Ultrapar Participações S.A.

Ultrapar reported recurring adjusted EBITDA of BRL 3.657 billion in the quarter. Net income was BRL 1.677 billion, the highest ever reported by the company, up BRL 527 million or 46% versus the second quarter of last year. Operating cash generation was BRL 4.789 billion, compared with BRL 939 million in the second quarter of 2025, and capex totaled BRL 570 million. Net debt was BRL 8.864 billion and leverage was 0.9x. Management said it approved BRL 1.85 billion in dividends for the first half, equal to BRL 1 per share, and a buyback of up to 18 million shares. Looking ahead, Ipiranga expects third-quarter margins to be below the second quarter and closer to first-quarter levels; Ultragaz expects third-quarter EBITDA around the third quarter of 2025; Ultracargo expects third-quarter market dynamics similar to the second quarter; and Hidrovias expects third-quarter performance in line with the third quarter of 2025.

Rodrigo Pizzinatto framed the quarter as another period of strong operational execution, cash generation, and discipline in capital allocation. He emphasized that the company is returning more cash through dividends and buybacks while still looking for attractive investments in existing and new businesses, but only where long-term returns make sense. On Ipiranga, he said the business is benefiting from a fairer competitive environment and that gains in volume and margin from the informal market disruption should carry forward, even if short-term Middle East effects fade.

Alexandre Palhares highlighted consolidated recurring adjusted EBITDA of BRL 3.657 billion and net income of BRL 1.677 billion, with the latter boosted by better operating results partly offset by higher depreciation, amortization and financial expenses, including Hidrovias consolidation. He pointed to record operating cash flow of BRL 4.789 billion, driven by strong operations, working-capital release mainly at Ipiranga, and BRL 833 million in supplier draft discounting to preserve liquidity. He also said capex was BRL 570 million, with lower spending at Ultracargo and Hidrovias and higher spending at Ultragaz and Ipiranga tied mainly to ERP implementation; net debt ended at BRL 8.864 billion and leverage at 0.9x.

Analysts focused on capital allocation, Ipiranga’s margin outlook, working capital, branding opportunities, and Ultragaz market share. Management said leverage comfort is around 1x to 1.5x EBITDA in volatile and high-rate conditions, and that if leverage moves outside that range the company may adjust buybacks or dividends. On Ipiranga, management said margins should normalize below the second-quarter level and closer to the first quarter, while working capital could rise if the import mix falls and because price swings of 10% can move working capital by about BRL 300 million. On branding, management said there are more requests for white-flag conversions and new station branding, but capital discipline remains unchanged; on Ultragaz, management attributed weaker bottled volumes and share loss to competitive dynamics and said it is focusing on reseller quality and recovery.