By Brazil Stock Guide – Marcopolo SA (POMO4.SA, POMO3.SA) reported higher first-quarter profit even as revenue slipped, with stronger margins and overseas operations helping offset weaker sales in Brazil and exports. The company’s preferred and common shares trade on Brazil’s B3 under POMO4 and POMO3, according to Marcopolo’s investor relations site and B3 records.
The Brazilian bus-body maker posted net income of 264.6 million reais in the first quarter of 2026, up 8.8% from 243.1 million reais a year earlier, according to Marcopolo’s earnings presentation for the period. Net revenue fell 1.3% to 1.66 billion reais from 1.68 billion reais.
Earnings before interest, taxes, depreciation and amortization rose 16.3% to 304.8 million reais. The EBITDA margin widened to 18.4% from 15.6%, while the net margin increased to 16.0% from 14.5%.
Revenue in Brazil declined 3.5% to 899.7 million reais. Exports from Brazil fell 9.0% to 159.3 million reais. Overseas revenue moved in the opposite direction, rising 4.6% to 596.2 million reais.
The results showed a mixed operating performance. Marcopolo produced 2,396 units in Brazil in the quarter, down 5.1% from a year earlier. Output from external units fell 33.5% to 363 units. Exports rose 7.2% to 238 units.
The company said the coach segment benefited from a better production mix compared with the first quarter of 2025, even as the order book reflected the market’s usual seasonality. Marcopolo also cited the possibility that passengers shifting from other transport modes could support new sales.
In the urban segment, Marcopolo pointed to public-policy visibility as a potential trigger for new investments. The company also said higher diesel prices could weigh on demand. During the quarter, it delivered five Attivi electric buses.
Government programs remained a relevant part of the quarter. Marcopolo delivered 771 units to the Caminho da Escola school-bus program and 242 minibuses to Brazil’s Health Ministry. Remaining deliveries from phase 12 of Caminho da Escola and the first deliveries to the Health Ministry are still expected.
The company said it is qualified to supply as many as 7,210 units under phase 13 of Caminho da Escola, including 620 Volare vehicles, 2,220 urban buses and 4,370 minibuses. The tender took place on April 14, and deliveries are expected to affect the second half of 2026 and 2027.
International operations varied by market. South Africa showed better results despite lower volumes, helped by an improved sales mix. Argentina saw weaker production and deliveries at the start of 2026, though Marcopolo said aging fleets may lead to a new replacement cycle.
Australia was the standout among foreign operations, with revenue and profitability expanding in the quarter. Marcopolo said the unit has positive expectations for the year and is moving toward a possible new record. China started the year seeking earnings balance after lower volumes, while Colombia continued to deliver consistent results. Mexico is expected to show a modest recovery from the second quarter amid uncertainty in the local economy.
By segment, urban buses accounted for the largest share of net revenue in the quarter, at 29.6%. Coaches represented 27.4%, Volare vehicles 21.0%, chassis 10.2%, Banco Moneo, parts and other activities 10.1%, and minibuses 1.7%.
Marcopolo’s industrial net debt stood at 251.0 million reais at the end of the quarter, compared with 261.3 million reais a year earlier. The industrial net debt-to-EBITDA ratio remained at 0.2 times. Financial net debt rose to 1.30 billion reais from 1.08 billion reais.
The company said investments remain focused on industrial efficiency and research and development. It also cited ongoing cost and expense monitoring, the impact of a weaker dollar and expectations for volume growth from the second quarter.
Proceeds already approved by the company are scheduled to be paid on Friday (May 8), according to the presentation.
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