LatAm Earnings Tracker: Brazil 1Q26: concentrated EPS growth amid many misses

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LatAm Earnings Tracker: Brazil 1Q26: concentrated EPS growth amid many misses

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LatAm Earnings Tracker

Brazil 1Q26: concentrated EPS growth

amid many misses

Investment Strategy

EPS expansion despite widespread misses 19 May 2026

Ibov ex-commodities delivered Rev/EBITDA/EPS YoY growth of 9%/17%/8% in 1Q26 (vs Investment Strategy

7%/15%/4% in 4Q25, Exhibit 6). Ibov consolidated (including domestic names and Latin America

commodity exporters) delivered Rev/EBITDA/EPS YoY growth of 7%/10%/3% (from

6%/11%/12%). The beat/miss ratio declined to 0.9x (vs. 2.8x in 4Q25), the lowest since David Beker >>

2Q23. Industrials accounted for most misses, while Utilities led beats (Exhibit 1). BzMerrillEcon/FILynch& (Brazil)LatAm EQ Strategy

+55 11 2188 4371

Fuel distribution, banks & utilities drove EPS growth david.beker@bofa.com

EPS expansion was mainly driven by Fuel Distribution, Financials, and Utilities. Fuel PaulaLatAm AndreaEquity StrategistSoto, CFA >>

distributors stood out with strong margins, supported by cheaper supply from Petrobras Merrill Lynch (Brazil)

+55 11 2188 4226

amid a wide import price gap (see Hit The Pump). In Financials, large private banks paula.soto@bofa.com

continued to deliver solid revenue growth and cost discipline (with Banco do Brasil as Carlos Peyrelongue >>

the exception). In Utilities, AXIA was the key contributor, supported by higher power Mex Eq Strat/Research Analyst

Merrill Lynch (Mexico)

prices and lower energy, fuel, and transportation costs. +52 55 5201 3276

carlos.peyrelongue@bofa.com

>>Consumer names continue to face soft demand Mateus Conceicao

LatAm Equity Strategist

Consumer sectors delivered mostly weak results in 1Q26. In Retail, discretionary Merrill Lynch (Brazil)