Vibra Outperforms Estimates in Q1 2025 as Net Income Falls 23.8%

Vibra Energia reported net income of R$ 601 million ($100 million) in the first quarter, down 23.8% year-on-year, according to the company’s earnings release.

Analysts had forecast R$ 501 million ($84 million), based on LSEG estimates. The adjusted EBITDA rose 43.6% to R$ 2 billion ($333 million), reflecting stronger margins and operational discipline.

The distribution, service stations and B2B segment achieved adjusted EBITDA of R$ 1.8 billion ($300 million), up 28.5% year-on-year. The segment delivered R$ 215 in EBITDA per cubic meter, a 31.4% improvement.

The company credited this performance to efficiency programs and tighter commercial controls. Net revenues climbed 13% to R$ 45 billion, despite a 2.2% volume decline.

In renewables, Vibra generated R$ 1.2 billion ($200 million) in net revenue and R$ 268 million ($45 million) in EBITDA @stake, up 15.1% from Q1 2024.

The growth stemmed from increased solar output and higher power sales under long-term contracts. Management highlighted that renewables now account for 8% of total EBITDA.

Vibra Navigates Rising Leverage with Renewables Growth

Vibra ended March with net debt of R$ 20.5 billion ($3.42 billion), equal to 1.8 times last twelve-month adjusted EBITDA. The leverage ratio rose from 0.9 times at year-end 2024, driven by the Comerc acquisition and working capital shifts.

Vibra expects net debt leverage to peak near 2.5 times by year-end 2025 before declining. The company’s solid Q1 follows a challenging Q4 2024, when Vibra posted net profit of R$ 510 million ($85 million), down 84.5% from R$ 3.3 billion ($550 million).

That drop reflected lower tax recoveries and diminished non-core asset gains. For full-year 2024, Vibra reported net income of R$ 6.37 billion ($1.06 billion) and adjusted EBITDA of R$ 6.25 billion ($1.04 billion), supported by stable fuel margins and improved retail performance.

Since rebranding from BR Distribuidora in 2021, Vibra has focused on five pillars: fuel distribution, retail network, B2B solutions, lubricants and renewables.

In 2024, the company sold 35.8 million cubic meters, achieving R$ 175 in adjusted EBITDA per cubic meter. It also generated R$ 3.3 billion in free cash flow and maintained a 0.9 times leverage ratio.

Looking ahead, Vibra expects renewables segment EBITDA to reach R$ 1.3 billion in 2025. The company anticipates Comerc will break even in the second half and deliver positive cash flow by 2026. Management stated that structural efficiencies continue to shield margins from oil-price volatility.

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