Ultrapar Strong Momentum Builds the Case for Dividends

Research evidence excerpt

Ultrapar Strong Momentum Builds the Case for Dividends

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

15 July 2026

Ultrapar

Strong Momentum Builds the Case for Dividends

We reiterate our Overweight rating on Ultrapar, supported by strong Latam Oil, Gas & Petrochemicals

ACindustry momentum and an excess cash generation that could increasingly be Milene Clifford Carvalho

converted into shareholder returns. While investors remain focused on oil price (55-11) 4950-3475

volatility and geopolitical developments, we believe the market may be milene.carvalho@jpmorgan.com

overlooking the extent to which a supportive refining backdrop and a more Henrique Cunha, CFA

favorable competitive environment will continue to sustain fuel distribution (55 11) 4950 3623

profitability above historical levels. This should translate into strong cash henrique.r.cunha@jpmorgan.com

generation for Ultrapar, driving meaningful deleveraging and increasing financial Rodolfo Angele, CFA

flexibility over the coming years. In our view, in the absence of acquisitions, the (55-11) 4950-3888

rodolfo.r.angele@jpmorgan.com

company is increasingly positioned to return excess cash to shareholders while Banco J.P. Morgan S.A.

maintaining a healthy balance sheet. Supported by a structurally stronger

profitability floor, a robust balance sheet, and continued industry formalization, we

continue to see an attractive risk-reward profile for Ultrapar. UGPA3.SA, UGPA3 BZ

• The Brazilian fuel distribution sector should continue to benefit from Overweight

supportive fundamentals and ongoing industry formalization. Globally, Price (14 Jul 26): R$30.11

oil price volatility remains elevated and investor attention is focused on

geopolitical developments, yet the refined products market continues to UGP, UGP US