Earnings release
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T TUPY TUPY 2Q26 Highlights Results improved sequentially , driven by volume recovery , operational efficiency , and financial discipline Earnings Call Date : Aug / 07 / 2026 Portuguese / English 11:00 a.m. ( BRT ) / 10:00 a.m. ( ET ) Link : Webinar TUPY3 Website : www.tupy.com.br/ri Video : TUPY3 Comments Investor Relations Gueitiro Genso VP New Businesses and Innovation and IRO Hugo Zierth IR Manager Renan Oliveira IR Coordinator dri@tupy.com.br ■ Net Revenue : R $ 2.5 billion ( -6 % vs. 2Q25 ) , with sales volumes remaining flat vs. 2Q25 . Performance reflected the average appreciation of the Brazilian real against the U.S. dollar ( + 11 % ) and weaker domestic market conditions , partially offset by growth in commercial vehicle applications in international markets . Revenue increased by 7 % over 1Q26 , reflecting the recovery in international sales volumes and market share gains in the Structural Components segment , driven by new project launches and the resumption of existing programs . ▪ Operating Cash Flow : R $ 303 million generated during the period , primarily reflecting working capital management , including a R $ 117 million reduction in inventories and the monetization of surplus contracted energy for future periods , totaling R $ 30 million . As a result , the cash conversion cycle decreased by 26 days compared to 2Q25 and by 5 days compared to 1Q26 . ■ ■ Adjusted EBITDA : R $ 156 million ( -26 % vs. 2Q25 ) , with a margin of 6.3 % ( vs. 8.0 % in 2Q25 and 4.3 % in 1Q26 ) . Year - over - year performance was impacted by R $ 104 million due to the appreciation of the Brazilian real and the Mexican peso against the U.S. dollar , as well as lower production volumes , which reduced fixed - cost absorption . These effects were partially offset by operational efficiency initiatives and an improved product mix , which contributed R $ 68 million . The 200 - basis - point margin expansion compared to 1Q26 mainly reflects higher volumes and the progress of efficiency projects , with direct impacts on costs and improvements in operational and quality indicators . Net result : loss of R $ 11 million ( vs. net income of R $ 24 million in 2Q25 ) , primarily reflecting weaker operating performance . Net Debt : R $ 1.9 billion , down by 26 % from 2Q25 and by 8 % from 1Q26 . The net debt / Adjusted EBITDA ratio reached 4.14x ( vs. 4.02x in 1Q26 ) , as a result of lower adjusted EBITDA accumulated over the last twelve months .
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TUPY S.A. | Earnings Release 2 MESSAGE FROM MANAGEMENT The second quarter of 2026 was marked by sequential improvement in results compared with recent quarters. Although results remained below 2Q25 levels, volume recovery and progress in capacity optimization and operational efficiency initiatives contributed to improved financial and operating indicators while reinforcing disciplined execution of the Company’s strategy. Sales volumes remained flat from 2Q25 and increased over previous quarters. The order backlog for key international market segments points to continued growth in the second half of the year, reflecting improved profitability among transportation companies and increased infrastructure investments in the United States and Europe. The Company continues to expand its presence in strategic segments through new contracts at different stages of ramp-up. For 2026, we expect revenue from new projects to exceed R$600 million, of which approximately R$250 million was recognized in the first half of the year. In addition to foundry operations, some of these contracts include higher value-added services. As part of the ongoing optimization of its industrial footprint, the Company discontinued one shift on the Betim (MG) engine block and cylinder head production line in April, reallocating production to Joinville (SC). Measures implemented during the first half generated an estimated R$40 million in benefits, with additional gains of more than R$60 million expected in the second half. The full realization of these benefits will depend on the completion of the transfers, approvals, operational stabilization, and the effective reduction of the cost structure. Initiatives focused on quality, maintenance, productivity, and service levels generated R$23 million in benefits during the first half of the year. For the full year, these initiatives are expected to generate approximately R$140 million in benefits. Together, these initiatives strengthen the Company's operating base. Effective capture of these benefits, continued volume recovery, and the mitigation of foreign exchange and inflationary pressures will be key drivers of margin expansion and deleveraging. Priorities for the Second Half The order backlog for the second half indicates growth compared to the previous year and volumes above budget. The e ffective conversion of this backlog into sales and EBITDA will depend on customers' production levels and the pace of order fulfillment. In this recovery scenario, higher asset utilization is expected to improve fixed-cost absorption and drive sequential margin expansion. In addition to market developments, improved results will depend primarily on the execution of internal initiatives, including the ramp -up of new contracts, industrial footprint optimization, productivity improvements, and gains in quality and maintenance. Disciplined capital allocation and higher returns on invested capital remain key priorities and will continue to guide the Company's decisions in the coming quarters. Financial Performance Despite the sequential improvement in results , performance continued to be affected by weaker economic activity in certain domestic market segments, reflecting high interest rates as well as the
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TUPY S.A. | Earnings Release 3 appreciation of the Brazilian real and the Mexican peso against the U.S. dollar. These factors weighed on revenue and margins during the period. In this context, consolidated net revenue totaled R$2.5 billion in 2Q26, down by 6% from 2Q25. Performance reflected, among other factors, the 11% appreciation of the Brazilian real against the U.S. dollar, which affected foreign currency -denominated revenue. Compared to 1Q26, net revenue increased by 7%, reflecting the gradual recovery in demand. Adjusted EBITDA reached R$156 million, down by 26% year over year, with a margin of 6.3% on net revenue. The appreciation of the Brazilian real and the Mexican peso against the U.S. dollar had a negative R$104 million impact on results. This effect was partially offset by cost reduction initiatives, operational efficiency gains, and an improved product mix, which together contributed R$68 million during the quarter. Compared to 1Q26, Adjusted EBITDA grew by 57%, with a 200-basis-point margin expansion. In this environment, working capital management has become even more relevant. Initiatives implemented over recent quarters reduced the cash conversion cycle by 26 days compared to 2Q25 and by 5 days compared to 1Q26. Among these initiatives, the R$117 million reduction in inventories was particularly noteworthy. Operating cash flow reached R$303 million during the period, up by 185% over 2Q25, primarily driven by disciplined working capital management. Net debt totaled R$1.9 billion, down by 26% from 2Q25 and by 8% from 1Q26. Leverage, measured by the net debt/LTM Adjusted EBITDA ratio, reached 4.1x and remains a management priority. Although still affected by lower Adjusted EBITDA over the last twelve months, this metric now reflects a more favorable trend, supported by expectations of continued improvement in operating performance. Priorities for the second half include improving operational efficiency, completing capacity optimization initiatives, accelerating the ramp -up of new contracts, and capturing the benefits of initiatives currently underway. The Company entered the second h alf of 2026 with a stronger order backlog and a significant pipeline of ongoing initiatives. The realization of these initiatives will depend on converting the backlog into sales, stabilizing new products, and capturing the expected operational gains, which should support further margin expansion and deleveraging. Management
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TUPY S.A. | Earnings Release 4 SUMMARIZED RESULTS Consolidated (R$ thousand) SUMMARY 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Revenues 2,475,302 2,627,369 -5.8% 4,781,461 5,110,413 -6.4% Cost of goods sold (2,175,758) (2,262,465) -3.8% (4,247,887) (4,364,425) -2.7% Gross Profit 299,544 364,904 -17.9% 533,574 745,988 -28.5% % on Revenues 12.1% 13.9% 11.2% 14.6% Operating expenses (236,238) (250,255) -5.6% (464,520) (478,978) -3.0% Other operating expenses (36,032) (37,438) -3.8% (81,664) (76,443) 6.8% Income/Loss before Financial Result 27,274 77,211 -64.7% (12,610) 190,567 - % on Revenues 1.1% 2.9% - 3.7% Net financial result (34,424) (34,680) -0.7% (84,134) (137,271) -38.7% Income/Loss before Tax Effects (7,150) 42,531 - (96,744) 53,296 - % on Revenues - 1.6% - 1.0% Income tax and social contribution (3,702) (18,596) -80.1% (8,299) (41,554) -80.0% Net Income/Loss (10,852) 23,935 - (105,043) 11,742 - % on Revenues - 0.9% - 0.2% EBITDA (CVM Resolution 156/22) 121,647 174,432 -30.3% 176,896 383,445 -53.9% % on Revenues 4.9% 6.6% 3.7% 7.5% Adjusted EBITDA* 155,583 209,760 -25.8% 254,368 457,049 -44.3% % on Revenues 6.3% 8.0% 5.3% 8.9% Average exchange rate (BRL/USD) 5.05 5.67 -10.9% 5.15 5.76 -10.5% Average exchange rate (BRL/EUR) 5.87 6.42 -8.6% 6.01 6.29 -4.5% Closing exchange rate (BRL/USD) 5.18 5.46 -5.1% 5.18 5.46 -5.1% Closing exchange rate (BRL/EUR) 5.91 6.42 -8.0% 5.91 6.42 -8.0% * A reconciliation of Adjusted EBITDA is presented in the "EBITDA" section of this release.
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TUPY S.A. | Earnings Release 5 REVENUES In 2Q26, 38% of revenue originated in North America. South and Central Americas accounted for 42%, while Europe accounted for 17%. The remaining 3% came from Asia, Africa, and Oceania. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Revenues 2,475,302 2,627,369 -5.8% 4,781,461 5,110,413 -6.4% Domestic Market 983,045 1,140,680 -13.8% 1,876,147 2,098,465 -10.6% Structural Components and Manufacturing Contracts 689,686 802,532 -14.1% 1,284,605 1,473,412 -12.8% Commercial vehicles (and passenger cars) 618,082 706,021 -12.5% 1,151,608 1,291,581 -10.8% Off-road 71,604 96,511 -25.8% 132,997 181,831 -26.9% Energy & Decarbonization 134,598 175,682 -23.4% 288,124 306,699 -6.1% Distribution 158,761 162,466 -2.3% 303,418 318,354 -4.7% Aftermarket 110,368 112,457 -1.9% 216,824 222,644 -2.6% Hydraulic products 48,393 50,009 -3.2% 86,594 95,710 -9.5% Export Market 1,492,257 1,486,689 0.4% 2,905,314 3,011,948 -3.5% Structural Components and Manufacturing Contracts 1,437,929 1,423,056 1.0% 2,796,907 2,878,720 -2.8% Commercial vehicles (and passenger cars) 999,272 965,780 3.5% 2,004,516 1,994,599 0.5% Off-road 438,657 457,276 -4.1% 792,391 884,121 -10.4% Energy & Decarbonization 22,519 16,269 38.4% 39,196 48,122 -18.5% Distribution 31,809 47,364 -32.8% 69,211 85,106 -18.7% Aftermarket 22,040 28,158 -21.7% 42,936 50,145 -14.4% Hydraulic products 9,769 19,206 -49.1% 26,275 34,961 -24.8% Note: the division among applications considers our best assumption for cases in which the same product is in two applications.
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TUPY S.A. | Earnings Release 6 REVENUE BY BUSINESS UNIT Structural Components and Manufacturing Contracts Revenue declined in 2Q26, primarily due to weaker domestic demand and the appreciation of the Brazilian real (average BRL/USD exchange rate of 5.05 in 2Q26 vs. 5.67 in 2Q25), which weighed on the performance of the Structural Components Business Unit. These effects were partially offset by higher sales for commercial vehicle applications in international markets and continued growth in new products. In North America, higher truck orders from OEMs are already translating into stronger demand for the Company, supported by improved freight rates and reduced regulatory uncertainty. For the second half of the year, the order backlog points to higher volumes compared to both the first half of 2026 and the same period of 2025. The c onversion of this order backlog will depend on customers' production levels, execution of contracted programs, and the operational stabilization of new programs. In the European market, demand for commercial vehicles continued to recover gradually, supported by fleet renewal, infrastructure investments, and higher freight transportation activity. In Brazil, the heavy -duty vehicle market remained challenging, reflecting high interest rates, tighter financing conditions, and weaker agribusiness activity, which continues to face elevated delinquency levels. In this environment, heavy truck production declined 14% in 2Q26, according to ANFAVEA data, affecting the Structural Components and Manufacturing Contracts Business Units. Sales volumes for off-road applications, which are characterized by long production cycles, continued to perform well, particularly in international markets. Higher demand for large-engine applications in data centers, non-residential construction, and mining helped offset the effects of weaker agribusiness activity in both domestic and international markets. Revenue fro m these international markets, however, was affected by the appreciation of the Brazilian real against the U.S. dollar. Approximately 45% of revenue was generated by higher value-added products, including machined and/or assembled services.
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TUPY S.A. | Earnings Release 7 Energy & Decarbonization Performance in 2Q26 was primarily affected by lower sales of generator sets, reflecting high interest rates and tighter credit conditions. This effect was partially offset by higher sales of the Company's proprietary engines for the mining and construction segments, both in Brazil and in international markets. Revenue in this Business Unit declined by 18% from 2Q25 and accounted for 6% of the Company’s total revenue in 2Q26. Aftermarket Revenue from the aftermarket segment declined by 6% in 2Q26. A more challenging macroeconomic environment, characterized by high interest rates, lower transportation activity, and weaker agribusiness conditions, led distributors to reduce inventory levels , while fleet operators deferred maintenance activities early in the year. The new product lines — “Masterparts” (a multi-brand product line) and “Optional” (a competitive ly positioned MWM-branded product line) — grew by 5% and accounted for approximately 25% of the segment’s revenue (vs. 22% in 2Q25). The segment accounted for 5% of the Company's total revenue in 2Q26.
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TUPY S.A. | Earnings Release 8 COST OF GOODS SOLD AND OPERATING EXPENSES The Cost of Goods Sold (COGS) totaled R$2.2 billion in 2Q26, down by 4% from 2Q25. Gross margin was 12.1% (vs. 13.9%), affected, among other factors, by lower production volumes and higher labor costs. In the first six months of the year, gross margin reached 11.2% (vs. 14.6% in the prior year), impacted by lower sales and production volumes, as well as the appreciation of the brazilian real and the mexican peso. Lower production volumes had an approximately R$22 million negative impact on results due to lower fixed-cost absorption and reduced operational efficiency. These effects were more than offset by approximately R$34 million in gains from capacity optimization initiatives, lower maintenance expenses, and improvements in quality indicators. Costs in 2Q26 were also affected by: ▪ Raw materials: lower costs, driven by material price deflation and efficiency gains; ▪ Labor: higher costs, primarily reflecting inflation (annual wage adjustments) and workforce expansion to support future demand (overtime), offset by operational efficiency initiatives; ▪ Maintenance and third -party services: lower maintenance costs, reflecting operational efficiency gains; ▪ Energy: lower costs, due to price deflation and the sale of surplus energy; ▪ Other operating costs: reversal of provisions for material losses, as well as the appreciation of the Mexican peso. Operating expenses (administrative and selling expenses) totaled R$236 million in the quarter, down by 6% from 2Q25, reflecting lower freight expenses, favorable foreign exchange effects, and efficiency gains. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Revenues 2,475,302 2,627,369 -5.8% 4,781,461 5,110,413 -6.4% Cost of Goods Sold (2,175,758) (2,262,465) -3.8% (4,247,887) (4,364,425) -2.7% Raw material (1,278,865) (1,377,789) -7.2% (2,486,339) (2,600,538) -4.4% Labor, profit sharing, and social benefits (531,855) (480,682) 10.6% (1,018,987) (947,423) 7.6% Maintenance materials and third parties (144,687) (167,964) -13.9% (285,269) (335,449) -15.0% Energy (96,210) (105,463) -8.8% (193,275) (216,915) -10.9% Depreciation (82,184) (85,712) -4.1% (166,996) (170,926) -2.3% Others (41,957) (44,855) -6.5% (97,021) (93,174) 4.1% Gross profit 299,544 364,904 -17.9% 533,574 745,988 -28.5% % on Revenues 12.1% 13.9% 11.2% 14.6% Operating expenses (236,238) (250,255) -5.6% (464,520) (478,978) -3.0% % on Revenues 9.5% 9.5% 9.7% 9.4%
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TUPY S.A. | Earnings Release 9 OTHER INCOME AND EXPENSES Other Net Operating Expenses decreased by 4% year over year, from R$37 million in 2Q25 to R$36 million in 2Q26. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Creation and restatement of provisions (27,544) (24,345) 13.1% (44,310) (44,401) -0.2% Restructuring expenses - (3,919) - (8,112) (16,756) -51.6% PIS/COFINS on the sale of IPI tax credits - - - (7,981) - - Write-off of PP&E, unusable assets, and others (6,392) (7,064) -9.5% (17,069) (12,447) 37.1% Other operating expenses (33,936) (35,328) -3.9% (77,472) (73,604) 5.3% Depreciation of non-operating assets (2,096) (2,110) -0.7% (4,192) (2,839) 47.7% Total other operating expenses, net (36,032) (37,438) -3.8% (81,664) (76,443) 6.8% NET FINANCIAL RESULT Net Financial Result was an expense of R$34 million in 2Q26 vs. R$35 million in 2Q25. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Financial expenses (94,709) (93,881) 0.9% (191,056) (181,836) 5.1% Financial income 36,731 33,282 10.4% 83,450 67,036 24.5% Net monetary and currency variations 23,554 25,919 -9.1% 23,472 (22,471) - Net Financial Result (34,424) (34,680) -0.7% (84,134) (137,271) -38.7% Financial expenses totaled R$95 million, remaining broadly in line with the same period last year. Financial income reached R$37 million, reflecting the higher cash position in Brazilian reais. Net monetary and foreign exchange gains totaled R$24 million during the period, consisting of (i) R$13 million in positive foreign exchange effects on foreign currency-denominated balance sheet accounts, and (ii) R$11 million in hedge results, consisting of R$15 million in cash gains from settled transactions and a R$4 million mark-to-market loss on foreign exchange hedging instruments.
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TUPY S.A. | Earnings Release 10 INCOME (LOSS) BEFORE TAX EFFECTS AND NET INCOME (LOSS) The Company reported a net loss of R$11 million in 2Q26, primarily reflecting weaker operating performance during the period. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Income before Tax Effects (7,150) 42,531 - (96,744) 53,296 - Tax effects before currency impacts (29,209) (27,295) 7.0% (29,084) (45,646) -36.3% Income before the currency effects on the tax base (36,359) 15,236 - (125,828) 7,650 - Currency effects on the tax base 25,507 8,699 193.2% 20,785 4,092 407.9% Net Income (10,852) 23,935 - (105,043) 11,742 - The tax bases of the assets and liabilities of the company’s Mexican subsidiaries, whose functional currency is the U.S. dollar, are maintained in Mexican pesos at their historical values. As exchange rates fluctuate, the tax bases are affected, and the resulting foreign exchange effects are reco gnized as deferred income tax revenues and/or expenses. In 2Q26, the Company recognized R$25 million in non- cash deferred income tax revenue resulting from the appreciation of the Mexican peso against the U.S. dollar. EBITDA The combination of the aforementioned factors resulted in an EBITDA (CVM Resolution 156/22) of R$122 million. Adjusted EBITDA, excluding other operating income and expenses, reached R$156 million, with a margin of 6.3% in 2Q26 (vs. 8.0% in 2Q25 and 4.3% in 1Q26). The sequential improvement marks a turning point, but profitability has not yet returned to normalized levels. Consolidated (R$ thousand) RECONCILIATION OF NET INCOME WITH EBITDA 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] Net Income for the Period (10,852) 23,935 - (105,043) 11,742 - (+) Net Financial Result 34,424 34,680 -0.7% 84,134 137,271 -38.7% (+) Income Tax and Social Contribution 3,702 18,596 -80.1% 8,299 41,554 -80.0% (+) Depreciation and Amortization 94,373 97,221 -2.9% 189,506 192,878 -1.7% EBITDA (CVM Resolution 156/22) 121,647 174,432 -30.3% 176,896 383,445 -53.9% % on revenues 4.9% 6.6% 3.7% 7.5% (+) Other Operating Expenses, Net 33,936 35,328 -3.9% 77,472 73,604 5.3% Adjusted EBITDA 155,583 209,760 -25.8% 254,368 457,049 -44.3% % on revenues 6.3% 8.0% 5.3% 8.9% The Adjusted EBITDA margin of the traditional business, which includes structural components and hydraulic products, reached 5% in 2Q26 vs. 7% in 2Q25. In turn, the margins of MWM’s operations — encompassing Manufacturing Contracts, Aftermarket Parts, and Energy & Decarbonization — were 9% and 10%, respectively. The combination of flat sales volumes and lower production volumes negatively impacted results by R$6 million compared to the same period last year. Lower fixed -cost absorption and reduced operational efficiency resulting from this scenario weighed on the period's results.
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TUPY S.A. | Earnings Release 11 Additionally, the appreciation of the Brazilian real and the Mexican peso against the U.S. dollar negatively impacted results by R$104 million. This effect was partially offset by a more favorable product mix, driven by a higher share of higher value-added products, as well as by cost and expense reduction initiatives and operational efficiency improvements, resulting in net gains of R$68 million. R$ million and Adjusted EBITDA Margin INVESTMENTS IN PP&E AND INTANGIBLE ASSETS Investments in PP&E and intangible assets totaled R$79 million in 2Q26 (accrual basis), down by 22% from the R$102 million reported in 2Q25. Consolidated (R$ thousand) 2Q26 2Q25 Var. [%] 1H26 1H25 Var. [%] PP&E Strategic investments 40,892 47,152 -13.3% 72,002 79,929 -9.9% Maintenance and modernization of operational capacity 25,561 47,035 -45.7% 50,257 69,149 -27.3% Environment 3,216 1,635 96.7% 4,532 4,027 12.5% Interest and financial charges 2,524 1,736 45.4% 4,664 3,904 19.5% Intangible assets Software 4,629 1,868 147.8% 8,520 2,908 193.0% Projects under development 2,540 2,620 -3.1% 3,233 4,095 -21.1% 79,362 102,046 -22.2% 143,208 164,012 -12.7% % on Revenues 3.2% 3.9% 3.0% 3.2% The figures primarily relate to new foundry and machining programs, operational efficiency improvements, synergies across operations, and investments in health, safety, and the environment.
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TUPY S.A. | Earnings Release 12 WORKING CAPITAL Consolidated (R$ thousand) 2Q26 1Q26 4Q25 3Q25 2Q25 Balance Sheet Accounts receivable 1,723,598 1,674,779 1,597,455 1,660,082 1,935,840 Inventories 1,513,652 1,630,172 1,721,952 1,979,252 2,041,125 Accounts payable 1,386,186 1,321,574 1,137,117 1,289,374 1,321,633 Advances from Customers 115,919 110,060 114,379 110,614 151,504 Sales outstanding [days] 67 64 60 61 68 Inventories [days] 66 70 74 85 86 Payables outstanding [days] 67 63 56 60 62 Cash conversion cycle [days] 66 71 78 86 92 The cash conversion cycle declined by 26 days compared to 2Q25, mainly driven by a 20-day reduction in inventory levels. Compared to 1Q26, the cash conversion cycle improved by five days. The main changes were as follows: ▪ Accounts receivable increased by R$49 million, resulting in a three -day increase in the average collection period, primarily due to higher sales volumes in 2Q26. Accounts receivable denominated in foreign currencies, which accounted for 65% of the total, were affected by the appreciation of the Brazilian real against the U.S. dollar (closing BRL/USD exchange rate of 5.18 in June 2026, compared with 5.22 in March 2026). ▪ Inventories decreased by R$117 million during the period, improving working capital by four days, primarily driven by management initiatives, particularly reduction s in finished goods and work-in-process inventories. ▪ Accounts payable increased the average payment period by four days, reflecting higher purchasing volumes, particularly toward the end of the quarter. Accounts payable denominated in foreign currencies, which accounted for 41% of the total, were affected by the appreciation of foreign currencies. The calculation of days payable outstanding (DPO) includes customer advances related to manufacturing contract s. In 2Q26, th ese advances totaled R$116 million, compared to R$110 million in 1Q26.
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TUPY S.A. | Earnings Release 13 CASH FLOW Consolidated (R$ thousand) CASH FLOW SUMMARY 2Q26 2Q25 Var.[%] 1H26 1H25 Var.[%] Cash and cash equivalents at the beginning of the period 1,821,335 1,713,478 6.3% 1,853,156 2,376,203 -22.0% Cash from operating activities 303,368 106,418 185.1% 501,642 174,265 187.9% Cash used in investing activities (61,694) (102,709) -39.9% (148,254) (210,018) -29.4% Cash provided by (used in) financing activities (14,176) (269,990) -94.7% (106,993) (798,913) -86.6% Currency effect on the cash for the year (12,062) (10,573) 14.1% (62,780) (104,913) -40.2% Increase (decrease) in cash and cash equivalents 215,436 (276,854) - 183,615 (939,579) - Cash and cash equivalents at the end of the period 2,036,771 1,436,624 41.8% 2,036,771 1,436,624 41.8% Operating cash flow reached R$303 million during the period, primarily reflecting disciplined working capital management, highlighted by a R$117 million reduction in inventories and an improvement in the cash conversion cycle. Results also benefited from the non-recurring sale of surplus future energy, generating R$30 million. Investing activities consumed R$62 million in 2Q26, compared to R$103 million in 2Q25. Regarding financing activities, cash consumption totaled R$14 million in 2Q26, primarily related to debenture interest payments and lease and FINEP amortizations. The comparison period was affected by the amortization of export prepayment agreements (ACC), totaling R$159 million in 2Q25, as well as share repurchases totaling R$102 million. The combination of these factors, together with the R$12 million negative effect of foreign exchange translation on cash, resulted in an increase of R$215 million in cash and cash equivalents. Accordingly, the Company ended 1H26 with cash and cash equivalents totaling R$2,037 million. INDEBTEDNESS The Company ended 2Q26 with net debt of R$1.9 billion, down by 26% and 8% from 2Q25 and 1Q26, respectively. The decline in LTM Adjusted EBITDA (R$458 million in 2Q26 vs. R$512 million in 1Q26) contributed to an increase in leverage, which reached 4.14x. Liabilities denominated in foreign currency accounted for 57% of total debt (3% short-term and 97% long-term), while liabilities denominated in Brazilian reais accounted for 43% (7% short-term and 93% long-term). Cash and cash equivalents were 52% denominated in foreign currency and 48% denominated in Brazilian reais.
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TUPY S.A. | Earnings Release 14 Consolidated (R$ thousand) INDEBTEDNESS 2Q26 1Q26 4Q25 3Q25 2Q25 Short term 191,937 127,338 214,586 127,239 196,248 Financing and loans 188,508 125,252 212,756 127,036 195,483 Financial instruments and derivatives 3,429 2,086 1,830 203 765 Long term 3,752,808 3,770,090 3,881,960 3,812,511 3,848,700 Gross debt 3,944,745 3,897,428 4,096,546 3,939,750 4,044,948 Cash and cash equivalents 2,036,771 1,821,335 1,853,156 1,648,624 1,436,624 Financial instruments and derivatives 9,200 16,922 31,703 31,121 40,547 Net debt 1,898,774 2,059,171 2,211,687 2,260,005 2,567,777 Gross debt/Adjusted EBITDA 8.61x 7.61x 6.20x 4.51x 3.86x Net debt/Adjusted EBITDA 4.14x 4.02x 3.35x 2,58x 2.45x The Company’s debt profile is as follows (R$ million): SUBSEQUENT EVENTS Financing Agreement In addition to the Quarterly Financial Information as of June 30, 2026, the Company announces that it has entered into a financing agreement with the Brazilian Development Bank (BNDES) under the Brazil Sovereign Program (“Programa Brasil Soberano”), as previously disclosed in the Notice to the Market issued on July 27, 2026. The financing totals R$600 million and comprises two credit facilities: Working Capital (R$300 million, at an interest rate of 11.90% p.a.) and Export Working Capital (R$300 million, at an interest rate of 10.41% p.a.). Both facilities have a 60-month term and a 12-month grace period.
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TUPY S.A. | Earnings Release 15 As of the date on which this Quarterly Financial Information was approved, the funds had not yet been disbursed and remained subject to the fulfillment of the conditions precedent provided for in the respective financing agreements. The transaction provides appropriate financing conditions to optimize the Company's capital structure and support its sustainable growth strategy, in accordance with the terms and conditions agreed with BNDES. Vice Presidency of Finance and Administration At a meeting held on July 31, 2026, the Board of Directors approved the leadership transition of the Company’s Vice Presidency of Finance and Administration, resolving on the succession of Mr. Rodrigo Cesar Périco, effective August 10, 2026, and electing Mr. Augusto Ribeiro Junior to serve as Executive Vice President of Finance and Administration and Investor Relations Officer, with his investiture scheduled for the same date. He will serve for the remainder of the unified term of office applicable to the other members of the Executive Board, ending on April 30, 2028.