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 domestic demand impacted by macroeconomic and political uncertainties in Brazil and the U.S.

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

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

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

• Strategic focus remained on resource optimization, deleveraging, and sustainable value creation, with continued execution of the strategic plan.

Financial highlights

• Consolidated net revenue reached R$3.1 billion, down 3.4% year-over-year, with gross revenue at R$3.6 billion and gross profit of R$821.3 million (26.6% margin).

• Adjusted EBITDA was R$370.4 million (12.0% margin), down 12.9% year-over-year, and net income was negative R$47.6 million.

• International market revenues totaled US$199.0 million, up 8.3% year-over-year, but declined 2.7% in BRL due to currency appreciation.

• Net leverage (ex-Bank) improved to 3.17x, with net debt reduced to R$6.1 billion.

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

Outlook and guidance

• Stable demand for auto parts and a strong trailer order backlog are expected for 2Q26, with normalization of deliveries and aftermarket revenue at Frasle Mobility.

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

• Rail wagon supply contracts extend through November 2027, and new U.S. container orders (1,200 units) support future revenue.

• Continued focus on cost discipline, working capital optimization, and deleveraging.

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