Kepler Weber (KEPL3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$318.1 million in 1Q26, down 10.9% year-over-year, mainly due to lower volumes in the Farms segment, partially offset by strong growth in International Business (+47.1%) and Agribusiness (+4.2%).

• EBITDA was R$33.7 million with a margin of 10.6%, reflecting lower operational leverage and disciplined cost management.

• Net income totaled R$17.1 million, a 33% decrease year-over-year, with a net margin of 5.4%.

• Cash generation remained solid, with a net cash position of R$56.6 million and gross cash of R$375.8 million as of March 2026.

• Portfolio diversification and innovation advanced, with new products representing 5% of revenue (vs. 2% in 1Q25).

Financial highlights

• Consolidated net revenue: R$318.1 million (-10.9% YoY); EBITDA: R$33.7 million (-36.4% YoY); EBITDA margin: 10.6% (-4.2 p.p. YoY).

• Net income: R$17.1 million (-33% YoY); net margin: 5.4% (vs. 7.2% in 1Q25); EPS: R$0.0988.

• Gross margin: 20.8% (vs. 23.8% in 1Q25).

• Operating cash flow: R$73.2 million (vs. -R$36.2 million in 1Q25); net cash position: R$56.6 million.

• CapEx for 1Q26 was R$15.2 million (4.8% of revenue), 10% below the previous year, focused on IT and modernization.

Outlook and guidance

• Management expects continued resilience from Agribusiness and Replacement & Services, with a more selective environment due to pressured commodity margins, high interest rates, and restricted credit.

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

• No explicit quantitative guidance provided; focus remains on cost discipline, capital allocation, and innovation.