Tupy (TUPY3) posted net income of R$ 54 million in 3Q26, reversing the R$ 40 million loss in 3Q25. The exact profit was R$ 53.6 million, with a net margin of 2.1%, driven by operational and financial performance.
Net revenue totaled R$ 2.6 billion (R$ 2,596.2 million), up 8.2% from 3Q25, with a 10% increase in physical sales volume. The highlight was the performance of commercial vehicle and off-road applications in the foreign market. This offset the 6% appreciation of the real against the dollar and the drop in revenue in the Energy & Decarbonization and Distribution units.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for other operating expenses) reached R$ 298 million, up 80.6%, with a margin of 11.5%, versus 6.9% in 3Q25 and 6.3% in 2Q26. The company attributes the result to higher volumes, commercial negotiations, and efficiency and cost-reduction initiatives. Excluding the one-off effects of the commercial negotiations, the margin would be approximately 9.5%.
Operating cash generation was R$ 292 million, mainly reflecting working capital management. The cash conversion cycle stood at 62 days, 24 days less than in 3Q25. Net debt totaled R$ 1.7 billion, down 23% from 3Q25 and 8% from 2Q26, with cash of R$ 2.4 billion, helped by funding from the Brasil Soberano program. The net debt/Adjusted EBITDA ratio was 2.94x, versus 4.14x in 2Q26.
In October 2026, Tupy partially repurchased, at market prices, the TUPY15 and TUPY25 debentures, with a face value of about R$ 257 million and a disbursement of R$ 250 million. In the same month, it received R$ 300 million from BNDES under the Brasil Soberano program, with a 60-month term and a fixed interest rate of 10.41% per year.
