Tupy S.A

What it is

Founded on 9 March 1938 by Albano Schmidt, Hermann Metz and Arno Schwarz, Tupy has grown from a local foundry in Joinville into a world reference in the research, development and manufacture of high-complexity structural components in cast iron. Its core product — engine blocks, cylinder heads and structural castings — goes into heavy trucks, tractors, power generators and construction machines.

The company employs more than 20,000 workers across plants in Joinville (its headquarters), São Paulo and Betim in Brazil, Saltillo and Ramos Arizpe in Mexico, and Aveiro in Portugal. Its products reach customers in more than 40 countries.

In 2021 Tupy acquired MWM, a maker of engines for agribusiness and industry, adding plants in São Paulo state; the deal pushed Tupy into the energy and power-generation sector. MWM contributed R$2.6bn (US$504m) of revenue in 2025 — about 27% of consolidated sales.

Who owns it

The two largest shareholders are BNDESPar — the investment arm of Brazil’s state development bank — with 30.7% of shares, and Previ, the pension fund of Banco do Brasil employees, with 27.0%. Trígono Capital, a Brazilian asset manager, holds a further 10%.

Charles River, another fund manager, holds 5.4%.

Together the three largest holders control nearly 68% of the company, leaving a free float of roughly 36% (our calculation). Tupy is listed on the Novo Mercado segment of B3, Brazil’s exchange, which requires the highest standard of corporate governance.

Who runs it

Harro Ricardo Schlorke Burmann was elected CEO by the Board of Directors, with his mandate beginning 1 June 2026, concluding a succession process supported by headhunter Heidrick & Struggles. Burmann brings more than 35 years of industrial leadership experience, having served as regional president and global VP of operations at Dana Group, as well as president of Estaleiro Atlântico Sul and chief operating officer of Hidrovias do Brasil.

The CFO role is held by Rodrigo Perico, VP of Finance and Administration, who has spoken publicly on results calls; Perico explained that the 2025 impairments are part of a strategic plan to reduce capacity and reallocate production to more efficient lines. Burmann is the third CEO in fourteen months — a sequence that has weighed on investor confidence.

The money, in plain words

Tupy’s sales have fallen for three straight years — from R$11.4bn (US$2.2bn) in 2023 to R$9.7bn (US$1.88bn) in 2025, a drop of 15% (our calculation). The 2025 decline of 9% year-on-year was driven by a 10% fall in volumes, especially in commercial vehicles, amid global uncertainty over trade tariffs, emissions rules and high interest rates.

The company lost R$657m (US$127m) in 2025 — a net margin of –7.8% and a return on equity of –26.1%, meaning owners effectively destroyed value in the year. The reported loss was swelled by R$544m (US$106 mn) of restructuring charges, the largest single item being a R$327m (US$63 mn) write-down of assets whose book value exceeded what they could realistically earn going forward.

Strip out those one-off write-downs and the operating core is still under pressure, though not catastrophic. Net debt — what the company owes lenders after netting off its cash — ended 2025 at R$2.2bn (US$427m), down 5% from 2024; the cash pile of R$1.85bn (US$359m) provides a meaningful liquidity cushion.

The balance sheet shows total debt of R$4.09bn (US$794 mn) against equity of R$2.50bn (US$485 mn), a leverage ratio that demands close watching (our calculation).

What it is doing now

Through its restructuring Tupy expanded its contract portfolio, signing new agreements representing R$1.4bn (US$272 mn) in incremental annual revenues in the commercial vehicle and off-road segments. Within MWM, the energy and decarbonisation segment grew 16% in 2025, reaching R$781m (US$152 mn) in revenue, while the spare-parts distribution arm grew 12% to R$567m (US$110 mn).

Management targets the second half of 2026 as when the savings from its capacity-reduction programme will begin to show in the financial results. The arrival of Burmann — an outsider with a record of turning around complex industrial operations — is the clearest signal that the board wants execution, not politics, at the top.

What to watch

• CEO transition: Burmann took his seat on 1 June 2026; how quickly he wins the confidence of minority shareholders — who were openly hostile to his predecessor — will matter as much as any financial metric in the near term.
• North American volumes: The company is navigating weaker production volumes as the US market — its largest export destination — slows, squeezing both demand and profitability.
• Restructuring payoff: Management has described the 2025 impairments as primarily an accounting reflection of strategy already executed, and not indicative of further write-downs. Whether operating margins recover as promised in 2026 H2 is the key test.
• State-shareholder governance: BNDESPar and Previ together control 57.7% of votes. Their influence over CEO selection has already shaken the stock once; the market will watch whether they back Burmann’s operational agenda or reassert political priorities.

This is news, not investment advice.