Brazilian fuel distributors Vibra and Ultrapar reported robust first-quarter 2026 earnings, reflecting a marked improvement in fuel margins that lifted recurring adjusted EBITDA sharply from the prior quarter, according to a Thursday note from Jefferies.
Vibra results
Vibra recorded recurring adjusted EBITDA of BRL2.4 billion in the first quarter, a 50% increase from the fourth quarter of 2025 and consistent with FactSet consensus. Retail fuel margins climbed to BRL310 per cubic meter in Q1 from BRL194 per cubic meter in Q4 2025, a 60% quarter-over-quarter rise. The business-to-business channel also improved, with margins reaching BRL210 per cubic meter in Q1 versus BRL180 per cubic meter in the prior quarter.
On volumes, total sales were up 4% year-over-year. Retail volumes increased 6% year-over-year, while business-to-business volumes were up 1% year-over-year. Free cash flow for the quarter was BRL1.7 billion, and net leverage fell to 2x net debt to EBITDA from 2.4x at the end of 2025.
Ultrapar and Ipiranga
Ultrapar reported recurring adjusted EBITDA of BRL2.3 billion in the first quarter, a 30% increase quarter-over-quarter and roughly 15% above FactSet consensus. Its fuels arm, Ipiranga, was the primary driver, delivering BRL1.7 billion in adjusted EBITDA - a 56% rise from the prior quarter. Ipiranga's fuel margins increased to BRL276 per cubic meter in Q1 from BRL148 per cubic meter in Q4 2025.
Market price dynamics
Jefferies noted that international diesel prices in dollar terms have almost doubled year-to-date. Domestically, Petrobras (BVMF:PETR4) raised wholesale fuel prices by about 25%, and average diesel pump prices in Brazil are up 34%. Jefferies estimates that domestic diesel prices remain around 40% below import parity.
The results point to a near-term earnings boost for Brazil's fuel distribution sector driven by widened margins and elevated international diesel prices. Jefferies' note provides the specific margin and cash flow figures underpinning the quarter's performance.