Kepler Weber (KEPL3) Q2 2026 earnings summary

Executive summary

• Net revenue for 2Q26 was R$299.1 million, down 3.9% year-over-year, with Agribusiness (+17.9%) and Replacement & Services (+5.0%) partially offsetting a 13.2% drop in Farms due to macroeconomic headwinds.

• EBITDA for 2Q26 was R$25.9 million (margin 8.7%), a 31.7% decrease year-over-year, and net income was R$6.3 million (margin 2.1%), down 56.1%, reflecting lower activity and margin pressure.

• Diversification strategy advanced, with Agribusiness, International, Ports & Terminals, and Replacement & Services now comprising 72% of net revenues, up from 66% a year ago.

• The company maintained a positive net cash position of R$29.3 million at quarter-end, supporting financial flexibility and growth strategy.

• Strong client relationships and high employee engagement were maintained, with 197 projects delivered at a 94% on-time rate, NPS of 77%, and GPTW index at 82%.

Financial highlights

• 1H26 net revenue was R$617.1 million, down 7.7% year-over-year.

• EBITDA for 1H26 was R$59.6 million (margin 9.7%), a 34.4% decrease year-over-year.

• Net income for 1H26 was R$23.4 million (margin 3.8%), down 41.3% year-over-year.

• Gross margin in 2Q26 was 20.3%, down from 23.3% in 2Q25, mainly due to higher cost of goods sold as a percentage of revenue.

• Cash position improved to R$354 million at Q2 2026, with net cash at R$29.3 million and R$45.5 million in adjusted cash generation.

Outlook and guidance

• Management expects continued challenges in 2026 and 2027 due to low farm margins and high interest rates, but anticipates recovery as the agribusiness cycle turns.

• Diversification and innovation are expected to drive resilience, with a robust pipeline in ports and terminals and structural demand for storage solutions.

• New product launches contributed 12% of revenue in the last five years.

• Backlog grew 9.3% sequentially but fell 13.8% year-over-year, reflecting strong Agribusiness but weak Farms demand.

• No formal revenue or earnings guidance provided.