Global Emerging Markets Credit Research: LatAm 1Q26 fundamentals: Beyond commodities and back to capex

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Global Emerging Markets Credit Research: LatAm 1Q26 fundamentals: Beyond commodities and back to capex

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Global Emerging Markets Credit Research

LatAm 1Q26 fundamentals: Beyond

commodities and back to capex

Industry Overview

Latam fundamentals are back on a firmer trajectory 24 July 2026

We assess 1Q26 fundamental trends across 93 LatAm non-financial corporate issuers. Global Emerging Markets | Corporate

The main message is constructive: revenue and EBITDA growth accelerated, leverage Credit

declined and liquidity improved. However, higher capex and debt growth show that

companies are beginning to redeploy balance-sheet capacity, while tight valuations leave AnneResearchMilneAnalyst

limited room for indiscriminate exposure. See our previous update on EM fundamentals. BofAS

+1 646 855 4096

The recovery broadened beyond Energy and Materials anne.milne@bofa.com

LatAm corporate LTM revenues increased +5.8% YoY and LTM EBITDA rose +12% as of Bruno Larcher Research Analyst

1Q26, reversing the softer trends seen in 1H25. Quarterly figures were even stronger, Merrill Lynch (Brazil)

with revenues up +14.7% YoY and EBITDA +26% YoY in 1Q. In absolute terms, Materials +55bruno.larcher@bofa.com11 2188 4010

was the largest EBITDA contributor, adding $8.5bn YoY driven by CDEL, SCCO, Penoles GEMS Corporate Credit Rsch

and Vale, followed by Energy at +$6.9bn YoY. However, even excluding both energy and BofAS

materials, LTM EBITDA still grew +12% YoY, confirming the recovery is broad and not

commodity dependent. On a % basis, transportation led (+39% YoY), followed by See Team Page for List of Analysts

healthcare (+28%) and commercial services (+23%). Automotive (-12% YoY) was the

weak spot, dragged by Tupy and Nemak.