Marcopolo (POMO4) Q2 2026 earnings summary

Executive summary

• Consolidated net revenue reached R$2,373.3 million in 2Q26, up 3.0% year-over-year, driven by strong microbus sales, which now represent 42.5% of total volume.

• Net income was R$271.2 million (margin 11.4%), down 15.5% year-over-year, impacted by a lighter product mix, higher costs, and non-recurring restructuring costs in Argentina.

• Market share in Brazil rose to 48.3% in 2Q26, reflecting strong performance in microbuses.

• International operations showed mixed results: Australia delivered strong growth, while Argentina, Mexico, South Africa, and China faced declines due to macroeconomic challenges.

• Total production reached 4,105 units in 2Q26, up 8.0% year-over-year, with domestic growth offsetting overseas declines.

Financial highlights

• Gross margin dropped 3.8 percentage points year-over-year to 21.9%, EBITDA margin fell 3 points to 14.3%, and net income margin decreased by 2.5 points to 11.4%, mainly due to a higher share of lower-margin microbuses and increased costs.

• Export revenue from Brazil increased 16.2% year-over-year, but international operations revenue declined 16.3%.

• Earnings per share for 2Q26 was R$0.218, down 23.3% year-over-year.

• Net financial debt was R$1,815.9 million at June 30, 2026, with the industrial segment at 0.3x EBITDA.

• Gross profit for 2Q26 was R$519.7 million, a 12.4% decrease year-over-year.

Outlook and guidance

• Management expects sequential recovery in coach volumes in 2H26, supported by seasonality and the Move program, with volume recovery anticipated in 4Q26.

• Delays in government tenders and lack of new Ministry of Health orders may weigh on 3Q26 production, but ratification of Phase 13 could support future volumes.

• Fleet renewal opportunities are anticipated as aging fleets and maintenance costs rise, but timing depends on macroeconomic stability and credit availability.

• New product launches and innovations, including electric and alternative-fuel buses, are planned for Lat.Bus and future quarters.

• Investments are aligned with future demand expectations, focusing on value creation and efficiency.