PBG (PTBL3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$686.8 million in 2Q25, up 16.6% year-over-year, with growth across all business units, driven by Portobello America, export consolidation, and resilient Brazilian operations despite macroeconomic challenges.

• Adjusted EBITDA rose 44.8% to R$101.1 million, with a margin of 14.7%, reflecting revenue growth, margin stability, and disciplined operating expense control.

• Free cash flow generation was R$63.4 million, a significant increase from R$6 million in 2Q24, supported by efficient working capital management and use of FIDCs.

• Adjusted net loss was R$38.3 million, mainly due to one-off financial expenses related to short-term liquidity measures.

• Net debt closed at R$890.8 million, with proforma leverage at 2.3x and a cash position of R$286.7 million.

Financial highlights

• Consolidated gross profit increased 17.4% to R$252.4 million, with a recurring gross margin of 36.7%.

• Adjusted and recurring EBIT grew 89.9% to R$49.7 million, with a margin of 7.2%.

• Proforma EBITDA margin improved by 2.9 p.p. to 14.7% in 2Q25.

• Financial expenses rose 51.5% to R$92.6 million, mainly due to high interest rates and increased use of structured financing.

• Cash conversion cycle improved to 6 days from 40 days in 2Q24.

Outlook and guidance

• U.S. import tariffs on Brazilian products effective August 2025 are expected to have limited impact due to Portobello America's local manufacturing, positioning the company for competitive advantage in North America.

• Management remains focused on innovation, cash generation, international expansion, and sustainable profitability.

• The company completed a R$300 million debenture issue in June 2025 to extend debt maturity and strengthen liquidity.