Vibra Energia S.A. ($VBBR3)

Good morning to everyone. It's a pleasure to be with you in the earnings results of Q1 of 2026. This is a quarter that demonstrates the consistence of our long-term strategy. The excellence in this quarter, and we are strongly focused on continuing to build our long-term Vibra journey focused on cash generation. Our cash generation was significant during this quarter. The strong engagement with our network of record expansion of branded service station. Here, we're building our future. We will continue the journey to build our future. This was marked by the Middle East conflict, which impacted the byproduct prices. Therefore, we've known how to deal with the volatility and to diminish the volatility throughout the quarter. Now Brazil is a net importer of fuels and diesel is exposed to international price volatility. Vibra ramped up imports and helped ensure national supply. At the end of the quarter, we had a scenario of possible scarcity, and we were able to broaden the imports and reassure supply and availability to our clients. Here, we have a strategic mix that resulted in competitive cost vis-a-vis other players. We continue focusing on equity in the distribution market, new progress against irregularity. We will continue. Here, new progress against irregularities, NAFTA single phase and persistent debtor strengthened for the debtor. And because of the availability of product and high availability of our team with our network or branded network, we believe that the consumers are looking more for a branded network and a significant growth of branded network. Now during -- now we have an 155 stations, and we advanced in the B2B strategy. And during the first quarter, we signed new contracts that would be around 50 new contracts. As I said, cash flow generation was important for us. We were able to reduce our leverage to 2x net debt EBITDA, and we lowered our net debt, although we had to pay JCP during the quarter. This is the consolidation of Vibra as a pure-play company in the sector. Our focus on fuel and car business, demonstrating our ability to generate cash flow and to be prepared. So Vibra is a more strong and more robust company for the future. Mauricio will cover figures.

Good morning to everyone for your participation. Here are first figures of the results of Q1 and adjusted EBITDA of BRL 3.2 billion. That is an adjusted EBITDA of BRL 350 per cubic meter. Here, we had a gain, an extraordinary gain of IPI on lubricating manufacturing of BRL 800 million. So we have recurring EBITDA of BRL 258 per cubic meter. This is a level above BRL 200, we were very disciplined in managing our margin. And this is a recurring figure of BRL 258 of cubic meters; volume 8,737 of cubic meters; market share, 23.6% and new stations, which was a record, which were 155 branded service stations. Operating cash generation, BRL 1.9 billion, excluding the EBITDA of BRL 800 million in credits that we will offset in the future that are not a cash. We had a great conversion of EBITDA to cash, which lowered our leverage to 2x net debt EBITDA. That was our target at the end of the year we were able to participate on. We did this in Q1, and the market has recognized what we have done and total returns for shareholders of LTM of 108%. Now here, we have the consolidated EBITDA, BRL 3.2 million -- BRL 3 billion. Here, this growth of 109% EBITDA, BRL 157 million (sic) [BRL 147 million] of EBITDA, which is a drop vis-a-vis the first quarter last year regarding all the challenges of the renewable industry. Now operating cash flow, BRL 1.9 billion, BRL 1.7 billion comes from Vibra and BRL 189 million Comerc stable regarding the past, although the EBITDA was managed actively when it comes to cash, and we maintained the cash generation of Comerc, although the drop in the EBITDA and net revenue, BRL 1.57 billion and Comerc BRL 80 million in losses, which was a lower loss than last year and Vibra BRL 1.4 billion. Now here, we can see the historic series in volume year-by-year and the growth of 4% vis-a-vis the same quarter last year, this is 1.7 million cubic meter. Adjusted expenses grew BRL 105 per cubic meter. When we break out the figure, when we see the G&A with the sales expenses stable as well, what was different here was basically when we consolidate our trading, our trading lost in hedge because we were buying a molecule that went up and the hedge that was sold represented a loss. And according to the trading accounting, this is an operational expense. There was a specific impact because of the moment of the increase of the price of oil, diesel. Therefore, there was an effect in the adjusted expenses. And in terms of management and sales, it's stable vis-a-vis last year and 2 years ago, there were no -- there was no increase in these 2 lines. When we see the adjusted EBITDA margin, we see year-on-year consistent growth in margin. And this year, we have BRL 350 million. Now when we see our business, when we see the retail, we have an adjusted EBITDA of BRL 1.729 billion, a growth of 74% vis-a-vis Q1 last year. The volume has grown 6%. There's a drop because this was seasonal and expected. In terms of last year, we grew in volume, branded network market share growing 1 percentage point because of all the movements in the sector for the branded stations and because of the growth of our network, which showed a record increase during this quarter. Here, we have 155 new stations. Also the volume, the average monthly volume increased 11%. We were able to maintain the supply for our loyal customers. New stores, 7%; BR Mania with gross merchandise value 9%; market share, 1.9 percentage points. Additive fuels, additive mix of 22.3%; additivized gross profit, plus 60% and podium gasoline volume was over 43%. I only feel with podium. B2B, for instance, here, we can see the gain on the IPI. There was BRL 1.4 billion of adjusted EBITDA. This is consolidated lubricants volume growth, also 1%. This is seasonal. Diesel aligned with last year, jet fuel growth, we signed new contracts with airlines growing 11% in our market share. Here, in B2B, we see a stability of 29.9% to 29.8%, TRR slight growth, when we see March, this is 19% of market share in TRR because of the availability of products. And this is a challenging moment in terms of supply, not only for Brazil and the world. When we see lubricants, we see a growth of 7% in volume, a slight drop in market share of 2 percentage points. There has been a growth of the input crude oil increased because it more than doubled. So there was a sales quota for Q1 to have products to supply our distributors and the entire market. March was a slower month, but in April, we resumed the volume of our share. Now this was the highest volume recorded for a quarter. Now renewables, there was a drop of EBITDA of 28% in Comerc. Here, we reached BRL 192 million and stable cash flow -- operating cash flow. So everybody knows the EBITDA impacted by curtailed scenario of almost of 20% and we've managed expenses and we've grown the efficiency in origination, and we can also offset the curtailment. Now when we see capital at priority allocation where we invest our CapEx was BRL 328 million, BRL 50 million in renewable in Comerc because we have focused on maintenance CapEx unlike the last year where we strongly focused on growth and generation. Here, we have more maintenance and this will not be a lower level. Also BRL 103 million of client bonus. This was lower if we see the run rate of last year, but we have new branded services because we have post-anticipated bonus. So we've grown in terms of service station, a lot of efficiency in branded, BRL 103 million and also BRL 175 million. With this capital allocation, this is our ROE, our ROIC. And this is the efficient capital allocation. When we see our liability, our net debt is dropping to BRL 18.6 billion. When we say net debt EBITDA, we had 2x, and we reached this despite the challenges of the industry, the molecule is more expensive. Services are more expensive because we should have more employed capital. We have been very active within a scenario of a more expensive molecule. We have accounts receivable higher and a stock higher in terms of purchase is highly aligned with trading, and we were able to buy the molecules at a suitable price at a deadline that remained in the accounts receivable reducing working capital. We were positive in the entire process. And this was a very challenging scenario for the market. Our average time line, 4 years and a spread. And here on the -- we have 2 operations that show the liability manage. We wanted to allocate capital with our assets positive with liability. We have good liability management to fund at a longer term and a cheaper term. Here, we have BRL 1.5 billion in volume. The cost of CDI was +2.20%, the term in 10 years. And with this resource, we paid the more expensive debt. This will appear BRL 1.4 billion. Here, we have CDI 0.2% debt that would mature next year. We are managing this. This is the first step of an active management of the company's liabilities that will be done throughout the year to lower the cost and also dropping the nominal value of the debt. I talked about assets and liabilities and now talking about the equity, the money of our shareholders, we delivered. We paid BRL 300 million, and we were able to lower the leverage during Q4. And we declared BRL 339 million (sic) [ BRL 393 million ] of JCP this year. The share have a return of 108% during the past months because we want to give good returns to the shareholders. And we will hand it back to Ernesto.

To end and to go to our Q&A. We are focusing on the long-term leading a good operational and cultural change in the company. We see this during Q1 of 2026. This shows the consistency of the management model demonstrates that in different moments of the market, we continue evolving in terms of results, and we're always focused on the growth of market share and profitability because both are important. And during the past quarters, we've shown our ability to grow and improve our margin. We are a very net share. We've had returns of 108% over the last 12 months with a quality shareholder base. We will continue seeing new solutions and products, which will continue to be fundamental in building our success. And we increasingly differentiate ourselves through our people and responsible care for everything we do. With this, I bring my presentation to the end, and now we can go to our Q&A session.

[Operator Instructions] The first question from Mr. Vicente Falanga from Bradesco BBI.

My first question, I believe what is clear is during the middle of the Middle East war, how robust companies had a very important role to maintain the Brazilian market supply. And it is very important to stay at very competitive prices when we see the average price of the fuel and in the pump of the branded service station regarding the others, the premium of the branded station dropped significantly, which makes us think that perhaps you have a relevant headwinds to gain market share tailwinds. I would like to know if you agree and how do you see the market share and any other type of data that you could share with us that corroborates this. My second question would be the ethanol market. I would like to know from you from the trading -- from your trading board, if you see fruits reversing the price of ethanol and how the reference shareholder is discussing the day by day of the ethanol operations.

Thank you for your question. Now speaking about market share, well, we can see that we will continue with a consistent trajectory of growth. I always say we're not here for quantum leaps neither on one side on the other. We are very reassured quarter-by-quarter until the end of the year in positioning ourselves as a company that delivers a growth of margin through more efficiency and processes and also growth. Therefore, we are extremely positive and reassured that we will continue growing in market share always without great leaps of market share. Nonetheless, our journey continues and throughout the next year, you will see a significant evolution of our market share with a relevant growth and a continuous evolution of our margins. And this is at any moment of the market. Currently, we're in the middle of a war scenario. We've also faced more difficult scenarios, and we will maintain the balance between margin and market share, providing good results quarter-on-quarter. We are positive that our market share will grow during the upcoming quarters. Now in the ethanol market, what we see is Vibra resuming the flexibility with Copersucar and Evolua. Evolua continues being a Copersucar company, and we have resumed the flexibility. It's too early to say or talk about this. But I do believe that we are gaining momentum in order to become more competitive. We, in the past months, have been leaders in the ethanol market in Brazil. We want to broaden this and with better consequences in terms of the margin of the ethanol. As a fact, we can see the flexibility that we were pursuing, and this will become naturally better results and better margins for the company, especially greater access to the corn ethanol. Therefore, this undoubtfully will provide us more flexibility. We are already seeing this. It's too early to see the results. Now regarding your question regarding the reference shareholder, what we can see and what is controlled, we always pursue interesting opportunities for Vibra. These should be import that provide us a competitive advantage that provide value to all the shareholders. We will always bear this in mind in the operational arena. So it's important to separate these roles. So yes, we are working with [indiscernible]. We're looking for opportunities that are interesting for both. And if they're interesting for Vibra, we will go after the opportunities and proceed.

Our next question, Mr. Leonardo Marcondes from Bank of America.

I also have 2 questions. The first question is regarding volume. In addition to the margins, we've seen a trend of great volumes. You added the amount of stations significantly and 61 new contracts in the B2B segment. If you could give us more color regarding the new contracts -- B2B contract, how should we see these contracted volumes? And still in volume, you were already doing a great job before the war. And I would like to know from you how do you see the branded service station market and the B2B contracts within a scenario -- postwar scenario. And another point that drew our attention of the result was the active management of your working capital. I'd like to ask about working capital. But during this quarter would be great consumption of working capital because of the market volatility and the rise of the fuel prices. So could you give us more color regarding the measures and strategies throughout this quarter to deliver these figures regarding your working capital? These are my 2 questions.

So thank you, Leonardo. I will answer the first question regarding volume, B2B and prewar, postwar. And then I will hand it over to Mauricio to talk about working capital. Regarding the gain in volume, we are extremely reassured that we will continue growing. This is a continuous growth with no major leaps, but growing -- continuously growing in volumes, market share in a structured way year after year, quarter-on-quarter. Therefore, we're going to structure this. And what do we see? Pre-war, we already had a scenario where we were fighting irregularity. So our stations attracted more consumers because they trusted the Petrobras station and they were suspicious regarding other stations. And we also see our resellers. Resellers want our brand. This is a positive scenario and throughout the world with the Vibra's ability to service with the imports -- broadened ability to service our network. Well, with this, our value proposition was even more present. So what we can see today, yes, this is -- we will face tailwinds. So we can face with leverage. We had record new stations this year. And perhaps we will reach a new record this year in new stations. It was good 155, and we continue amongst tailwinds. Our strategy in B2B since last year, but was accelerated during Q1 is to be able to have more loyal clients, not only in volume, but also to achieve stability within the margins. So this B2B strategy for more contracts that will provide us more supply assurance. And now I'll hand it over to Mauricio.

So well, really, the natural scenario would be to consume working capital, and we started implementing a program 2 months ago, and we would deepen all the balance. This is a structuring program that will run in a recurring fashion, and we gave it a name. So this -- so we want everybody to specialize in the documentation, so we can optimize the employed capital. And then in the middle of the way, we faced a war we had to anticipate ourselves. And well, we saw that we had to increase the employed capital of the company because of the rise of the molecule. So we were disciplined regarding our client in the trading purchase. So we had more -- we had better deadlines without compromising our price. This was a tactic during the quarter to offset the impact that we expected in terms of increase of working capital. So thank you very much.

Our next question from Regis Cardoso of XP.

Congratulations to your results. My first question, could you give us an overlook and an update regarding the market supply import diversification? What is timely to comment? And also my second question, if you could update us regarding the new measures of the quarter, monophasic NAFTA, if you -- NAFTA single phase, how you measure the effects of these evolutions on your results? And I would also like to understand from the consolidation of ethanol volumes, does this already impact the margin of Q1? And it is at the order of grandeur expected that was BRL 4 per cubic meter.

Now I will start by the third one. Evolua, we will see the impact on the second quarter because this ended on March 31. And the idea here, BRL 5 per cubic meter, we have a result per equivalent. And this is incorporated in the margin, but we believe that we will see something better than this in the future because we will have more flexibility, and we will be able to deal with corn ethanol. Regarding Evolua, now the market supply from the Vibra point of view, we continue with our pace of imports, very balanced actually. And this is something that we saw since the first quarter, and we want to guarantee the supply of our service station network and our clients, and we are reassuring -- we are reassuring to have product availability and to continue servicing naturally. We do not see any problems of lack of supply. Our clients will have the products that they need in order to continue with their operations. Now NAFTA single phase and persistent debtor, the persistent debtor, we will see effects throughout the year. The IRS initiated operations regarding persistent debtor in the cigarette market, and we will see progress in the fueling market throughout the second quarter or second semester. But certainly, this will be an additional positive chapter that will improve the institutional environment in the country. So everyone plays fairly, and this will have a positive impact on our results. This is why we continue optimistic. This is not only because of Q1, we were in a trajectory of improvement in our results, be it in margin and volume, and we will continue and the impact of -- yes, the impact on the institutional progress on irregularities is very important.

[Operator Instructions] Our next question, Gustavo Cunha of BTG Pactual.

My question here is the CapEx that during this quarter was lower than what is normal. Is this because of the format of branded service station post anticipated, preanticipated? How should we expect this CapEx?

Thank you for the question, Gustavo. It is connected to this. We established a policy that is a premise pre-branded that privileges the payment both anticipated and anticipated (sic) [ preanticipated ]. This is something different in the market. Therefore, we placed less CapEx from the get-go and it extends and it grows with the increase of volume. So this is a trend. This is a new standard. We consumed less CapEx during Q1, and I believe that we will continue at these levels throughout the year.

Our next question, Gabriel Barra from Citibank.

Point number one, this is a summary. I believe that my question is the sustainability of the margin from here on. And as Ernesto quoted, and we've seen this from some time, the debate on formality and the progress in this agenda was very important for the industry and it corroborates with the improvement and the sustainability of the margin. But there is a one-off effect that is the war and supply short market. So this makes the business more complex in terms of working capital with greater margins. What I wanted to approach here and better understand is I know it is difficult if you could break out what is the most recurring effect on the margin from here on and which is -- what is the nonrecurrent effect, because we're in the middle of a turmoil and sometimes this ends up benefiting the margins. I don't know if I'm wrong. If you could correct me, it would be for you to elaborate on the sustainability of the margin too, capital allocation, yes, because of the deleveraging in a scenario of higher interest rates, Comerc, well has higher leverage. And the company has deleveraged itself quickly because of the significant and strong results during Q1 and during the past quarters. So what is important here when I see the leverage 2x -- below 2.5x, so how positive this is for the company? What about capital allocation? How do you believe that this EBITDA is sustainable? Should we think about an EBITDA strengthening quarter-on-quarter and deleverage becoming stronger or, for example, the lower of the debt is important for the company, I don't know. How do you see regarding capital allocation and for example, paying dividends to your shareholders?

I can talk about -- I can answer question number 2. Regarding the margin sustainability, it's very difficult to separate the factors, which impact the margin during any quarter, be it this quarter or other quarters. Now what I like to analyze is the last 12 months. This provides you -- this amortizes all the ups and downs. What we do know is that, yes, we are seeing better margins, not only for the regular market because we are efficient. We use AI in our internal processes, so we can continue evolving and to be more efficient, lowering cost in our processes. Here, we just mentioned the ethanol acquisitions that would provide us competitive gains. There are a lot of internal processes. Improving the regular market also is being eliminated. I believe that the war scenario will end at a given moment. And if you see the last 12 months, you can see what you can expect from us. So it is difficult to separate one factor from the other when we see all the current volatility in the market. Now regarding capital allocation and the deleverage in addition to a net debt EBITDA indicator, we want to reduce the nominal debt. Well, here, we're in the middle of interest rates of 14%, and we don't know when the interest rates will drop. Of course, we want to have more capital in order to pay out our shareholders. So when we have a lower debt level, we will be able to do this. Now we will pay BRL 100 million of JCP November this year. So we have declared our commitment. That is our liability with our shareholders. We need cash flow and balance. And we will continue deleveraging ourselves. We will also see the opportunities at the long run. We have to deleverage the company first. This is our main focus.

Our next question, Bruno Amorim from Goldman Sachs.

A number of relevant points have been approached that I would like to follow up. Over 10 years ago, Petrobras charged above parity, and this paved the way for importers and these importers remained in the market in a perennial way. And my question here would be the other way around, regardless of the times and when the import window is unfavorable, do you believe that there are players that will leave the market? What do you see in the market? What you see are more structured importers that will lose competitiveness in the short term and will come back to 100% or almost 100% of their activities. I would like to know from you who see the market clearly? What can you talk about the competitive dynamic and the long-lasting effects and all of this due to the conflict in the Middle East.

Thank you for your question. Well, in reality, what we see is a market that is a number of distributors are importers. They are working with the regularities and competitive advantage that we don't have. This is our focus to correct this because here, we believe that our business model is extremely competitive in any scenario be it in open or closed import scenario. We are reassured that our model today between national supply, imported supply, capacity of distribution, logistics, our access to the molecule that is imported. This is a highly competitive model. When everyone plays according to the rules, that is our effort. Well, we do have a model that in our vision that will naturally allow Vibra to grow and to expand its margin. Our role is to perfect this model so that we are competitive for those that play according to the rules. And the market will be the market, be it closed, open in terms of imports. We will be the most competitive player.

Our next question from Monique Greco, Itau BBA.

I will pose 2 questions. The first question, I would like to know from you the stock effect. We still haven't mentioned this, and I imagine with the rise of prices in the middle of a conflict, there has been a stock effect during the quarter. I would like to know more about the effect during Q4 and the current Q because during April, we saw a drop in import costs, which should generate a stock effect. So I would like to know about Q1 and the current quarter. And what about import dynamic? Mauricio said something interesting regarding longer deadlines of imports during Q1 and this positively helped the enterprise because of working capital management. How do you see this in April and May? How have you seen the market conditions deadline payment for April imports and now the imports for May?

Thank you, Monique. I will -- the stock effect during Q1 was extremely low. We didn't mention this. I think it was BRL 2 per cubic meter. We have the imported impact, but on the lower side of our total volume. And ethanol, the other way around. So yes, the impact was very low during Q1. And during the second quarter, we do not see relevant impact between ups and downs. We see an impact relatively low of the stock effect. For the time being, this has not been a great event in our result. Now when we see imports, our trading team is extremely active. All the world is looking for diesel to buy and we are very strict in our compliance. There are vessels that are sanctioned, and we work according to the book. We buy only what we can. I believe this limits a bit the market, but we found cargo according to the rules, and we can negotiate better payment deadlines. And May is something along the same lines. We have good payment deadlines, and these are reliable debt sources. I see no changes, and I believe that we will continue working this way.

Our next question, Bruno Montanari from Morgan Stanley.

Just a follow-up regarding the margin discussion. Ernesto, it makes sense to analyze the past 12 months, but the volatility has been major. And when we think about a number of quarters or past years, we would talk about a new margin level, BRL 150 per cubic meter. This is no longer the case. Then the industry started talking about pursuing BRL 200 and you deliver a quarter very close to BRL 270 million, BRL 280 million. I would like to understand this BRL 200 million that was pursued by the industry. So this level would be considered normal when we think about commercial levels, no, I think. Of course, when we consider this environment of war, can you talk about subvention? How has this program? What do you think about subvention?

Now regarding margin, thank you for your margin. I'd like to say this is a quarter with a typical effect that led to this margin of BRL 260 per cubic meter. But there are typical effects. Now what we continue pursuing is to consolidate the margin, and it is feasible to reach a margin of BRL 200 per cubic meter and consider this something that will continue and stable. We are focused on executing and delivering. And during the coming quarters, you will see our ability of delivering BRL 200 per cubic meter. Now we are candidate to the subsidy program. This has not impacted Q1. We are talking with the government authorities in order to find a pathway so that we can use these subsidies -- these government subsidies, and we want a win-win situation for the government, for us. So we are interested in executing this. We are still trying to find the best path and model to execute or to see how the subsidy will be provided.

Now Tasso Vasconcellos from UBS.

I have 2 questions on my side. You've talked a lot about margin, the recurrency, the short-term effects. I would like to go back to this point, but under a different view and to see macro be domestic. Now Vibra has captured a value because of its scale and expertise. At a micro level, where do you see -- when you see in-house, where do you still see performance bottlenecks? Where are you below the level? And the second question, if you could elaborate on your conversations with Comerc. You mentioned that you're seeking a definite solution like bringing a new partner. Could you update us and tell us if there has been progress in the conversation or perhaps this challenging scenario has created blocks?

Now Comerc, our focus is to operate properly with Comerc to do properly. We have no control in curtailment. We've worked institutionally. They are the system of price formation, which is against risk and this increases the price. And we do believe that there is a model that could reduce this fight from risk. So we've worked with the government and we want Comerc. In the renewable energy industry, this is one of the enterprises with the best balance, and we want to maximize the results of Comerc because of the situation that the entire industry is facing. Because now in other efficiencies and results here, there are 2 opportunities that we will capture throughout the next quarter. One would be a continuous evolution of logistics. There is still room for improvement for the logistic price, our ability to deliver. We're in the beginning of the deployment of AI processes to be better and more efficient within our logistic chain. And another thing that we're mentioning is ethanol flexibility. We will have greater capacity to sell ethanol, and we will be able to grow in terms of ethanol volumes and to improve our margins with more flexibility when we pulled out of the Copersucar joint venture with Evolua. So there are opportunities that we are focusing on well, we continue to focus on our operational model. Thank you very much.

The Q&A session has come to an end. We would like to hand it back to our CEO, Ernesto Pousada, for his final remarks.

Well, I would like to thank everyone. During this quarter, we've shown the consistency that Vibra has to deliver results. These have been consistent quarters of results evolution. We will continue this way. We are focused on increasing margin and growth. And we are focused on overcoming the volatility because we want our products to have fuels and products that are important for their service stations. Thank you very much.

Vibra's conference call has come to an end. We thank all of you for your participation, and have a good day.