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 marked by high indebtedness and interest rates in Brazil.

• Net revenue reached R$2.7 billion in 2Q26, stable year-over-year (-0.9%), 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

• Net revenue: R$2.7 billion in 2Q26 (-0.9% YoY, +22% vs. 1Q26); R$4.9 billion in 1H26 (-0.3% YoY).

• EBITDA: R$284 million in 2Q26 (-18% YoY, +45% vs. 1Q26); margin at 10.5%.

• Net income: R$169 million in 2Q26 (-22% YoY, +59% vs. 1Q26).

• Operating cash generation: R$322 million in 2Q26 (-23% YoY).

• 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 productivity and cost reduction.

• Ongoing investments in technology and process simplification to sustain market share gains and sales volume growth.

• Management expects further SG&A optimization, sequential improvements in EBITDA margin, and a stable AAA rating.