Kepler Weber (KEPL3) Q1 2026 earnings summary

Executive summary

• Net revenues reached R$318.1 million in Q1 2026, down 10.9% year-over-year, with EBITDA at R$33.7 million and net income at R$17.1 million, reflecting resilience amid a challenging Brazilian agribusiness environment.

• Diversification, international expansion, and operational efficiency helped offset sector headwinds, with International Business and Agribusiness segments showing strong growth.

• Maintained strong cash generation and disciplined capital allocation, with net cash of R$56.6 million and gross cash of R$375.8 million as of March 2026.

• Innovation strategy advanced, with new products accounting for 5% of revenue, up from 2% in Q1 2025.

• Maintained a double-digit EBITDA margin despite high interest rates and restricted credit.

Financial highlights

• Net revenue was R$318.1 million, down 10.9% year-over-year, with gross profit and margin declining.

• EBITDA was R$33.7 million (margin 10.6%), and net income was R$17.1 million (net margin 5.4%).

• Cash generation was strong at R$55 million, with operating cash flow of R$28.2 million.

• CAPEX for Q1 2026 was R$15.2 million, focused on IT and modernization, and 10% below the previous year.

• ROIC for the last 12 months was 21.4%, down from the prior year but above market peers.

Outlook and guidance

• Farm segment expected to underperform 2025, with continued double-digit contraction due to restrictive credit and limited margins.

• Agribusiness segment projected to achieve double-digit growth in Q2 2026, driven by biofuels and a robust backlog.

• International business anticipated to remain stable at high levels, following record growth in prior years.

• Replacement and services expected to rebound with double-digit growth in Q2 2026.

• Backlog shows single-digit growth YoY, with a shift toward larger Agribusiness projects and reduced Farms segment exposure.