Q2 2026 Marcopolo SA Earnings Call (English, Portuguese) Transcript
Key Points
- Consolidated net revenue grew 3% year-over-year in Q2 2026, with Brazilian operation revenue up 11.3% and exports up 16.2%.
- Market share in the Brazilian operation increased to 48.3% in Q2 2026, up from 46% in Q1 2026.
- Microbus segment saw strong growth, with revenue up 122% and representing 42.5% of total volume, driven by government programs like Path to School and Ministry of Health.
- Australian operation delivered consistent growth of 22.5%, with a strong backlog and market leadership in city buses.
- Company maintains a disciplined capital allocation strategy with a 50% payout ratio and continues investing in new products and technologies, including electric and hybrid buses.
- Repressed demand for buses in Brazil is significant, with an aging fleet (over 50% of coaches over 6 years old), presenting future opportunities for fleet renewal.
- EBITDA margin dropped 3 percentage points quarter-on-quarter due to a lighter product mix, with higher concentration of lower-margin microbuses.
- Gross margin fell 3.8 percentage points quarter-on-quarter, impacted by pre-agreed prices on microbus contracts that were not adjusted for inflation.
- International operations revenue declined 16% quarter-on-quarter, with significant drops in Argentina and Mexico due to macroeconomic challenges and reduced demand.
- City bus and coach segments saw production declines of 15% and 18-19% respectively year-over-year, reflecting weak fleet renewals.
- The company faces uncertainty in the fourth quarter backlog, with international operations showing no clear recovery signs, and profitability remains dependent on several variables.
- Tax reform is expected to increase tax costs for buses, potentially raising prices and impacting demand, especially for city buses.
Good morning everyone. Welcome to APMEQ Brazil's 2026 meeting of Michael Palo regarding the results of the second quarter of 2026. Today's presentations and remarks will be delivered by Andrea Armaganjan, CEO, Pablo Moda, CFO and Investor Relations Officer, Eridardo Bilrich, Legal and Investor Relations Manager.
Representing APMAC, we are going to have Ricardo Tadeo Matias, Executive President. Please note that simultaneous interpretation is available on this call. Simply click the interpretation button at the bottom of your screen and select English.
This conference is being recorded and will be made available on the company's investor relations website, ri.macopabo.com.br, along with the presentation materials shared today. All participants.
Will be in listen-only mode during the presentation. The Q&A questions will be only for those that are here in person. Before we proceed, we would like to remind you that any forward-looking statements made during this call are based on Marco Polo's management current beliefs and assumptions and on information currently available to
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