Companhia Brasileira de Distribuicao (PCAR3) Q1 2026 earnings summary

Executive summary

• Filed and negotiated an out-of-court (extrajudicial) restructuring plan, targeting BRL 4.6 billion in unsecured non-operational debt reduction and maturity extension, with BRL 2.3 billion due in 2026.

• Secured support from over 57% of eligible creditors, exceeding the legal minimum for court approval.

• Management consolidated with experienced leadership and a board representing 75% of the shareholder base.

• Prioritized financial reorganization, operational efficiency, and customer experience improvements.

• Operations and customer experience preserved during restructuring.

Financial highlights

• Gross margin expanded to 30.4%, up 2.9 percentage points year-over-year, driven by sales mix, tax credits, and product exclusions from ICMS-ST.

• Adjusted EBITDA margin rose to 10.5%, up 1.9 p.p. year-over-year.

• Operating free cash flow after CapEx reached BRL 522 million, up 65.2% year-over-year.

• CapEx for 1Q26 was BRL 87 million, a 55% reduction, aligning with the annual target range.

• Adjusted net loss from continued operations was BRL (333) million; reported net loss was BRL (1,347) million, impacted by BRL (1,014) million in non-recurring, non-cash effects.

Outlook and guidance

• CapEx guidance for 2026 set between BRL 300 million and BRL 350 million.

• Efficiency plan aims to capture at least BRL 415 million in cost and expense reductions in 2026.

• Restructuring plan expected to increase average debt maturity from 2.1 to 6.4 years and reduce average cost of debt to CDI + 0.5% per year.

• Net financial debt could fall to BRL 822 million, a 74.3% reduction from Q1 2026 pro forma; pro forma leverage projected at 0.9x, down from 3.6x.

• No new store openings planned for upcoming quarters.