Tupy (TUPY3) investor relations material

Executive summary

• New CEO prioritized operational discipline, asset optimization, automation, and value creation, focusing on profitable growth and margin expansion.

• Sequential improvement in results driven by volume recovery, operational efficiency, and disciplined execution, though still below prior-year levels.

• Strategic expansion and new contracts are expected to contribute over R$600 million in 2026 revenue, with R$250 million already recognized in 1H26.

• Industrial footprint optimization, including shift reductions and production relocations, generated R$40 million in gains in 1H26, with further benefits targeted.

• Management remains focused on standardizing best practices and leveraging internal strengths to drive future performance.

Financial highlights

• Net revenue for 2Q26 was R$2.5 billion, down 6% year-over-year, but up 7% sequentially from 1Q26.

• Adjusted EBITDA reached R$156 million (6.3% margin), down 26% year-over-year, but up 57% from 1Q26.

• Net loss was R$11 million in 2Q26, compared to net income of R$24 million in 2Q25.

• Operating cash flow was R$303 million, up 185% year-over-year, driven by working capital management and inventory reduction.

• Net debt stood at R$1.9 billion, down 26% year-over-year and 8% sequentially.

Outlook and guidance

• Management expects a stronger second half, especially in international markets, with robust order books and new contracts ramping up.

• Margin recovery targeted through operational leverage, cost discipline, and commercial renegotiations to offset currency impacts.

• Leverage is expected to fall below 2.5x by year-end, supported by volume recovery and working capital improvements.

• Two-digit EBITDA margin remains a goal for H2 2026, supported by market recovery and internal efficiency actions.

• Priorities include ramp-up of new contracts, completion of capacity optimization, and continued operational efficiency.