Priner Serviços Industriais (PRNR3) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was R$421.197m, up 14.2% YoY; adjusted operating profit rose 37.1% to R$29.7m, while adjusted net loss was R$1.2m.

• Exceptional Iron Quadrangle rainfall temporarily halted nearly all mining operations; Oil & Gas and inspection work partly offset the disruption.

• New contracts reached R$1.42bn, taking LTM book-to-bill above 2.0x for the first time; reported net income included a R$60.913m Real Estruturas clawback gain.

Financial highlights

• Revenue was R$421.197m versus R$368.845m in Q1 2025; gross profit was R$64.021m versus R$73.840m, and gross margin was 15.2% versus 20.0%.

• Adjusted EBITDA was R$59.8m, up 49.1% YoY; adjusted EBITDA margin increased to 14.2% from 10.9%.

• Adjusted operating profit was R$29.7m, up 37.1% YoY; reported operating income was R$72.435m, including the acquisition-price adjustment gain.

• Reported net income was R$52.715m, including the R$60.913m clawback gain; adjusted net loss, excluding the clawback and intangible amortization, was R$1.2m.

• Operating cash flow was R$30.029m; investing and financing cash flows were outflows of R$36.490m and R$35.671m, respectively.

Outlook and guidance

• Rain-affected operations resumed during Q2 2026; gross-margin and per-capita indicators were expected to normalize as the rainy season ended.

• Adjusted annual SG&A, excluding depreciation and amortization, is expected not to exceed 9.5% of net operating revenue; nominal SG&A may rise.

• Recovery priorities include mining normalization, converting backlog into revenue, assembly-services recovery and SG&A discipline; the long-term ROIC target is at least 18%.

• Management expects asset maturation and stronger cash generation to support organic deleveraging and margin recovery; new awards may use leased and owned equipment.