TUPY 1Q26 Conference Call Highlights

Research evidence excerpt

TUPY 1Q26 Conference Call Highlights

J P M O R G A N Latin America Equity Research

15 May 2026

TUPY Neutral

TUPY3.SA, TUPY3 BZ

1Q26 Conference Call Highlights Price (14 May 26):R$13.67

Latin American Capital Goods

Tupy hosted its 1Q26 conference call with top management this morning. We see Marcelo Motta AC

TUPY trading at 3.5x EV/EBITDA 26e vs POMO at 4.5x and RAPT at 3.8x. (55-11) 4950-6712

marcelo.g.motta@jpmorgan.com

• Restructuring. 1Q26 results already included R$22mn in gains from the Jonathan S. Koutras

industrial footprint optimization enacted last year. Goal remains to obtain R (55-11) 4950-3549

$100mn in efficiency gains in 2026 and R$180mn in 2027 on the back of lower jonathan.s.koutras@jpmchase.com

fixed costs. Production is being allocated according to each plant's operational Banco J.P. Morgan S.A.

efficiency and vocation.

• Margins. Goal remains to reach double-digit EBITDA margins vs 1Q26 at

4.3%.

• Client demand signals point to 2H26 recovery. Key OEM clients are

signaling demand resumption: commercial vehicle OEMs raised North

American market growth projections for 2026 by 5-15%, construction

machinery OEMs posted +38% sales growth, and pickup truck OEMs saw

+20% growth in US light commercial vehicle sales. Class 8 order backlog

showed strong growth, and long-haul freight prices are recovering.

• Automotive segment. Domestic market was down 11% yoy and foreign -7%

yoy, but new contracts abroad have begun being recognized which somewhat

compensated for FX headwinds (BRL and Mexican peso appreciation).

Around 44% of this segment’s top line was from products involving machining

and assembly, which are higher value-added (relative to foundry).

• Aftermarket segment. Top line was impacted by high interest rates and