MRV Engenharia: 1Q26: Lack of consistency and leverage remains a drag

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MRV Engenharia: 1Q26: Lack of consistency and leverage remains a drag

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MRV Engenharia

1Q26: Lack of consistency and leverage

remains a drag

Maintain Rating: NEUTRAL | PO: 8.00 BRL | Price: 6.42 BRL

MRV Inc BZ net income 33% below BofAe 12 May 2026

MRV Inc. delivered results 33% below BofAe, mainly driven by (i) higher leverage, which Equity

continues to pressure financial results, (ii) more negative-than-expected equity income,

and (iii) net revenues 2% below our estimates. Gross margins came in line with Victor Tapia >> Research Analyst

forecasts, despite recent concerns around construction cost inflation. The company said Merrill Lynch (Brazil)

it has already increased its budgeted inflation to offset potential cost shocks ahead. A tapia.victor@bofa.com

more positive takeaway came from April trends, with production and transfers running CarlosMex Eq PeyrelongueStrat/Research>>Analyst

10% and 29% above the 1Q26 monthly average, respectively, which should support Merrill Lynch (Mexico)

carlos.peyrelongue@bofa.com

revenue growth and cash generation in 2Q26. We maintain our Neutral rating as we see

somewhat limited upside potential after earnings revisions peaked. At current levels,

valuation appears fair, as a significant portion of value is still concentrated in debt rather

than equity. This transfer of value back to equity should happen progressively going Stock Data

forward.

Price 6.42 BRL

Key operational and financial highlights for MRV Inc BZ Price Objective 8.00 BRL

Date Established 5-May-2026

Net revenues (+): rose 18% y/y in Brazil (down 8% q/q), in line with sales up 14% y/y.

Investment Opinion C-2-8

Gross margin (+): was flat q/q and rose slightly 14bps bps y/y to 31%, 20bps above 52-Week Range 4.86 BRL - 10.53 BRL

BofAe.