UGP

ULTRAPAR HOLDINGS INC. - 1Q26 Filing Summary

Business Context and Reporting Period

Company: ULTRAPAR HOLDINGS INC. (Ultrapar)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Quarter ended March 31, 2026
Filing Date: May 6, 2026
Operations: Ultrapar operates through four main segments: Ipiranga (fuel distribution), Ultragaz (LPG and energy), Ultracargo (liquid bulk storage), and Hidrovias (logistics and waterway infrastructure). Hidrovias was consolidated as a subsidiary starting May 2025.

Key Financial Metrics (Consolidated)

Material Changes vs. Prior Periods

• Revenue Growth: Net revenue increased 10% year-over-year (YoY) to R$ 36.8 billion, driven by higher volumes at Ipiranga and the full consolidation of Hidrovias. Revenue decreased 3% quarter-over-quarter (QoQ) due to lower Ipiranga volumes.
• Profitability Surge: Net income jumped 152% YoY to R$ 914 million. Recurring Adjusted EBITDA rose 96% YoY to R$ 2.3 billion, reflecting improved competitive conditions and Hidrovias consolidation.
• Financial Result: Net financial expenses increased to R$ 398 million (vs. R$ 180 million in 1Q25) due to higher net debt from Hidrovias consolidation and higher interest rates (CDI), partially offset by lower mark-to-market losses compared to 4Q25.
• Cash Flow: Operating cash flow improved significantly to R$ 1.1 billion from R$ 3 million in 1Q25. This was achieved despite a R$ 2.0 billion working capital investment at Ipiranga to secure fuel imports amid global volatility.
• Segment Performance:
  • Ipiranga: Recurring Adjusted EBITDA up 101% YoY to R$ 1.7 billion, driven by volume recovery and inventory gains from imported fuels.
  • Ultragaz: Recurring Adjusted EBITDA down 2% YoY to R$ 385 million due to higher LPG costs and seasonal volume declines.
  • Ultracargo: Adjusted EBITDA stable at R$ 165 million, with volumes up 11% YoY.
  • Hidrovias: Recurring Adjusted EBITDA down 29% YoY to R$ 182 million due to operational challenges in the North Corridor and the sale of the Coastal Navigation operation.

Guidance, Outlook, and Risks

• Outlook: Management highlights strong recurring results and financial strength. The company is focused on ensuring fuel supply in Brazil through increased imports despite international volatility.
• Investments: Total investments were R$ 558 million. Key projects include capacity expansions at Ultracargo (Rondonópolis and Opla) and technology upgrades at Ipiranga (ERP replacement).
• Risks & Contingencies:
  • Regulatory Investigation: The company is aware of a Federal Public Prosecutor's Office investigation ("Fisco Paralelo") regarding alleged ICMS tax credit schemes involving Ipiranga. No formal notification has been received, and management does not expect material financial impact at this stage.
  • Market Volatility: Geopolitical tensions and international oil price volatility continue to impact import costs and working capital requirements.
  • Covenants: Subsidiary Hidrovias did not comply with certain financial covenants (leverage ratio) as of March 31, 2026. This restricts new debt and mandatory dividends but does not trigger default or acceleration of debt repayment.

Key Facts for Investor Verification

• Consolidation Impact: Verify the full impact of Hidrovias consolidation on leverage and EBITDA, as it significantly altered the comparative baseline from 1Q25.
• Working Capital Dynamics: Monitor Ipiranga's working capital needs, which consumed significant cash due to higher import volumes and shorter payment terms, partially mitigated by R$ 1.15 billion in supplier draft discounts.
• Regulatory Status: Track the status of the "Fisco Paralelo" investigation to assess potential future provisions or reputational risks.
• Hidrovias Covenants: Review the specific restrictions on Hidrovias regarding new debt and dividend payments resulting from the covenant breach.
• Dividend Policy: Note the approval of R$ 1.41 billion in dividends for fiscal year 2025 (R$ 1.27 per share).