Schulz (SHUL4) Q2 2025 earnings summary

Executive summary

• Achieved significant operational and financial advances in 2Q25, driven by market diversification, product innovation, and disciplined capital allocation.

• Net revenue grew 6% in 2Q25 to R$538.5M and 7% in 1H25 to R$1.03B, with EBITDA of R$90.8M in 2Q25 and R$175.8M in 1H25.

• Net income rose 5% year-over-year in 2Q25 to R$74M and 11% in 1H25 to R$145.6M, with a 14% net margin.

• Automotive division faced domestic truck market contraction but saw recovery in agricultural and construction machinery; compressors division posted solid growth and successful product launches.

• Strategic acquisition and integration of UPI Fundição de Ferro and Janus & Pergher expanded capacity and product portfolio.

Financial highlights

• Net revenue: R$538.5M in 2Q25 (+6% YoY), R$1.03B in 1H25 (+7% YoY).

• Gross profit: R$136.3M in 2Q25 (-2% YoY), margin 25%; R$263.8M in 1H25 (+6% YoY), margin 26%.

• EBITDA: R$90.8M in 2Q25 (-10% YoY), margin 17%; R$175.8M in 1H25 (-4% YoY), margin 17%.

• Net income: R$74M in 2Q25 (+5% YoY), R$145.6M in 1H25 (+11% YoY), net margin 14%.

• Operating cash flow: R$118.8M in 1H25 (-40% YoY); net cash position of R$98.3M (+66% vs. Dec/24).

• Total assets: R$2.81B (+8% vs. Dec/24); equity: R$1.51B (+6% YoY).

Outlook and guidance

• Management expects continued growth in compressors and gases, with ongoing investments in innovation and sustainability.

• Cautious outlook for domestic heavy truck market due to high credit costs and limited financing; moderate growth expected in international markets.

• Expansion in biogas, biometano, and industrial gases seen as key growth drivers.