Orizon Valorização de Resíduos (ORVR3) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong revenue growth of 37.5% year-over-year, with EBITDA up 30.5% and net income of R$22.6 million, reversing prior year losses.

• Commercial operations began at Paulínia and Jaboatão biomethane plants, with March output at 112,000 m³/day and contribution margin above 65%.

• The business combination with Vital, Orbis, and GBio advanced, with CADE's unconditional approval and integration planning underway, aiming to create Brazil's largest waste valorization platform.

• Carbon credit sales continued for the fourth consecutive quarter, with 388,134 credits sold and new projects registered under Gold Standard and Verra.

• Secured 52.7 MW in the March 2026 Capacity Reserve Auction, ensuring long-term fixed revenue and complementing biomethane expansion.

Financial highlights

• Net revenue reached R$331.1 million, up 37.5% year-over-year and 25.3% sequentially, driven by higher volumes, price increases, biomethane commercialization, and recurring carbon credit sales.

• Adjusted EBITDA was R$143.4 million, a 30.5% increase year-over-year, with a margin of 43.3%.

• Net income was R$22.6 million, reversing a R$3.6 million loss in Q1 2025.

• Gross profit before depreciation and landfill closure provisions grew 27.3% year-over-year to R$182.8 million, margin at 55.2%.

• CAPEX totaled R$182.3 million, with 85.9% allocated to expansion, mainly in biomethane and energy transition projects.

Outlook and guidance

• Vital merger closing expected in Q2 2026, with integration and synergy capture underway and a unified five-year strategic plan.

• Biomethane production expected to reach 200,000 m³/day by end of H1 2026, with new plants coming online every three months.

• Regulatory changes, such as the Fuel of the Future Law and biomethane certification, are expected to drive structural demand.

• Guidance for Q3 will be provided post-incorporation, with expectations of continued growth above inflation and GDP.

• Continued investments in infrastructure and technology to support organic and inorganic growth.