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 and seasonality.

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

• EBITDA was R$94.6 million, up 79.2% from 4Q25 and 25.0% year-over-year, with margin expansion to 15.8% due to non-recurring gains from a sale and leaseback transaction.

• Adjusted and recurring EBITDA was R$51.2 million, up 28.1% sequentially, but down 51.0% year-over-year.

• Net loss totaled R$41.1 million, a 25.7% increase year-over-year, with a negative margin of 6.9%, impacted by higher financial expenses.

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 (+79.2% QoQ, +25.0% YoY); EBITDA margin: 15.8%.

• Adjusted and recurring 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 (net margin -14.2%).

• 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.

• Cash and equivalents: R$261.1 million.

Outlook and guidance

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

• Gross margin expected to remain above 37% in 2Q26 and through 2026, supported by price increases and improved mix.

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