Vulcabras (VULC3) Q2 2025 earnings summary

Executive summary

• Net revenue reached R$894.8 million in 2Q25, up 17.6% year-over-year, with 8.5 million pairs/pieces sold, a 4.1% increase from 2Q24.

• Net income surged 152.9% to R$353.3 million in 2Q25, with net margin improving by 21.1 p.p. to 39.5%, boosted by a non-recurring tax credit event.

• E-commerce revenue grew 33.8% year-over-year, now representing 14.8% of total net revenue.

• Domestic market net revenue rose 19.0% year-over-year, while foreign market revenue fell 10.4% due to challenges in Argentina and Peru.

• Announced additional R$300 million dividend and continued monthly distributions, totaling R$741 million in 2025.

Financial highlights

• Gross profit increased 12.9% to R$365.4 million in 2Q25; gross margin declined 1.7 p.p. to 40.8%.

• EBITDA rose 69.0% to R$296.4 million in 2Q25, with margin up 10.1 p.p. to 33.1%.

• Recurring EBITDA was R$190.8 million (+8.8% YoY); recurring net income was R$144.9 million (+3.7% YoY).

• Adjusted ROIC reached 32.0% in 2Q25, up from 18.4% in 2Q24; annualized ROIC at 28.5% in 2Q25-LTM.

• Net debt as of June 30, 2025: R$139.0 million, up from R$22.6 million at year-end 2024.

Outlook and guidance

• Management notes that future results may differ significantly due to economic, market, and industry uncertainties.

• Robust order books and accelerated retail sell-out support confidence in continued growth for the second half of 2025.

• Ongoing investments in innovation, portfolio expansion, and operational efficiency expected to sustain leadership in the Brazilian sports market.