Tupy (TUPY3) Q1 2026 earnings summary

Executive summary

• Net revenue reached BRL 2.3 billion, down 7% year-over-year, mainly due to lower sales volumes and currency appreciation, partially offset by new contracts and growth in Manufacturing Contracts and Energy & Decarbonization units.

• Adjusted EBITDA fell 60% to BRL 99 million (4.3% margin), with net loss of BRL 94 million, impacted by lower volumes and adverse FX, but partially offset by efficiency gains and a better product mix.

• Record operating cash flow for a first quarter at BRL 198 million, driven by working capital improvements and inventory reductions.

• New contracts contributed BRL 100 million in revenue, with expectations to exceed BRL 600 million in 2026.

• Market recovery visible in commercial vehicles in the U.S. and Europe, with order books exceeding budget and OEMs revising forecasts upward.

Financial highlights

• Gross margin at 10.1%, pressured by lower production volumes and cost inflation.

• Financial expenses up 10% year-over-year; financial revenues up 38%.

• Net debt at BRL 2.1 billion, down 18% year-over-year; leverage at 4.02x adjusted EBITDA.

• Cash and cash equivalents at quarter-end: BRL 1.82 billion.

• Investments in PP&E and intangibles totaled BRL 64 million, up 3% year-over-year.

Outlook and guidance

• Q2 expected to improve sequentially, with ramp-up of new contracts and market recovery.

• Full-year revenue from new contracts projected at BRL 600 million or more.

• Double-digit EBITDA margin targeted for the second half of 2026, driven by volume and efficiency.

• Structural gains from synergy plan expected to deliver BRL 100 million in 2026 and BRL 180 million annually from 2027.

• Stronger market expected for 2027, with sustained demand in North America.