M. Dias Branco (MDIA3) Q2 2026 earnings summary

Executive summary

• Achieved fourth consecutive quarter of sales volume growth, with 477 thousand tons sold in 2Q26 (+4.4% YoY), despite a challenging consumer environment and high family debt in Brazil.

• Net revenue reached R$2.7 billion in 2Q26 (-0.9% YoY), stable year-over-year but up 22% sequentially, impacted by lower average prices in commodity-linked categories.

• Gross margin expanded to 34.2% in 2Q26 (vs. 33.4% in 2Q25), driven by volume growth and lower variable costs.

• EBITDA was R$284 million in 2Q26 (-18% YoY), with margin at 10.5%; net income dropped to R$169 million (-22% YoY), but both improved sequentially.

• Maintained strong cash generation and doubled net cash position YoY to R$767 million, with AAA Fitch rating reaffirmed for the ninth consecutive year.

Financial highlights

• Sales volume up 4.4% YoY in 2Q26; average price per kg down 5% YoY.

• Gross profit reached R$923.7 million in 2Q26 (+1.6% YoY); gross margin at 34.2%.

• EBITDA margin decreased to 10.5% in 2Q26 (vs. 12.7% in 2Q25); net income margin at 6.3%.

• Operating cash generation was R$322 million in 2Q26, with R$2.1 billion in cash at quarter-end.

• Capex reached R$101.8 million in 2Q26 (+97% YoY), focused on automation and industrial optimization.

Outlook and guidance

• Continued focus on operational efficiency, automation, and modernization to drive future gains.

• Expectation of further SG&A optimization and cost reductions from restructuring and the Acelera project, with benefits anticipated from Q3 2026 onward.

• Management expects to maintain a solid financial position and AAA rating, with sequential improvements in EBITDA margin and results in the second half of the year.