LatAm Transport and Capital Goods: Daily Take-Off: TUPY, CPA, VLRS, EMBJ, RAIL, WEG, RAPT

Research evidence excerpt

LatAm Transport and Capital Goods: Daily Take-Off: TUPY, CPA, VLRS, EMBJ, RAIL, WEG, RAPT

Global Research

10 July 2026ab

LatAm Transport and Capital Goods Equities

Latin AmericaDaily Take-Off: TUPY, CPA, VLRS, EMBJ, RAIL,

WEG, RAPT Industrial

Alberto Valerio

Analyst

alberto.valerio@ubs.com

TUPY: EPA proposes to soften the 2027 heavy-truck emissions rules +55-11-2767 6918

According to Valor, the US EPA proposed relaxing the heavy-truck emissions Andressa Varotto

regulations adopted in 2023 under the Biden administration, allowing Analyst

manufacturers to keep selling current models that do not meet the stricter andressa.varotto@ubs.com

standards until the engine-development programs required for 2027 are concluded, +55-11-2767 6654

citing technical difficulties faced by the industry. The agency says the adjustment Rafael Simonetti

still preserves nearly 90% of the NOx reductions targeted by the original rule, and Associate Analyst

EPA director Lee Zeldin estimates savings of US$12bn, or up to US$6,000 per truck. rafael.simonetti@ubs.com

UBS US machinery team wrote it sees the flexibility as modestly positive for truck +55-11-2767 6628

stocks with potential implication including potentially better availability of

noncompliant HD engines in 2027 which could lead to modest reduction of pre-buy

demand in 2026. On the other hand, this could lead to replacement of orders for

2027 and reduce the demand overhand risk for 1H27. Link to the full note. Potential

Impact: Neutral for Tupy. Although the proposed measures could have a negative

impact on the pre-buy of 2H26, the greater certainty around the subject and better

outlook for 2027 should offset that.

LatAm Airlines: Azul deepens 2026 capacity cut to 4.8% and targets leverage

below 1.5x by 2029