outlook and guidance

• Management expects operating margins to normalize as cyclical gains fade, but structural improvements from profitability focus and working capital discipline should persist.

• Investment cycle in Manaus to expand industrial capacity will continue through 2026 and 2027.

• The company remains cautious amid macroeconomic and global uncertainties, emphasizing execution efficiency and value creation.

• Margins may fluctuate in the second half due to cost pressures and inventory rotation, but pricing adjustments will be made as needed.

• GPON phase-out to be completed by year-end, with revenue impact expected to decrease to single digits in H2.