Vulcabras (VULC3) Q1 2026 earnings summary

Executive summary

• Net revenue reached R$776.4 million in 1Q26, up 10.7% year-over-year, with gross volume of 7.6 million pairs/pieces, a 6.8% increase from 1Q25, driven by strong domestic market performance and brand portfolio expansion.

• Recurring EBITDA grew 11.8% to R$156.9 million, while recurring net income fell 18.9% to R$86.1 million, with net margin dropping 4.0 p.p. to 11.1%.

• Net income for the quarter was R$80.1 million, impacted by higher financial expenses and a R$6.0 million non-recurring write-off.

• Gross margin improved to 40.4% from 40.2% year-over-year, driven by higher sales and effective cost management.

• Maintained resilience despite a challenging retail environment with high promotional intensity.

Financial highlights

• Gross profit rose 11.2% to R$313.5 million, with gross margin at 40.4%.

• Recurring EBITDA margin expanded by 0.2 p.p. to 20.2%.

• Net financial result deteriorated to -R$27.8 million from R$2.3 million in 1Q25, with financial expenses rising to R$50.1 million.

• Net debt reduced to R$658.9 million as of March 31, 2026 (-14.4% vs. Dec 2025), and net debt/EBITDA (LTM) at 0.2x.

• Earnings per share (basic) were R$0.2562, down from R$0.3915 in Q1 2025.

Outlook and guidance

• Management projects continued revenue growth, supported by a CAGR of 7.88% for sales and 9.95% for net income through 2030.

• Order backlog for 2026 indicates strong demand, supported by recent product launches and portfolio evolution.

• Strategy for 2026 prioritizes financial deleveraging and operational efficiency.