TUPY 2Q26 Conference Call Highlights

研报英文原文证据摘录

J P M O R G A N

Latin America Equity Research

07 August 2026

TUPY

2Q26 Conference Call Highlights

Overweight

TUPY3.SA, TUPY3 BZ

Price (06 Aug 26):R$15.02

Latin American Capital Goods

Tupy hosted its 2Q26 conference call with top management this morning. We see

TUPY trading at 3.4x EV/EBITDA 2027e vs POMO at 3.7x and RAPT at 4.2x.

Marcelo Motta AC

Jonathan S. Koutras

CEO message. Company’s new CEO reiterated Tupy’s strategy to increase

efficiency and profitability.

2H outlook. Backlog shows an expansion vs 2H25 and is running about in line

with the company's budget. As a result, the company foresees higher volumes

and better margins. Target is to reach double-digit margins.

Efficiency/Optimization. The change in the industrial footprint should

generate gains of R$100mn in the full year after gains of R$40mn in 1H. You

need to have the right product in the right production line.

Productivity and quality. These initiatives contributed with gains of R$23mn

in 1H and for the full year the benefit should reach R$143mn.

External markets. Continues to show a recovery benefiting Tupy’s results.

Moreover, clients are already increasing their labor force to increase

production. Moreover, the mix is geared toward heavy engines, benefiting the

company’s margins.

Margins. Impacted by labor pressures and Mexican peso appreciation, which

was partially offset by cost reduction initiatives and operational efficiency

gains.

EBITDA bridge. EBITDA was negatively impacted by R$6mn due to lower

volumes and R$104mn by FX (Mexico peso and Brazilian real appreciation),

which was partially compensated by lower costs and richer mix (+R$68mn)

while other items impacted EBITDA by -R$12mn. As such, 2Q26 EBITDA of

R$163mn compares with R$210mn in 2Q25.

New contracts - Ramos Arizpe. Generated revenues of R$250mn in 1H, out

of a total potential of R$600mn contract.

Pricing. Tupy is working with clients to improve their contracts and protect

themselves from FX volatility. For 3Q the company expects to recover R

$15mn related to FX.

Leverage. Should trend down during the year reflecting improvements in

EBITDA with net debt-to-EBITDA below 2.5x by year end. Moreover, Tupy

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