UGPA3 Ultrapar

Ultrapar Participações S.A. is one of Brazil’s most traditional business groups, with origins dating back to 1937, when Ernesto Igel founded Ultragaz, a pioneer in LPG distribution for residential use as cooking gas. Over more than eight decades, the company has expanded its activities to different links in the energy, mobility, and logistics infrastructure chain, structuring itself as a holding company that controls relevant operating businesses. Ultrapar’s shares, traded on B3 under the ticker UGPA3 and also on the NYSE via a Level III ADR program since 1999, were included in the Novo Mercado listing segment in 2011, reflecting a governance model focused on corporate structures more closely aligned with the best practices of the Brazilian capital markets.

Ultrapar’s business model is based on portfolio management and disciplined capital allocation in companies in which it can act as a strategic shareholder, with a focus on long-term value creation. As of December 31, 2024, the company concentrated its activities in three main businesses: Ipiranga, Ultragaz, and Ultracargo, in addition to a relevant stake in Hidrovias do Brasil, acquired through its subsidiary Ultra Logística. The corporate strategy prioritizes sectors in which the group has built operational scale, specialized know-how, and structural competitive advantages, notably in mobility, energy, and logistics infrastructure. Starting in 2021, this focus was reinforced by portfolio rationalization through the sale of assets such as Oxiteno, Extrafarma, and the stake in ConectCar, concentrating resources in segments considered core.

Ipiranga, an indirect subsidiary controlled by Ultrapar, is one of the largest fuel distributors in Brazil, with a 17.3% market share in gasoline, ethanol, and diesel in 2024, according to the ANP. The company operates in the distribution of diesel, gasoline, ethanol, CNG, fuel oil, kerosene, ARLA 32, lubricants, and greases throughout the country, supported by a network of 5,860 service stations and 90 logistics storage bases at the end of 2024. In addition to automotive fuel supply, its operations include serving large consumers and reseller transporters, with logistics based on pipelines, road, rail, river, and cabotage transportation. Ipiranga is also exposed to related businesses such as the AmPm convenience store network, the Jet Oil automotive services network, and the Iconic lubricants joint venture, which expands Ultrapar’s presence in higher value-added products in the mobility chain.

Ultragaz, the business that originated the group in 1937, has consolidated itself as one of the leaders in LPG distribution in Brazil, operating nationwide in both the bottled gas market and the bulk segment. The LPG distributed by Ultragaz is derived from oil refining, natural gas processing, or the petrochemical industry, with applications ranging from residential use as cooking gas to industrial and commercial uses, including water heating, cooking in large establishments, agro-industrial processes, and applications in poultry and swine farming. The company serves approximately 57 thousand corporate clients and more than 11 million households through an extensive network of over 6 thousand independent resellers, and it also has its own infrastructure to serve bulk clients, with primary, secondary, and satellite bases distributed across all regions of the country. Ultragaz has been expanding its offering of energy solutions through moves such as the acquisition of NEOgás, which works with compressed natural gas for industrial and vehicular clients, and Stella and Witzler, which are involved in distributed generation, trading, and management of electric power in the free market.

Ultracargo is Ultrapar’s liquid bulk terminal arm and positions itself as the largest independent provider of storage services for this type of cargo in Brazil. The company operates multipurpose terminals that store and handle fuels, biofuels, chemicals, corrosive liquids, and vegetable oils, combining tank infrastructure, loading and unloading systems, and connections with different modes of transport. In December 2024, Ultracargo operated eight terminals with total static capacity of 1,067 thousand m³, located in strategic logistics hubs close to ports and production areas. Its client portfolio is diversified, with long-term contracts; in 2024, the ten largest clients accounted for 62% of the business’s revenue, with the three main clients, including Ipiranga, representing 37%. The company has also been expanding its activities inland, as evidenced by the acquisition of 50% of Opla, Brazil’s largest independent ethanol terminal, and by investments in rail connections and in operational efficiency and safety programs.

Ultrapar’s presence in logistics was expanded with the acquisition of a relevant stake in Hidrovias do Brasil by Ultra Logística, a subsidiary of the group. In December 2024, Ultrapar held 41.97% of Hidrovias, a stake that reached 50.15% in May 2025, giving it control of the operation. Hidrovias specializes in transporting cargo via waterways, focusing mainly on the outflow of grains, minerals, fertilizers, and salt. Its operations include an integrated logistics system in the Northern Corridor, coastal shipping by cabotage, river navigation in the Southern Corridor, and port operations in Santos. This capital allocation reinforces Ultrapar’s focus on logistics infrastructure and increases its exposure to Brazilian agribusiness, a segment that is becoming increasingly important in the country’s export matrix and in demand for multimodal transportation and storage solutions.

From a geographic standpoint, Ultrapar’s operations are heavily domestic in profile, with a footprint that spans virtually all regions of Brazil. Ipiranga maintains primary bases close to refineries and ports and secondary bases inland, ensuring fuel supply in major urban centers and more remote areas. Ultragaz distributes LPG in every state, with a strong presence in high-population-density markets such as São Paulo, Minas Gerais, and Bahia, while Ultracargo operates in key port logistics hubs and inland, integrating fuel and biofuel routes. Iconic extends part of its activities to neighboring countries such as Bolivia, Uruguay, and Paraguay through a reseller network, adding a regional dimension to the reach of lubricants products linked to the Ipiranga ecosystem.

Ultrapar and its subsidiaries operate in highly regulated sectors, especially in the oil, gas, and biofuels chain, under the supervision of the National Agency of Petroleum, Natural Gas and Biofuels (ANP). Ultragaz depends on specific ANP authorizations to operate as an LPG distributor, meeting requirements such as minimum storage capacity, minimum share capital, maintenance and requalification of cylinders, its own bottling plants, and compliance with safety and municipal licensing standards. Ipiranga is subject to regulation on mandatory blending of ethanol into gasoline and biodiesel into diesel, as well as to the decarbonization targets of the RenovaBio program, which requires the purchase of CBios according to the volume of fossil fuels sold. Changes in the regulatory framework, including laws such as Combustível do Futuro, directly impact the competitive and operating environment of distributors, influencing costs, logistics investments, and demand for biofuels.

In terms of environmental, social, and governance practices, Ultrapar states that sustainability is an intrinsic element of its strategic planning, linking its energy, mobility, and logistics operations to long-term goals related to the energy transition and emissions reduction. Exposure to programs such as RenovaBio and to new requirements for low-carbon fuels drives initiatives in the biofuels chain and in the development of more efficient energy solutions, such as compressed natural gas and distributed generation. In the social and human capital arena, the group highlights the renewal of around 30% of leadership positions between 2021 and 2024, with a high internal promotion rate, and the adoption of separate boards of directors for each business starting in 2025, reinforcing decentralized governance and performance monitoring. These elements shape the context in which UGPA3 shares, traded on B3, reflect a conglomerate exposed to regulatory, technological, and consumer dynamics related to the fuels, LPG, and logistics infrastructure markets in Brazil.