Ultrapar (UGPA3) Q2 2025 earnings summary

Executive summary

• Achieved strong operating cash flow of R$1.8 billion, with R$0.9 billion used to reduce draft discount, reflecting disciplined working capital management.

• Consolidated Hidrovias do Brasil as a controlled subsidiary since May 2025, contributing to record results and future growth potential.

• Net income rose 134% year-over-year to R$1.2 billion in Q2 2025, driven by extraordinary ICMS tax credits at Ipiranga.

• Completed major projects at Ultracargo, including the Paulínia (Opla) railway branch and ramp-up of Palmeirante operations, expanding agribusiness exposure.

• Concluded buyback of 25 million shares at R$16.64 average price and raised R$1 billion at Ipiranga at a cost below average debt.

Financial highlights

• Net revenue reached R$34.1 billion in Q2 2025 (+5% year-over-year), with consolidated net revenue of R$67.4 billion for H1 2025.

• Total EBITDA was R$2.1 billion in Q2 2025 (+55% year-over-year), with recurring adjusted EBITDA at R$1.5 billion (+15% year-over-year).

• Net income was R$1.2 billion in Q2 2025 (+134% year-over-year), and R$1.42 billion for H1 2025.

• CapEx for Q2 2025 was R$544 million (+14% year-over-year), mainly due to Hidrovias investments.

• Cash and cash equivalents at period end were R$2.9 billion, with total assets of R$45.6 billion.

Outlook and guidance

• Expect seasonally stronger volumes and higher recurring EBITDA in Q3 for Ipiranga, Ultragaz, and Hidrovias do Brasil.

• Management expects continued integration of Hidrovias and further operational synergies.

• Dividend distribution of R$326 million (R$0.30/share) approved post-period, reflecting confidence in cash generation.

• Ongoing review of LPG sector regulation by ANP, with potential impacts on investment and safety standards.

• Strategic focus on operational efficiency, capital cost optimization, and infrastructure investments.