Randoncorp (RAPT4) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q26 was R$3.1 billion, down 3.4% year-over-year, mainly due to lower aftermarket and trailer sales, with challenging macroeconomic and geopolitical conditions impacting demand in Brazil and the US.

• Adjusted EBITDA reached R$370.4 million (12.0% margin), a 12.9% decrease year-over-year, reflecting weaker Motion/Movement Control performance and negative equity results in Financial Solutions.

• Net loss was R$47.6 million, with a net margin of -1.5%, impacted by higher financial expenses and effective tax rate.

• Strategic milestones included the inauguration of the Suspensys Mogi Guaçu plant, expansion of AXN Automotive Systems in the US, logistics automation at Frasle Mobility, and ERP migration.

• Focus remained on operational efficiency, deleveraging, and value creation.

Financial highlights

• Net revenue declined 3.4% year-over-year to R$3.1 billion, with gross profit stable at R$821.3 million (26.6% margin).

• Adjusted EBITDA margin fell 1.3 p.p. to 12.0%, and net loss increased 520.6% year-over-year.

• International market revenues in USD grew 8.3% year-over-year, but declined in BRL due to currency appreciation; international sales represented about 33% of total revenue.

• Net debt decreased 23.7% year-over-year to R$6.1 billion; net leverage (ex-Bank) improved to 3.17x.

• ROIC dropped to 3.8% (down 407 bps year-over-year), and ROE was -9.0%.

Outlook and guidance

• 2026 guidance maintained: net revenue R$12.5–14.0 billion, adjusted EBITDA margin 12–14%, international revenue US$780–840 million, and organic investments R$380–420 million.

• Stable demand for auto parts and a strong trailer order backlog expected in 2Q26, with new railcar and container chassis orders in the US.

• Focus remains on working capital optimization, disciplined investments, deleveraging, and value creation.

• Cautious outlook due to persistent high interest rates, geopolitical conflicts, and economic uncertainty.

• Anticipates potential upside from events like Fenatran and continued positive effects from the Move Brasil program.