Q2 2026 Metalfrio Solutions SA Earnings Call
Speaker #1: Hello everyone, and welcome to the webcast related to the results of the second quarter of 2026 for metal-fueled solutions SA. I will start doing a few comments about the period, and then we'll move on to a set of slides that is made available for you at our website.
Luiz Caio: Hello everyone, and welcome to the webcast related to the results of Q2 2026 for Metalfrio Solutions SA. I will start doing a few comments about the period, and then we move on to a set of slides that is made available for you at our website. The H2 has traditionally been the highest performing seasonal quarter for our industry globally, and it appears that this trend will continue this year. As a result, the company is reporting exceptional performance across all regions. Net revenues reached BRL 737 million, a 5.1% increase compared to the previous year, 2025. Additionally, the company achieved BRL 1.34 billion in revenues for the H1, marking a 7.9% growth. However, the growth in revenue has been uneven across different regions.
[Company Representative] (Metalfrio Solutions): Hello everyone, and welcome to the webcast related to the results of Q2 2026 for Metalfrio Solutions SA. I will start doing a few comments about the period, and then we move on to a set of slides that is made available for you at our website. The H2 has traditionally been the highest performing seasonal quarter for our industry globally, and it appears that this trend will continue this year. As a result, the company is reporting exceptional performance across all regions. Net revenues reached BRL 737 million, a 5.1% increase compared to the previous year, 2025. Additionally, the company achieved BRL 1.34 billion in revenues for the H1, marking a 7.9% growth. However, the growth in revenue has been uneven across different regions.
Speaker #1: The second semester has traditionally been the highest-performing seasonal quarter for our industry globally, and it appears that this trend will continue this year. As a result, the company is reporting exceptional performance across all regions.
Speaker #1: Net revenues reached $737 million, a 5.1% increase compared to the previous year, 2025. Additionally, the company achieved $1.34 billion in revenues for the first semester, marking a 7.9% growth.
Speaker #1: However, the growth in revenue has been uneven across different regions, while the Americas benefited from significant placements of key accounts for the FIFA World Cup, EMEA has been focused on right-sizing its business to improve profitability.
[Company Representative] (Metalfrio Solutions): While the Americas benefited from significant placements of key accounts for the FIFA World Cup, EMEA has been focused on right-sizing its business to improve profitability. South America, on its turn, experienced a 22.6% increase in revenue for the quarter and a 17.7% increase for the semester. The company has maintained a health balance between key accounts and non-key accounts, which has allowed for sustainable growth throughout the year. This growth is projected to continue in the following months in this region. The company has launched several new products in South America during the period. Services related to life cycle, Begur, and 3L have grown by an impressive 9% quarter-over-quarter, demonstrating their strength and potential for further growth. North America has been the company's top performer in terms of revenue growth this year, as you have already noticed.
Luiz Caio: While the Americas benefited from significant placements of key accounts for the FIFA World Cup, EMEA has been focused on right-sizing its business to improve profitability. South America, on its turn, experienced a 22.6% increase in revenue for the quarter and a 17.7% increase for the semester. The company has maintained a health balance between key accounts and non-key accounts, which has allowed for sustainable growth throughout the year. This growth is projected to continue in the following months in this region. The company has launched several new products in South America during the period. Services related to Life-Cycle, Begur, and 3L have grown by an impressive 9% quarter-over-quarter, demonstrating their strength and potential for further growth. North America has been the company's top performer in terms of revenue growth this year, as you have already noticed.
Speaker #1: South America on its turn experienced a 22.6% increase in revenue for the quarter, and a 17.7% increase for the semester. The company has maintained a healthy balance between key accounts and non-key accounts, which has allowed for sustainable growth throughout the year.
Speaker #1: This growth is projected to continue in the following months in this region. The company has launched several new products in South America, during the period.
Speaker #1: Services related to life cycle, be good, and 3L have grown by an impressive 9%, quarter over quarter, demonstrating their strength and potential for further growth.
Speaker #1: North America has been the company's top performer in terms of revenue growth this year, as you have already noticed. So the company achieved a quarter-over-quarter revenue growth of 41.8% there, and a semester-over-semester growth of 39.6%.
[Company Representative] (Metalfrio Solutions): The company achieved a quarter-over-quarter revenue growth of 41.8% there, and a semester-over-semester growth of 39.6%. However, the company's sales were quite concentrated in the H1 as compared to other regions in the Americas, which may lead to a landing to lower sales volumes in the H2. EMEA has successfully recovered profitability by prioritizing better deals, even at the expense of sales volumes. The Turkish organization faced challenges due to conflicts in the Middle East, which resulted in virtually zero sales volumes in that region. Despite this setback, the company managed to deliver a solid EBITDA of BRL 35.6 million, with a margin of 12.1% in Q2, and a robust net profit even though revenues declined by 17.7%. The company achieved overall success by effectively utilizing the results of its sales growth of 5.1%.
Luiz Caio: The company achieved a quarter-over-quarter revenue growth of 41.8% there, and a semester-over-semester growth of 39.6%. However, the company's sales were quite concentrated in the H1 as compared to other regions in the Americas, which may lead to a landing to lower sales volumes in the H2. EMEA has successfully recovered profitability by prioritizing better deals, even at the expense of sales volumes. The Turkish organization faced challenges due to conflicts in the Middle East, which resulted in virtually zero sales volumes in that region. Despite this setback, the company managed to deliver a solid EBITDA of BRL 35.6 million, with a margin of 12.1% in Q2, and a robust net profit even though revenues declined by 17.7%. The company achieved overall success by effectively utilizing the results of its sales growth of 5.1%.
Speaker #1: However, the company's sales were quite concentrated in the first semester, as compared to other regions in the Americas, which may lead to a landing to lower sales volumes in the second semester.
Speaker #1: EMEA has successfully recovered profitability by prioritizing better deals, even at the expense of sales volumes. The Turkish organization faced challenges due to conflicts in the Middle East, which resulted in virtually zero sales volumes in that region.
Speaker #1: Despite this setback, the company managed to deliver a solid EBITDA of 35.6 million, real, with a margin of 12.1% in the second quarter, and a robust net profit even though revenues declined by 17.7%.
Speaker #1: The company achieved overall success by effectively utilizing the results of its sales growth of 5.1%. This growth, coupled with strict cost control, resulted in a remarkable EBITDA growth of 23.1% and a net profit growth of 20.5%.
[Company Representative] (Metalfrio Solutions): This growth, coupled with strict cost control, resulted in a remarkable EBITDA growth of 23.1% and a net profit growth of 20.5%. These positive financial indicators, combined with effective cash management, enabled the company to witness a significant increase in shareholders' equity, rising from BRL 439 million to BRL 492 million. We do remain optimistic about maintaining this level of execution, given the promising outlook for the company's year-end performance. Now I invite you to follow the set of slides that's made available on our website, which I will use as a basis to address additional comments to those that I made in my early remarks. Starting with slide number 2, my initial comment goes to the last column of the numbers down below this slide, where you see the quality of the results.
Luiz Caio: This growth, coupled with strict cost control, resulted in a remarkable EBITDA growth of 23.1% and a net profit growth of 20.5%. These positive financial indicators, combined with effective cash management, enabled the company to witness a significant increase in shareholders' equity, rising from BRL 439 million to BRL 492 million. We do remain optimistic about maintaining this level of execution, given the promising outlook for the company's year-end performance. Now I invite you to follow the set of slides that's made available on our website, which I will use as a basis to address additional comments to those that I made in my early remarks. Starting with slide number two, my initial comment goes to the last column of the numbers down below this slide, where you see the quality of the results.
Speaker #1: These positive financial indicators combined with effective cash management enabled the company to witness a significant increase in shareholders' equity, rising from $439 million to $492 million.
Speaker #1: We do remain optimistic about maintaining this level of execution given the promising outlook for the company's year-end performance. So now I invite you to follow the set of slides that's made available on our website.
Speaker #1: Which I will use as a basis to address additional comments to those that I made in my early remarks. So starting with slide number 2, my initial comment goes to the last column of the numbers down below this slide, where you see the quality of the results.
Speaker #1: So net revenues in the semester improved by 7.9%, whereas gross profit went up 18.5%, EBIT 46.1%, and EBITDA 32.9%. Not to mention a extravagant growth of net profit by 186%.
[Company Representative] (Metalfrio Solutions): Net revenues in the H1 improved by 7.9%, whereas gross profit went up 18.5%, EBIT 46.1%, and EBITDA 32.9%. Not to mention an extravagant growth of net profit by 186%. Gross profit went up to 18.9% in the quarter and 19.1% in the H1. EBITDA margin went up to 13.8% in the quarter and 13.4% in the H1. Net profit accumulated for the year reached BRL 51.8 million. In slide 3 and 4, we show the breakdown of revenues per region comparing quarter-on-quarter and H1 on H1, where you can see that South America and Central America really contributed to the growth of the whole company in the period.
Luiz Caio: Net revenues in the this semester improved by 7.9%, whereas gross profit went up 18.5%, EBIT 46.1%, and EBITDA 32.9%. Not to mention an extravagant growth of net profit by 186%. Gross profit went up to 18.9% in the quarter and 19.1% in the H1. EBITDA margin went up to 13.8% in the quarter and 13.4% in the H1. Net profit accumulated for the year reached BRL 51.8 million. In slide 3 and 4, we show the breakdown of revenues per region comparing quarter-on-quarter and H1 on H1, where you can see that South America and Central America really contributed to the growth of the whole company in the period.
Speaker #1: Gross profit went up to 18.9% in the quarter, and 19.1% in the semester. EBITDA margin went up to 13.8% in the quarter, and 13.4% in the semester.
Speaker #1: And net profit accumulated for the year reached 51.8 million. In slide number 3 and 4, we show the breakdown of revenues per region, comparing quarter-on-quarter and semester-on-semester, where you can see that South America and Central America really contributed to the growth of the whole company, in the period, whereas Turkey, in comparison to last year, is dropping the revenue volumes for the reasons that we've been explaining every quarter, which is the right-sizing of the organization focusing on better deals in terms of products and market segments.
[Company Representative] (Metalfrio Solutions): Whereas Turkey, in comparison to last year, is dropping the revenue volumes for the reasons that we have been explaining every quarter, which is the right sizing of the organization focusing on better deals in terms of products and market segments. In spite of the revenue drop, the company is delivering a much higher EBITDA and margins as a whole, as we will see. In slide 5, we present the breakdown of net revenues by region deployed by services and products. Starting with South America, solid growth both in services and products, 28.6% in products, 9% in services. Central America growing 44.7% in products, dropping 1.7% in services. The drop here is that out of Mexico, one of our big customers in services, which is AB InBev, has concentrated in this period in placing new products rather than refurbishing old ones.
Luiz Caio: Whereas Turkey, in comparison to last year, is dropping the revenue volumes for the reasons that we have been explaining every quarter, which is the right sizing of the organization focusing on better deals in terms of products and market segments. In spite of the revenue drop, the company is delivering a much higher EBITDA and margins as a whole, as we will see. In slide 5, we present the breakdown of net revenues by region deployed by services and products. Starting with South America, solid growth both in services and products, 28.6% in products, 9% in services. Central America growing 44.7% in products, dropping 1.7% in services. The drop here is that out of Mexico, one of our big customers in services, which is AB InBev, has concentrated in this period in placing new products rather than refurbishing old ones.
Speaker #1: So in spite of the volume the revenue drop, the company's delivering a much higher EBITDA and margins as a whole, as we will see.
Speaker #1: In slide number 5, we present a breakdown of net revenues by region, deployed by services and products. Starting with South America, a solid growth both in services and products, 28.6% in products, 9% in services.
Speaker #1: Central America, growing 44.7% in products, dropping 1.7% in services, and the drop here is that they're in out of Mexico, one of our big customers in services, which is ABI, has concentrated in this period in placing new products rather than refurbishing old ones.
Speaker #1: Now, in terms of EMEA, to the right portion of the slide, as anticipated, we see a drop in products and a smaller drop in services as well.
Luiz Caio: Now, in terms of EMEA, to the right portion of the slide, as anticipated, we see a drop in products and a smaller drop in services as well. In slide 6, EBITDA for the Q2 comparing to the same period of last year, growing from BRL 83 million in 2025 with 11.8% margin to BRL 102 million the Q2 of this year, up to a margin of 13.8% with the contribution of all the regions. Moving on to the next slide, we will see the picture for the H1. You see the contribution of each region to the growth of the EBITDA for the H1, from BRL 136 million to BRL 180 million, and an important growth for EBITDA margin of 2.5 percentage points H1 on H1. In slide 8, we see the balance sheet of the Q2 of 2026 in comparison to the Q2 of 2025.
[Company Representative] (Metalfrio Solutions): Now, in terms of EMEA, to the right portion of the slide, as anticipated, we see a drop in products and a smaller drop in services as well. In slide 6, EBITDA for the Q2 comparing to the same period of last year, growing from BRL 83 million in 2025 with 11.8% margin to BRL 102 million the Q2 of this year, up to a margin of 13.8% with the contribution of all the regions. Moving on to the next slide, we will see the picture for the H1. You see the contribution of each region to the growth of the EBITDA for the H1, from BRL 136 million to BRL 180 million, and an important growth for EBITDA margin of 2.5 percentage points H1 on H1. In slide 8, we see the balance sheet of the Q2 of 2026 in comparison to the Q2 of 2025.
Speaker #1: In slide number 6, EBITDA for the second quarter, comparing to the same period of last year, growing from 83 million in 2025, with 11.8% margin, to 102 million this quarter of this year, second quarter of this year, up to a margin of 13.8%, with a contribution of all the regions.
Speaker #1: Moving on to the next slide, where you see the picture for the semester, then you see the contribution of each region to the growth of the EBITDA for the semester, from 136 million to 180 million, and a growth substantial important growth of EBITDA margin of 2.5 percentage points semester on semester.
Speaker #1: In slide number 8, we see the balance sheet of the second quarter of '26 in comparison to the second quarter of '25, and my highlight goes to the growth in shareholders' equity from 439 million to 492 million, reflecting the robust performance of the company in the period.
[Company Representative] (Metalfrio Solutions): My highlight goes to the growth in shareholders' equity from BRL 439 million to BRL 492 million, reflecting the robust performance of the company in the period. Moving on to slide 9, you see the operational cash flow picture. We have a negative cash generation in the quarter, which is in end of the H1, which is typical of the seasonality of our business. We will have all this money flow coming back during the Q3 and Q4. Still, good picture of the reduction of the leverage of the company measured by net debt per EBITDA to the level 2.33 times.
Luiz Caio: My highlight goes to the growth in shareholders' equity from BRL 439 million to BRL 492 million, reflecting the robust performance of the company in the period. Moving on to slide 9, you see the operational cash flow picture. We have a negative cash generation in the quarter, which is in end of the H1, which is typical of the seasonality of our business. We will have all this money flow coming back during the Q3 and Q4. Still, good picture of the reduction of the leverage of the company measured by net debt per EBITDA to the level 2.33 times.
Speaker #1: Moving on to slide number 9, you see the operational cash flow picture. We have a negative generation cash generation in the quarter, which is in and in the semester, which is typical of the seasonality of our business.
Speaker #1: We have all this money flow coming back during the second during the third and fourth quarter. But still, a good picture of the reduction of the leverage of the company measured by net debt per EBITDA to the level times.
Speaker #1: And coming to my last slide, which is number 10, you see a small deterioration on the cash cycle of the company comparing quarter on quarter.
[Company Representative] (Metalfrio Solutions): Coming to my last slide, which is number 10, you see a small deterioration on the cash cycle of the company comparing quarter-on-quarter of 4 days, which is due fundamentally by the increase of days of receivables in Brazil due to the customers' mix in the period. That brings me to the end of this presentation. I thank you so very much for the interest in Metalfrio Solutions, and we are always available for questions and explanations. Please contact us at any time. Thanks and goodbye.
Luiz Caio: Coming to my last slide, which is number 10, you see a small deterioration on the cash cycle of the company comparing quarter-on-quarter of 4 days, which is due fundamentally by the increase of days of receivables in Brazil due to the customers' mix in the period. That brings me to the end of this presentation. I thank you so very much for the interest in Metalfrio Solutions, and we are always available for questions and explanations. Please contact us at any time. Thanks and goodbye.
Speaker #1: Over four days, which is due fundamentally by the increase of days of receivables in Brazil due to the customers' mix in the period. That brings me to the end of this presentation.
Speaker #1: I thank you so very much for the interest in Metal Fuel Solutions, and we are always available for questions and explanations. Please contact us at any time.
