Ultrapar Participações S.A. reported a total EBITDA of BRL 2.07 billion in Q2 2025, driven by BRL 677 million in extraordinary tax credits at Ipiranga. Recurring EBITDA for the quarter increased by 15% year-over-year to BRL 1.468 billion, primarily due to the consolidation of Hidrovias' results and improved performance at Ultragaz.
Net income surged by 134% year-over-year to BRL 1.151 billion, reflecting these higher operating results and the one-off tax credit. Operational cash generation remained robust, reaching BRL 1.848 billion in Q2 2025, a 73% growth compared to the same period last year, excluding a BRL 909 million reduction in draft discount.
Net debt at the end of Q2 2025 was BRL 12.635 billion, resulting in a net debt to EBITDA (LTM) ratio of 1.9x, up from 1.7x in the prior quarter due to the draft discount reduction and Hidrovias consolidation. Management anticipates strong cash flow generation in the second half of 2025, expecting leverage to return to year-end 2024 levels.
Segment performance showed mixed results: Ipiranga's recurring EBITDA decreased by 13% to BRL 678 million due to lower volumes, while Ultragaz's recurring adjusted EBITDA increased by 11% to BRL 442 million. Ultracargo's EBITDA decreased by 15% to BRL 141 million, but Hidrovias contributed BRL 276 million in recurring EBITDA to Ultrapar, with its own recurring adjusted EBITDA surging by 39% to BRL 348 million.
The company successfully raised BRL 1 billion at Ipiranga at a competitive average cost of 106% of the CDI, below its current average cost of debt. This demonstrates continued access to favorable funding and strengthens its financial flexibility.
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