PBG (PTBL3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$597.2 million in 1Q26, up 0.9% year-over-year but down 7.0% sequentially, reflecting a competitive market, seasonality, and international growth.

• Gross margin improved 1.9 p.p. sequentially to 33.4%, driven by operational improvements and premium product mix, but declined 4.5 p.p. year-over-year.

• EBITDA was R$94.6 million (margin 15.8%), up 25% year-over-year and 79.2% sequentially, aided by non-recurring gains from a sale and leaseback transaction; adjusted EBITDA was R$51.2 million (margin 8.6%).

• Net loss totaled R$41.1 million (margin -6.9%), a 25.7% increase year-over-year, mainly due to higher financial expenses; adjusted net loss was R$84.5 million.

• Leadership changes included the return of the founder as CEO and appointment of a new CFO, with a focus on operational efficiency and capital structure optimization.

Financial highlights

• Net revenue: R$597.2 million (+0.9% YoY, -7.0% QoQ).

• Gross margin: 33.4% (+1.9 p.p. QoQ, -4.5 p.p. YoY).

• EBITDA: R$94.6 million (+25.0% YoY, +79.2% QoQ); EBITDA margin: 15.8%.

• Adjusted EBITDA: R$51.2 million (-51.0% YoY, +28.1% QoQ); margin: 8.6%.

• Net loss: R$41.1 million (net margin -6.9%); adjusted net loss: R$84.5 million (-14.2% margin).

• Net debt: R$1,120.2 million; Net Debt/EBITDA: 3.29x.

• Working capital: R$151.9 million; cash conversion cycle increased to 21 days.

Outlook and guidance

• Market conditions are expected to remain challenging in 2026 due to overcapacity, high inventories, and competitive pressures, with stable net revenue in Brazil.

• Gross margin is anticipated to remain above 37% in 2Q26 and through 2026, supported by price adjustments and operational improvements.

• Focus on reducing operating expenses, working capital, and optimizing capital structure through debt reprofiling and organizational restructuring.

• Portobello America is expected to reach breakeven and contribute more significantly to consolidated margins.