SHUL3 Schulz

Schulz S.A. is a publicly traded corporation, with SHUL3 and SHUL4 shares listed on B3, founded on June 12, 1963, in Joinville (SC) by Heinz Schulz and a group of partners. The company began with a focus on the metallurgical industry and, over the decades, developed a diversified portfolio of industrial products and solutions. Its production structure was gradually expanded to include foundry, machining, painting, and assembly, keeping pace with the evolution of Brazil’s industrial base and the increasing demand for capital goods and automotive components. With more than 3,500 employees, it has consolidated itself as a globally active company, exporting to dozens of countries and combining high‑complexity manufacturing with commercial activities and associated technical services.

Schulz’s business model is organized into two major units: Schulz Compressores and Schulz Automotiva. The first focuses on the manufacturing and sale of piston and screw air compressors, pneumatic and electric tools, pumps, pressure washers, and related equipment, as well as spare parts and imported resale products that complement its own line. The second unit, Schulz Automotiva, operates as one of the largest foundries in the country, supplying ductile and gray iron parts, machined, painted, and assembled, for commercial vehicle manufacturers, road implement producers, agricultural machinery manufacturers, and construction equipment makers. In terms of disclosed operating segments, the company reports Industry and Commerce activities, with net revenue predominantly from Industry, which accounted for around 86% of revenue in 2024, while Commerce represented approximately 14%.

In the Schulz Compressores unit, the company stands out as the largest manufacturer of piston and screw air compressors in Latin America, with a broad line of rotary and reciprocating compressors, hobby diaphragm models, refrigerated air dryers, and a range of pneumatic and electric tools. The portfolio also includes pressure washers, centrifugal pumps, cutting and fastening equipment, and various replacement items. Production is vertically integrated in key stages such as manufacturing of pressure vessels, automatic electrostatic powder and liquid painting, and final equipment assembly. Schulz has also developed the capability to produce its own electric motors for some compressor and pump models, seeking to reduce dependence on external suppliers for critical items. Its distribution network for compressors and tools exceeds 10,000 distributors and includes more than 700 technical service providers, supported by physical and digital channels, including B2B, B2C sales, and the Schulz Store concept shop, which reinforces brand presence and proximity to the end user.

In the Schulz Automotiva division, the company concentrates activities in ductile and gray iron casting, precision machining, and KTL painting, focusing on components and assemblies for the automotive and general mechanical sectors. The company supplies brackets, transmission and differential housings, engine covers and mounts, brake components, wheel hubs, and other items to truck and bus manufacturers, as well as road implement producers. It also manufactures parts for agricultural and construction machinery makers, such as leveling boxes, bearings, sleeves and axle housings, integrating its components into applications for freight transportation, logistics, agriculture, and infrastructure. Production processes use electric induction furnaces and automatic systems for metallic charge composition, seeking stability in mechanical properties and quality repeatability. The division is certified under international quality and environmental standards such as ISO 9001, ISO/TS 16949 and ISO 14001, a relevant factor for serving global automakers and meeting the technical requirements of the automotive supply chain.

Geographically, Schulz maintains its main industrial base in Joinville, where it concentrates foundry, machining, painting, and compressor manufacturing, as well as a unit dedicated to automotive machining and a standalone production unit for iron casting. The logistics structure includes an Automotive Logistics Center and a Compressor Logistics Center, as well as a Technological Innovation Center. Abroad, the company operates a Compressor Logistics and Commercial Center in Atlanta, in the United States, and a trading company and compressor factory in Shanghai, China, as well as bonded warehouses in North America and Europe. In 2024, about 77.6% of Schulz’s net revenue was generated in Brazil, while approximately 22.4% originated in foreign markets, particularly the United States, France, Sweden, Poland, and South Africa, among other countries. The international presence allows market diversification and dilution of dependence on any single country or region.

Schulz’s customer base is diversified, with no material concentration in a single buyer. In 2024, there was no customer accounting for more than 10% of total net revenue, which reduces exposure to commercial dependency risks. In the compressors unit, products serve both retail and industrial segments, reaching small and medium‑sized enterprises, large industries, contractors, and mining companies, especially in the case of large‑scale compressors, often sold as complete compressed air centers. In the automotive division, the company is part of the supply chains of commercial vehicle manufacturers, road implement producers, agribusiness companies, and manufacturers of construction machinery and equipment. In the replacement segment, the line of automotive compressors for truck pneumatic brake systems is marketed mainly in the independent aftermarket (IAM), based on a network of hundreds of distributors in Brazil and an incipient presence in other South American countries.

From a regulatory standpoint, Schulz’s core activity falls within sectors of free competition, with no public concession regime or monopoly, and the company states that it does not depend on special government authorizations to operate, beyond the usual licenses applicable to industry. In its production process, the company reports that it properly handles industrial waste in accordance with environmental legislation, sending heavy waste to areas designated by the government and subject to oversight by the competent authorities. Schulz states that it has never had its industrial operations halted or impaired due to environmental issues and adopts periodic monitoring of atmospheric pollutants, especially in the foundry area, with support from specialized companies. The company also maintains a portfolio of trademarks and patents registered with the National Institute of Industrial Property, covering trade names and technical solutions related to compressors, air systems, and auxiliary equipment, which reinforces its positioning as a developer of proprietary technology within its industrial niche.

Regarding environmental, social, and corporate governance topics, Schulz operates an Environmental Management System certified under NBR ISO 14001 and is in the process of structuring a broader Sustainability Management System, aiming to consolidate ESG indicators in a dedicated report starting in 2026. The company monitors indicators for water and energy consumption, waste generation, effluents, atmospheric emissions, and noise, with reduction targets and eco‑efficiency programs. Initiatives include Zero Landfill projects at Schulz Compressores and part of the automotive operations, waste co‑processing, reuse of discarded foundry sand in civil construction and other industrial processes, and the development of reverse logistics channels for products and packaging, in line with the National Solid Waste Policy. The company has also started reporting data to CDP, received a sustainability commitment label from Ecovadis, and entered into a partnership with CNI and Procel to optimize energy consumption and reduce environmental impacts. Additionally, Schulz has adhered to fossil‑fuel‑free energy initiatives, with renewable energy certification and self‑generation projects, seeking to ensure, from 2025 onwards, full clean energy supply for its industrial operations.

The common (SHUL3) and preferred (SHUL4) shares of Schulz S.A., traded on B3, represent an interest in a diversified industrial company with a strong presence in the manufacturing of air compressors and casting and machining solutions for the automotive and machinery supply chains. Its operations combine heavy manufacturing, proprietary technological development, an extensive distribution network, and structured environmental management initiatives, which position the company as a relevant supplier of capital goods and components for various productive sectors, both in the Brazilian market and abroad.