PBG (PTBL3) Q3 2025 earnings summary

Executive summary

• Net revenue reached R$ 685.1 million in 3Q25, up 3.5% year-over-year, with exports growing 5.0% despite challenging U.S. tariffs and logistics constraints; all business units showed resilience and solid operating results.

• Excluding the U.S. tariff impact, net revenue would have grown approximately 9% and EBITDA margin would have approached 15%.

• Free cash flow for the quarter was R$ 68.5 million, with a cash balance of R$ 247.1 million, reflecting robust liquidity and disciplined cash management.

• Pro forma net loss of R$ 34.7 million, mainly due to higher financial expenses in a restrictive macroeconomic environment.

• U.S. operations delivered margin gains and strategic importance for international expansion, while Brazilian operations ran at full capacity, focusing on higher value products and efficiency.

Financial highlights

• Consolidated net revenue: R$ 685.1 million in 3Q25 (+3.5% YoY); adjusted for tariffs, R$ 720.5 million (+8.9% YoY).

• Adjusted and recurring EBITDA: R$ 103.9 million in 3Q25 (14.4% margin); pro forma net loss: R$ 34.7 million.

• Gross margin: 36.9% in 3Q25, down 1.4 p.p. YoY, reflecting tariff and market pressures.

• Net debt: R$ 944.1 million at quarter-end, with pro forma leverage at 2.42x EBITDA; 82% of debt is long-term.

• Cash and equivalents: R$ 247.1 million, up from R$ 181.0 million in 3Q24.

Outlook and guidance

• Management expects continued operational resilience and profitability, focusing on deleveraging, cash generation, and preparing for a new growth cycle in 2026.

• Strategic initiatives include cost control, administrative efficiency, and portfolio innovation, with efficiency gains targeted through consultancy-led projects.

• No market growth expected in Brazil or the U.S. for 2025 and 2026; focus remains on gaining market share and internationalization, especially in the U.S.