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, and 6M25 revenue totaled R$1,596.0 million, up 17.5% year-over-year.

• 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; H1 2025 net income was R$459.3 million.

• 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).

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

• The company operates in footwear, apparel, and accessories, managing both own and licensed brands, with manufacturing concentrated in Brazil and sales in domestic and foreign markets.

Financial highlights

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

• Domestic market net revenue rose 19.0% year-over-year, while foreign market revenue fell 10.4%.

• Operating cash flow was R$223.6 million in H1 2025, down from R$329.3 million in H1 2024.

• Total assets increased to R$3,348.4 million from R$2,993.3 million at year-end 2024.

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

Outlook and guidance

• Management projects continued revenue growth, with sales CAGR of 7.98% and net income CAGR of 12.16% through 2029, based on internal forecasts.

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

• No impairment indicators identified; value in use of assets remains significantly above book value.

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