Taurus Armas (TASA4) Q2 2026 earnings summary

Executive summary

• Net operating revenue for 2Q26 was R$360.9 million, down 10.3% year-over-year but up 1.7% sequentially; 1H26 revenue was R$715.8 million, a 4.8% decrease from 1H25.

• Gross profit in 2Q26 reached R$123.6 million (34.2% margin), a 19.1% decline year-over-year, but a 23.5% increase from 1Q26.

• Net income for 2Q26 was R$97.4 million, up 193.4% year-over-year and a reversal from a net loss in 1Q26; 1H26 net income was R$60.8 million, up 17.4% from 1H25.

• EBITDA for 2Q26 was R$124.8 million (34.6% margin), a 153.7% increase year-over-year, mainly due to the R$91.1 million U.S. tariff refund.

• Net debt decreased by R$145.9 million in 1H26, closing at R$426.1 million, with a Net Debt/EBITDA ratio of 2.76x at quarter-end.

Financial highlights

• Firearms & accessories accounted for 89.9% of 2Q26 revenues; U.S. market share declined to 76.2% of segment revenue, while Brazil increased to 13.8%.

• Average selling price per firearm in 2Q26 was R$1,340.38, up 1.3% sequentially but down 4.5% year-over-year due to currency effects.

• Operating expenses in 2Q26 dropped 86.7% year-over-year, mainly due to a R$91.1 million refund of U.S. import tariffs recognized as other operating income.

• Financial results turned negative in 2Q26 with net financial expenses of R$8.6 million, mainly due to lower FX gains.

• Cash and equivalents at quarter-end were R$33.6 million; total assets stood at R$2.43 billion.

Outlook and guidance

• Management expects the U.S. tariff rate to remain at 37.5% and is considering further operational adjustments, including increased U.S. assembly and transfer pricing changes.

• Order backlog across the U.S., Brazil, and other countries exceeded R$600 million, providing strong visibility for future operations.

• Focus remains on expanding revenue share from Brazil and other international markets, mitigating tariff impacts, and sustaining competitiveness.

• The company is monitoring new U.S. tariff developments and is prepared to adapt its production and pricing strategies as needed.