Blau Farmacêutica (BLAU3) Q2 2026 earnings summary

Executive summary

• Net revenue grew 10% year-over-year in 1H26 to BRL 922 million, driven by the hospital segment and new product launches, despite challenging macroeconomic conditions and high interest rates.

• Recurring EBITDA increased 12% to BRL 230 million in 1H26, with margin expansion supported by operational efficiency and favorable sales mix.

• Gross margin expanded to 42.6% in 1H26, up 240bps year-over-year, reflecting efficiency gains.

• Recurring net income excluding FX grew 18% to BRL 134 million; including FX, recurring net income was BRL 107 million, down 15%.

• Strong cash generation resulted in a net cash position of BRL 64 million at 2Q26, with operational cash flow 2.4x higher than 1H25.

Financial highlights

• Net revenue: BRL 922 million in 1H26 (+10% YoY); hospital segment contributed 88%, retail + aesthetics 12%.

• Gross margin: 42.6% in 1H26 (+240bps YoY); recurring EBITDA margin: 24.9% in 1H26 (+40bps YoY).

• Free cash generation in 2Q26 was BRL 81 million, reversing negative cash flow in 1Q26; free cash flow for 1H26 was BRL 70 million.

• Working capital improved to 50.8% of revenue in 2Q26, with inventory reduction for the third consecutive quarter.

• Net cash position: BRL 64 million at 2Q26, leverage ratio at -0.2x.

Outlook and guidance

• Revenue growth is expected to accelerate in 2H26, supported by new production lines, product launches, and a favorable comparison base.

• Gross margin is anticipated to remain strong, with further EBITDA margin improvement expected from operational leverage and expense dilution.

• CapEx for the year is expected to align with cash generation, focusing on clinical trials, biologicals, packaging, and innovation.

• Inventory days targeted to reduce to 180, contingent on new line approvals and commercialization.

• Medium-term plans include launching the first monoclonal antibody and expanding biotech API production.