Ultrapar (UGPA3) Q4 2025 earnings summary

Executive summary

• Achieved record recurring adjusted EBITDA for a fourth quarter and record operational cash flow of R$5.5 billion in 2025, reflecting strong operational execution, disciplined strategy, and lower working capital needs.

• Distributed R$1.4 billion in dividends for 2025, with a dividend yield of 7%, while maintaining a comfortable leverage ratio of 1.7x.

• Advanced regulatory and institutional agenda, including approval of persistent debtor and single-phase taxation for naphtha, measures to combat irregularities, and approval of "Gás do Povo".

• Completed key operational expansions and acquisitions, including Ultracargo's Rondonópolis base, a 37.5% stake in Virtual GNL, and the acquisition and integration of Hidrovias.

• Leadership transition completed, with new CEO and CFO, and implementation of Boards of Directors in businesses to enhance governance.

Financial highlights

• Net revenues reached R$142.5 billion in 2025, up 7% year-over-year, mainly driven by Ipiranga, Ultragaz, and consolidation of Hidrovias.

• Recurring adjusted EBITDA for 4Q25 was R$1.75 billion (+36% vs 4Q24); full-year recurring adjusted EBITDA was R$6.18 billion (+15% vs 2024).

• Net income for 2025 was R$2.54 billion, stable year-over-year, supporting strong dividend distribution.

• Operating cash flow reached a record R$5.5 billion in 2025 (+46% vs 2024), driven by higher operating results and consolidation of Hidrovias.

• CapEx totaled R$2.54 billion in 2025, up 15% year-over-year, mainly due to higher investments at Ipiranga and consolidation of Hidrovias.

Outlook and guidance

• Investment plan for 2026 set at up to R$2.6 billion, with R$1.1 billion allocated to expansion and the remainder to maintenance, efficiency, and safety.

• 2026 investments to prioritize branding, logistics, new energies, and productivity improvements.

• Company prepared to navigate a challenging global environment in 2026, emphasizing operational efficiency, financial discipline, innovation, and sustainable growth.

• Ultragaz anticipates stable performance and similar EBITDA in Q1 2026 as in Q1 2025.

• Ultracargo expects gradual recovery in demand and higher Q1 2026 volume and recurring EBITDA compared to Q4 2025.