Aeris Indústria e Comércio de Equipamentos para Geração de Energia (AERI3) investor relations material

Executive summary

• Global wind power installations reached a record 165 GW, with China contributing 73%, but future growth is expected to shift toward Europe and North America due to energy security needs and infrastructure expansion.

• 1Q26 results reflect continued industry headwinds, with lower volumes, underutilized production capacity, and only two mature production lines operating, though four more are planned for reactivation as demand recovers.

• Net operating revenue in 1Q26 was R$105.6 million, down 7.8% from 4Q25 and nearly 50% year-over-year, reflecting weak domestic demand partially offset by export growth.

• 1.4 GW of wind blade supply contracts secured for 2026/2027, with a 0.7 GW pipeline under negotiation and phased reactivation of four production lines planned.

• Delivery of 90 blade sets over the last 12 months, a significant reduction from prior years, but expectations are for volumes to exceed 500 blades as demand recovers.

Financial highlights

• Net revenue in 1Q26 was R$105.6 million, down 7.8% sequentially and 47–49.8% year-over-year.

• Adjusted EBITDA was negative R$27.4–27.5 million (margin -26%), but improved sequentially.

• Net loss for the quarter was R$138 million, a significant improvement versus 4Q25.

• Operating expenses fell significantly quarter-over-quarter, aided by cost reductions and absence of prior non-recurring impairment.

• Export revenues grew, partially offsetting domestic weakness, with international blade sales up 237.6% YoY.

Outlook and guidance

• Four production lines are being reactivated, with a backlog of 1.4 GW under contract and 0.7 GW under negotiation.

• Full ramp-up to 100 blades/month expected by Q3/Q4, with 1.4 GW project deliveries targeted by end-2027.

• Management expects improved margins in H2 2026 as new contracts with better terms are executed, especially in Europe.

• Gradual recovery in domestic demand and operational efficiency gains anticipated as production lines are reactivated.

• No specific cash flow guidance provided, but gradual recovery in profitability is anticipated as capacity utilization rises.