Q2 2026 Ultrapar Participacoes SA Earnings Call (English, Portuguese) Transcript
Key Points
- Record operating cash flow generation of BRL4.8 billion in Q2 2026, driven by strong operational performance and working capital release at Ipiranga.
- Leverage reduced to 0.9 times, the lowest level since 2008, reflecting strong cash generation and debt repayment.
- Net income reached a record BRL1.677 billion, up 46% year-over-year, supported by improved results across all businesses.
- Ipiranga gained 0.9 percentage points of market share, benefiting from government efforts to combat irregularities in the fuel distribution sector.
- Ultracargo completed its largest investment cycle, with new capacity coming online in Suape and Itaqui, supporting future growth.
- Ultrapar was included in the Dow Jones Best-in-Class Emerging Markets Index, highlighting its sustainability and governance standards.
- Ipiranga's EBITDA margin is expected to decline in Q3 2026, falling below Q2 levels and closer to Q1 levels due to reduced short-term benefits from the Middle East conflict.
- Ultragaz experienced a 3% decline in LPG volumes, with a 4% drop in the Bottled segment and 2% in Bulk, reflecting lower market demand and competitive pressures.
- Ultracargo faced a less favorable sales mix due to a higher share of inland bases, which have higher turnover but lower average prices, impacting profitability.
- Hidrovias' recurring EBITDA declined 8% year-over-year, partly due to the sale of its coastal navigation operation, and continuing operations saw a 1% decrease.
- Working capital remains sensitive to fuel price volatility, with a 10% price change potentially impacting working capital by BRL300 million, creating uncertainty.
- The Middle East conflict continues to introduce volatility and supply chain disruptions, requiring rapid adjustments and impacting import windows and margins.
Good morning. Thank you for waiting. Welcome to the earnings release call of Ultrapar to discuss the results referring to the second quarter of 2026. The presentation will be conducted by Mr. Rodrigo Pizzinatto, CEO of Ultrapar; and by Mr. Alexandre Palhares, CFO of Ultrapar.
The question-and-answer session will also have Mr. Leonardo Linden, CEO of Ipiranga; Mr. Tabajara Bertelli, CEO of Ultragaz; and Mr. Fulvius Tomelin, CEO of Ultracargo.
This call is being recorded and will be accessed through the website, ir.ultra.com.br. After the presentation, we are going to start the question-and-answer session when further instructions will be provided.
We'd also like to let you know that this earnings release call will be conducted in Portuguese and there is an option for simultaneous translation available by clicking on interpretation. For those listening to the call in English, there is the option of muting original audio. The presentation will be shown in Portuguese, and there is a version in English available for download at the company's website or through the chat.
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