Tupy (TUPY3) Q4 2025 earnings summary

Executive summary

• Net revenue declined 9% year-over-year to R$ 9.7 billion in 2025, mainly due to lower production and sales volumes amid global uncertainties and weak commercial vehicle demand.

• Adjusted EBITDA dropped 49% to R$ 661 million, with margin falling to 6.8%, and net loss reached R$ 655 million, impacted by R$ 544 million in restructuring-related write-downs.

• Strategic execution focused on capacity optimization, cost control, and new business growth, generating R$ 915 million in operating cash flow, the second highest in company history.

• MWM subsidiary improved EBITDA margin to 10%, up from 8% in 2024, despite a 3% revenue drop.

Financial highlights

• Q4 2025 revenue was R$ 2.2 billion, down 12% year-over-year, with full-year revenue at R$ 9.7 billion, reflecting lower sales and FX impacts.

• Gross margin dropped to 8% in Q4 and 12.6% for the year, impacted by lower production and inflationary pressures.

• Adjusted EBITDA margin for traditional business was 5% in 2025, down from 13% in 2024.

• Net debt at year-end was R$ 2.2 billion, with leverage at 3.35x EBITDA for the last 12 months.

• Operating expenses and SG&A fell 17% in Q4 and 7% for the year.

Outlook and guidance

• 2026 outlook is positive, with above-market growth expected from new project ramp-ups and recovery in freight markets, especially in North America and Europe.

• Strategic cycle aims to deliver R$ 600 million in new project revenues in 2026, with recurring EBITDA gains of R$ 180 million annually from 2027.

• Deleveraging expected from H2 2026, with no need to renegotiate covenant waivers.

• Ongoing capacity reduction and flexibility initiatives expected to yield R$ 100 million in savings in 2026.