Marcopolo (POMO4) Q1 2026 earnings summary

Executive summary

• Consolidated net revenue was R$1,655.2 million in Q1 2026, down 1.3% year-over-year, with net income up 8.8% to R$264.6 million (16.0% margin) and EBITDA rising 16.3% to R$304.8 million (18.4% margin), reflecting improved profitability despite lower sales volumes.

• Total production reached 2,997 units, down 9.0% year-over-year; market share in Brazilian bodywork production declined to 43.5% from 45.5% due to extended collective vacations.

• International operations revenue grew 4.6% year-over-year, with Australia showing exceptional performance and Canada recovering, offsetting declines in domestic and export revenues.

• The company maintained resilience amid a challenging macroeconomic and geopolitical environment, with expectations for volume recovery in Q2 2026, supported by government programs and a robust order backlog.

Financial highlights

• Gross profit was R$373.4 million (22.6% margin), down 2.8% year-over-year.

• EBITDA reached R$304.8 million (18.4% margin), up 16.3% year-over-year; adjusted EBITDA excluding non-recurring items was R$259.8 million (15.7% margin).

• Net income margin improved to 16.0% from 14.5% in Q1 2025.

• Return on Invested Capital (ROIC) reached 24.7%; Return on Equity (ROE) was 32.8%.

• Net debt/EBITDA ratio stood at 0.2x, indicating a strong balance sheet.

Outlook and guidance

• Anticipates volume recovery in Q2 2026, with gradual growth expected for the remainder of the year, driven by seasonality, government programs, and heavier models gaining revenue share.

• City bus segment remains challenging due to rising fuel prices and tariff pass-through difficulties; micro and Volares segments show growth from government programs.

• Export growth faces challenges from a strong Real and lower Argentine demand; Australian operations expected to continue strong performance.

• Investments will focus on industrial efficiency and R&D, with continuous cost monitoring.