This Video Conference will be held exclusively in Portuguese. The transcript of the event in English will later be made available on the Company's IR website. The video and presentation of this Video Conference will be published on the Company's website https://www.vulcabrasri.com and on the CVM after the market closes.
Please be advised that all participants will only be listening to the Video Conference during the presentation and then We will start the Q&A session when further instructions will be provided.
Please be advised that forecasts about future events are subject to risks and uncertainties that could cause such expectations not to materialize or to differ from expectations. These forecasts express an opinion only on the date they are made and the Company does not undertake to update them.
Present with us today are Mr. Pedro Bartelle CEO and Wagner Dantas, CFO and Investor Relations Officer.
Now we are going to watch an institutional video and in the sequence we return with Mr. Pedro Bartelle
Click here and select 4T25 Videoconferência
Mr. Pedro BartelleThe combination of strong brands, a vertically integrated business model, and a commercial strategy that captures opportunities without compromising profitability enabled Vulcabras (VULC3) to surpass its own records and deliver another year of historic results in 2025.
The Company reported gross revenue of R$ 4.2 billion, a new record, representing growth of 16.7% compared to 2024. The gross margin of 41.0% demonstrates the Company's ability and resilience in maintaining profitability despite all challenges related to direct labor, which were intensified by the accelerated production growth throughout the year. Recurring EBITDA totaled R$ 763.1 million, up 13.0% year over year. The recurring EBITDA
margin reached 21.4%, while recurring net income amounted to R$ 572.9 million, with a recurring net margin of 16.1%.
During the year, the e-commerce channel continued its accelerated growth, increasing 25.0%, from R$ 433.7 million in 2024 to R$ 543.1 million in 2025, and representing 15.3% of total net revenue.
Revenue from the Athletic Footwear division grew 17.4% in the year to date, reflecting the strength of the brands and the strategy of expanding the high-performance product portfolio, adding value and driving an increase in average ticket.
Vulcabras closed 4Q25 reaching a new historic milestone: net revenue exceeding R$ 1 billion in a single quarter. With growth of 11.4% compared to 4Q24, the Company posted its 22nd consecutive quarter of growth.
By category, Athletic Footwear grew 11.2% in the quarter, driven by a more premium mix across all group brands, with emphasis on higher value-added products in high performance, running and sports lifestyle, contributing to the increase in average price. The Apparel division increased 12.7%, also reflecting portfolio enhancement by brand and continuous improvement in product mix.
Gross margin in the quarter reached 41.4%, virtually in line with 4Q24, reinforcing the significant gains in operational and manufacturing efficiencies following a period of accelerated expansion of the workforce across industrial units. The EBITDA margin reached 21.9%, 0.7 p.p. higher than in 4Q24, reflecting the combination of quality growth, significant progress in manufacturing efficiencies, and the capture of operating leverage across channels.
Firm in its commitment to maximizing shareholder returns, and amid the ongoing discussions regarding tax reform and the taxation of dividends, Vulcabras carried out a significant distribution totaling R$ 1,541.9 million in 2025, of which R$ 563.3 million returned to the Company's cash position through the private subscription completed in December.
To support this distribution, Vulcabras closed the period with net debt of R$ 769.4 million, equivalent to 0.9x EBITDA, a level previously aligned with the Company's strategy to strengthen its capital structure, while preserving financial balance and maintaining investment capacity to sustain growth in the coming years. In 2025, our strategy prioritized investments that supported accelerated growth while preserving the flexibility and resilience of our business model.
As we enter 2026, production remains stable and operating efficiencies are at normalized levels. Inventory levels of our brands at retail are healthy, and we maintain an optimistic outlook supported by order books for the first-half collections, which continue to be driven by the strong sell-out performance of our products. We remain confident in our
ability to continue growing, innovating, and generating value for our consumers and shareholders.
We now turn the floor over to Mr. Wagner Dantas CFO and Investor Relations Officer.
Wagner Dantas:Good Morning, everyone
We will begin our presentation with gross billed volume, one of the Company's main operating indicators, as shown on slide 5.4Q25 was marked by a more intense and prolonged promotional environment in retail, both physical and online. Discount campaigns, which were previously concentrated around Black Friday, began as early as October. This extension of the promotional calendar throughout the quarter led to greater dispersion of demand and reduced the concentration traditionally observed during the Christmas period.
In this context, Vulcabras remained committed to its strategy of commercial discipline, efficient inventory management, and preservation of brand positioning, prioritizing sales with quality and profitability. This approach reinforced the Company's commitment to delivering sustainable results, even in more challenging environments.
In 4Q25, gross billed volume reached 9.2 million pairs/pieces, representing growth of 0.2% compared to 4Q24. It is worth noting that the comparison base in 4Q24 already reflected strong performance, particularly in Athletic Footwear, a category that had grown 6.6% in that period. Therefore, maintaining volume levels in 4Q25 highlights the Company's operational and commercial consistency.
Despite stable volumes, consolidated revenue increased, driven by an improved product mix and higher average ticket, which contributed to the recovery of gross margin and the expansion of EBITDA margin in the quarter.
The Athletic Footwear category recorded volume of 5.9 million pairs in 4Q25, a decrease of 1.7% compared to 4Q24, remaining broadly in line with 3Q25 levels and supporting 3.2% growth in the second half of 2025. This performance reflects the increasing share of more technological models in the mix, which require greater complexity and longer production times. This movement was accompanied by a 13.0% increase in average ticket compared to 4Q24, highlighting the qualitative improvement in sales. Demand remained solid in both the domestic and Foreign Market, sustaining the high level of commercialization in the category.
Others Footwear and Others declined by 2.0% in 4Q25, due to lower volumes of professional-use boots, partially offset by growth in Athletic flip-flops volumes.
Apparel and Accessories recorded growth of 7.8% in 4Q25, with all three brands delivering positive performance, with Under Armour (UA) standing out. The result reflects the strengthening of the Company's presence in this segment and the consolidation of its portfolio diversification strategy.
Moving on to slide 6, we will now analyze Net Revenue segmented by category, where we can more clearly observe the evolution of our portfolio.In 4Q25, we maintained consistent revenue growth, consolidating the progress achieved throughout the year. We recorded our 22nd consecutive quarter of expansion, with Net Revenue of BRL 1,008.6 million, up 11.4% compared to 4Q24, even against a very strong comparison base, which had already grown 15.0% versus the same period of the previous year, highlighting the consistency and recurrence of our growth trajectory.
The Athletic Footwear category grew 11.2%, with all three brands advancing, particularly driven by Olympikus' running line. Others Footwear and Others increased by 12.0%, mainly driven by Athletic flip-flops. Apparel and Accessories grew 12.7%, with Under Armour standing out and continued expansion of Olympikus in the segment.
In 2025, Net Revenue totaled BRL 3,560.3 million, 16.8% higher than in 2024, when it reached BRL 3,048.6 million.
We continue to grow with balance, commercial discipline, and a focus on value-added products.
Moving on to slide 7, we now detail Net Revenue by market, highlighting performance in Brazil and in the Foreign Market.In the domestic market, we closed 4Q25 with Net Revenue of BRL 977.7 million, representing growth of 11.5% compared to 4Q24. All categories delivered growth, even against a strong comparison base. This result reflects the consistent evolution of our brands, the strengthening of our distribution, and the efficiency of our commercial initiatives, supporting another quarter of solid growth in Brazil.
In the Foreign Market, revenue reached BRL 30.9 million in the quarter, up 7.7%, indicating greater stability in international operations, despite the still challenging environment in Latin America.
For the full year 2025, the domestic market grew 17.8%, totaling BRL 3,430.2 million, mainly driven by the strength of Athletic Footwear. Meanwhile, the Foreign Market totaled BRL 130.1 million for the year, a decrease of 4.4%, reflecting the challenges faced throughout the year, particularly in Argentina.
On slide 8, we analyze the performance of the e-commerce channel, which continues to be one of the Company's key strategic growth pillars.Amid a retail environment characterized by intense discounting throughout nearly the entire quarter, the commercial strategy implemented in the e-commerce channel focused
on maintaining the positioning of key product stories, protecting and capturing healthy margins, especially within the marketplace sub-channel, where discounting was even more aggressive.
As a result, even with more moderate revenue growth, we continued to expand the channel's EBITDA margin.
E-commerce Net Revenue totaled BRL 147.8 million in 4Q25, up 3.8%, representing 14.7% of consolidated revenue.
For the full year, the channel grew 25.2%, reaching BRL 543.1 million and accounting for 15.3% of the Company's total revenue, reinforcing the strategic importance of digital within our business model.
Moving on to Slide 9, we present Gross Profit and Gross Margin.In 4Q25, we recorded Gross Profit of BRL 417.9 million, an increase of 10.9% compared to the same period of the previous year. Gross Margin stood at 41.4%, 0.2 percentage points below 4Q24.
Despite this slight decline, it is important to highlight that the pressure observed was significantly lower than in previous quarters, when we concentrated the increase in direct labor headcount. This already indicates a meaningful improvement in operational efficiency and a consistent progression in our profitability trajectory.
For the full year, Gross Profit totaled BRL 1,461.0 million, representing an increase of 14.3% compared to the same period of the previous year. Gross Margin for 2025 was 41.0%, 0.9 percentage points below the level recorded in 2024.
On slide 10, we detail selling expenses and their evolution over the period.In 4Q25, selling expenses, advertising, and expected credit loss (ECL) totaled BRL 176.4 million, an increase of 5.5% compared to the same period in 2024.
Excluding advertising investments, selling expenses and ECL amounted to BRL 122.1 million, up only 0.7%. As a percentage of Net Revenue, there was a meaningful efficiency gain, with a reduction of 1.3 percentage points, reaching 12.1% in the quarter. This improvement mainly reflects the new mix of brands, products, and channels, with a lower impact from commissions and provisions for losses.
For the full year, selling expenses excluding advertising increased by 9.4%, totaling BRL
441.8 million. Even so, they represented 12.4% of Net Revenue, a reduction of 0.8 percentage points compared to 2024.
Now moving on to Slide 11, we will detail Advertising and Marketing expenses, analyzing their evolution during the quarter and the main factors that contributed to this movement.In 4Q25, investments in advertising and marketing totaled BRL 54.3 million, an increase of 18.3% compared to the same quarter, representing 5.4% of Net Revenue, 0.3 percentage points above 4Q24.
This movement reflects the intensification of brand communication and positioning initiatives, especially in the context of Olympikus' 50th anniversary celebrations.
Throughout the quarter, we strengthened brand management through product launches, activations, and presence at strategic events. Olympikus consolidated its leadership in running by sponsoring 38 races across 26 cities throughout the year, bringing together more than 150 thousand runners and earning important market recognitions.
Mizuno advanced with the launch of the Neo Line, the result of collaboration between Brazil and Japan, while also strengthening its performance pillars and cultural relevance. Meanwhile, Under Armour expanded its connection with Generation Z and the sports lifestyle through activations and relevant product launches.
For the full year 2025, investments in advertising totaled BRL 193.8 million, an increase of 25.7%, representing 5.4% of Net Revenue, reinforcing our strategy of brand building as a key pillar for sustainable growth.
Moving on to Slide 12, we will cover General and Administrative Expenses.In 4Q25, general and administrative expenses totaled BRL 59.8 million, an increase of 12.0% compared to the same quarter, mainly reflecting higher IT expenses related to ecommerce platforms and extraordinary expenses with advisory and consulting services.
Despite the nominal increase, expenses remained stable relative to revenue, representing 5.9% in the quarter, in line with 4Q24.
For the full year 2025, general and administrative expenses totaled BRL 216.7 million, up 21.9%. As a percentage of Net Revenue, this represents an increase of 0.3 percentage points compared to 2024.
It is important to highlight that the year was impacted by non-recurring events. Excluding these effects, recurring expenses would total BRL 207.4 million, equivalent to 5.8% of revenue, reinforcing the Company's continued discipline and control over its administrative structure.
Now moving on to Slide 13, we will discuss Financial Result and Net Debt, highlighting the key factors from the quarter and their effects on the Company's capital structure.In 4Q25, net financial result was an expense of BRL 20.4 million, compared to a gain of BRL 1.7 million in 4Q24. This movement mainly reflects higher interest expenses, resulting from the increase in financial liabilities during the second half of the year, especially following the significant dividend distribution.
For the full year 2025, the financial result was positively impacted by non-recurring effects related to the recovery of PIS/COFINS tax credits, which added BRL 127.9 million to the annual result. Excluding these effects, the recurring financial result was an expense of BRL
26.8 million, reflecting the Company's new leverage profile throughout the year.
We closed 2025 with net debt of BRL 769.4 million, compared to BRL 22.6 million at the end of 2024. This increase is mainly related to the issuance of debentures in the amount of BRL 500 million in July, driven by higher working capital needs, accelerated CAPEX, and the robust dividend distribution carried out during the year.
On slide 14, we present Net Income and Adjusted ROIC, indicators that highlight the Company's operational efficiency and its ability to generate value on invested capital.In 4Q25, we recorded Net Income of BRL 158.8 million, a decrease of 6.1% compared to the same period of the previous year, with a net margin of 15.7%, down 3.0 percentage points.
This variation mainly reflects the increase in financial expenses, due to the Company's new leverage profile, as well as higher income tax and social contribution expenses recognized in the quarter. Together, these factors negatively impacted results by BRL
34.2 million in the quarterly comparison.
Even so, we delivered another quarter of robust earnings, supported by strong sales performance and greater dilution of operating expenses, which partially offset the financial and tax pressures.
For the full year 2025, Net Income totaled BRL 1,165.3 million, an increase of 104.5%, with a net margin of 32.7%. It is important to highlight that the annual result was positively impacted by BRL 592.4 million related to PIS/COFINS tax credits and the recognition of deferred taxes. Excluding these non-recurring effects, Net Income reached BRL 572.9 million, highlighting the Company's consistent operating cash generation throughout the year.
Annualized adjusted ROIC reached 44.2%, an increase of 14.7 percentage points compared to the level reported as of December 31, 2024.
Now, on slide 15, we will detail the EBITDA performance.In 4Q25, EBITDA totaled BRL 220.7 million, an increase of 14.8% compared to the same quarter, with a margin of 21.9%, up 0.7 percentage points versus 4Q24.
For the full year 2025, EBITDA reached BRL 884.0 million, an increase of 28.7%, with a margin of 24.8%, expanding by 2.3 percentage points compared to 2024.
It is important to highlight that the year's EBITDA was positively impacted by BRL 120.9 million from non-recurring effects related to PIS/COFINS tax credits, with a 3.4 percentage point impact on the margin.
Excluding these effects, recurring EBITDA would have totaled BRL 763.1 million, representing growth of 13.0%, with a margin of 21.4%, reflecting the consistent improvement in operational performance throughout the year.
Moving on to slide 16, we will discuss CAPEX.In 4Q25, we invested BRL 63.7 million in property, plant and equipment and intangible assets, representing a decrease of 9.0% year over year.
This variation is mainly related to the seasonality of investments. In 2025, we concentrated disbursements between April and September, a period in which we accelerated the expansion of installed capacity, including the expansion of the manufacturing footprint and the reinforcement of our workforce, whereas in 2024, investments were made more evenly throughout the year.
Now, moving on to slide 17, we will address Cash Flow, highlighting the main components that influenced the variation during the period.We closed 2025 with cash of BRL 206.8 million and net debt of BRL 769.4 million. Even after a significant dividend distribution throughout the year, we maintained a solid capital structure and leverage at a conservative level, reinforcing the Company's ability to pursue growth opportunities with discipline and responsibility, while preserving its cash generation and payment capacity.
Cash variation in the year totaled BRL 107.4 million, reflecting a balanced combination of strong operating cash generation and strategic capital allocation decisions.
Among the main movements during the period, we highlight EBITDA of BRL 884.0 million; a capital increase of BRL 567.7 million, resulting from the Private Subscription of Shares and the exercise of the Stock Option plan; a gain in financial results of BRL 101.1 million; an increase in bank liabilities of BRL 639.4 million; higher working capital needs of BRL
294.7 million; investments in property, plant and equipment and intangible assets of BRL
241.4 million; changes in long-term assets and liabilities of BRL 155.1 million; in addition to the distribution of BRL 1,541.9 million in dividends during the year.
This set of movements demonstrates Vulcabras' financial strength and the consistency of our growth strategy focused on generating value for shareholders.
We conclude our presentation here and, from this point on, we are available to answer your questions. Questions and Answers Victor Rogatis, Itaú BBA:Good morning, Pedro, good morning, Wagner, and the entire Vulca team. Thank you for taking our questions.
The first one is as follows: You delivered a fantastic 2025 in terms of sales, especially in the Athletic Footwear category. When we look at volume, this category grew 3.5%, while ticket increased by nearly 13%. My first question is: how are you thinking about 2026 in terms of ticket and volume, and whether you plan to do anything differently this year compared to what you did in the past?
And the second question is: regarding the dividend payout level for this year, what are you roughly targeting? Thank you, everyone. Best regards.
Pedro Bartelle:Well, Good morning, everyone. Thank you for the question, Rogatis. We have now delivered 22 consecutive quarters of growth. In fact, we have been expanding our collection, our product portfolio, adjusting some prices, and improving our mix. So, we are operating across multiple price ranges and in new categories.
The trend is to continue expanding. We entered 2026 with a very positive order book, including a record level for the Company, and we continue our agenda of increasing our participation, especially in the running segment in Brazil, which has been growing significantly, whether driven by new generations or by access to quality products that Vulcabras is able to offer, particularly through Olympikus, which delivers excellent value for money and has been expanding running in Brazil.
We are launching even more sophisticated products in certain price ranges where we previously did not operate, and we are maintaining the same agenda. We intend to continue at the same pace from 2025 into 2026. Some improvements are being planned for 2026. We mentioned earlier some pressure on our efficiency due to accelerated hiring last year, which normalized in 4Q, and going forward we intend to continue our agenda of expanding our product portfolio and growing sales.
Wagner, I think you can take the second part.
Wagner Dantas:Yes, certainly. Regarding our dividends, I believe the Company has maintained over the past three years, and even longer than that, a strong dividend distribution agenda, with discipline and a mindset focused on pursuing the best capital allocation based on the cash the Company generates.
So, we always assess our cash position and our level of indebtedness. Any excess cash for which we do not have an investment, CAPEX, or a new business opportunity that, in our assessments, would maintain the Company's ROIC at the levels we target, we have, over this period, been returning to shareholders, allowing them to decide where best to allocate that cash, in cases where the Company did not have a new project at that moment.
The fact is that last year, within the scope of the Tax Reform, we had the introduction of dividend taxation, and we implemented an agenda of anticipation and acceleration of these distributions, going beyond our cash generation and beyond the net cash position we had been operating with in recent years.
As a result, we distributed more than BRL 1.5 billion in total. If we recall, the monthly dividend we proposed almost two years ago, on an annualized basis, amounted to a little over BRL 400 million. It is also worth noting that, of the BRL 1.5 billion in dividends distributed or announced throughout last year, just over BRL 500 million returned to the Company's cash through a private subscription. This private subscription was, in fact, the mechanism we used to keep this amount eligible for a future capital reduction without exposure to taxation, while also avoiding further increasing the Company's leverage to levels that, in our view, would become unreasonable given the current interest rate environment in Brazil.
As of December 31, we reported a financial leverage of 0.9x EBITDA, below 1x EBITDA. Compared to other companies and listed peers, this is a very low leverage level by market standards, but it is, in fact, above our comfort zone, which is between zero and 0.5x EBITDA.
So, I believe our mindset for 2026 is to use this cash generation to reduce indebtedness. In our plans, we intend to end 2026 in the lower range, not with leverage between 0.5x and 1x EBITDA, but closer to zero to 0.5x EBITDA. And I think the good news is that we are able to resolve this in the short term.
The Company's cash generation remains strong, investments will be maintained, and the balance sheet remains, even with 0.9x EBITDA leverage, ready to capture and embrace new organic and inorganic opportunities that may arise. So, the first point is: leverage is not a concern, but it is a task we will address throughout 2026. Once this is done, any excess cash will return to the dynamic we have followed over the past few years. That is, excess cash without a project that delivers ROIC at our target levels will be returned through dividends or other tools recently approved at our Shareholders' Meeting. Today, we can deliver this payout through dividends, interest on equity (JCP), capital reduction, or even share buybacks.
And going back to your question, Rogatis, thank you, as this has been a point of doubt for some other investors as well. I am spending some time here to address it thoroughly and cover those additional questions. We maintain our minimum payout of 25%. Therefore, 2026 net income will be distributed at a minimum of 25%, in any scenario. What I believe is that once we return to a leverage level between zero and 0.5x EBITDA, we will resume a more proactive dividend agenda, returning to shareholders the cash for which we do not have an investment that sustains ROIC at the levels we typically target.
Eric Huang, Santander:Good morning, Pedro. Good morning, Wagner. Thank you for taking our questions. Two from our side.
First, looking at the digital channel, growth slowed somewhat during the quarter. I believe part of that is related to discipline in a more promotional market environment. So, I would like to better understand how you are viewing this channel specifically, how the environment is currently evolving, whether it remains more promotional or if you are already seeing some improvement. And what are your expectations for this channel throughout the year?
Also, looking at the apparel category, which had a strong quarter in 4Q, we would like to understand how you are thinking about growth opportunities for 2026 with the new launches, particularly at Olympikus, and how this may connect with a potential opportunity to expand more aggressively into the store network with a greater focus on apparel. Thank you.
Pedro Bartelle:I will start here. Eric, thank you for your question. We grew our digital channel by 25% in 2025 and, in fact, your interpretation of our strategy is absolutely correct. We are the owners or representatives of the brands in Brazil, and we have a commitment to the profitability of our Company and of our clients, so we do not participate in these large-scale discount events. Black Friday, for us, is not something that I believe even the broader retail sector has not been very fond of it but we ourselves do not participate in these promotions for a few reasons. One of them is to preserve our margins, but also because we are a verticalized and fast company, we do not build inventory, so we do not generate excess stock. Therefore, we do not have overhang, we do not import far in advance, leftovers, and so on.
What happens is that the market is still highly promotional. I think it is worth highlighting 4Q, because in 4Q we recovered margins and grew a little over 11% while facing this heavy discounting environment in the market. This is a scenario that has become normal in Brazil today, and we have learned to operate within it, but we will continue our ecommerce growth agenda, although not at any cost.
Our e-commerce and our own stores which I will touch on next are profitable. Since the first year we internalized our e-commerce at Vulcabras, it has already been profitable. Today, it represents slightly more than 15% of revenue and continues to show growth potential.
Now, connecting to your second question regarding apparel, which is very much related to this topic. Apparel in Brazil faces a structural issue: most athletic footwear sold in Brazil is sold in shoe stores or sporting goods retailers that do not sell apparel or accessories. Therefore, there is a channel limitation to properly showcase the brands' full proposition,
whether apparel, accessories, or a complete offering. Our apparel business has been growing, but it has been growing mainly due to our increased participation in ecommerce. E-commerce has been driving apparel sales.
In addition, speaking about stores, we currently have 18 stores, with two already contracted to be opened in the near term and a third under negotiation. This may not seem very significant within the Company, but we are building a physical retail structure. Our digital retail is already considered by us to be quite efficient and mature. Last year, we brought in a new board member, Alberto Serrentino from Varese, who has been helping us map out all aspects of retail, technological evolution, omnichannel strategy, and so on. This is a project that is being developed internally. And I do see an increase in our direct sales, as they are complementary, especially to drive apparel and accessories sales.
So, our agenda remains one of organic growth. Opportunities may arise, whether in brands or businesses, and we always maintain a strong mapping of the market, but the core agenda is growth, both in wholesale and in direct-to-consumer sales.
Eric Huang:Great, thank you, Pedro.
Pedro Bartelle:Thank you, Eric.
Laryssa Sumer, XP:Good morning, everyone. Pedro, Wagner, thank you for taking our questions. Two quick ones from our side. I believe most have already been addressed, but if you could comment a bit on how you are thinking about expenses throughout 2026. In 2025, you were somewhat more intensive in marketing, largely due to Olympikus' anniversary. Can we think of this line normalizing this year and creating a bit more room for operating leverage? Is there any other line where you have already identified the need for additional investment? How are you thinking about it?
And, building on this investment topic, could you also talk a bit about CAPEX? You just mentioned store openings in your response to Eric. How are you thinking about CAPEX investments? Is there still anything related to production capacity? Just to give us a sense of what you are seeing for the year. Thank you.
Pedro Bartelle:Thank you, Laryssa. Let me start here. Our expenses in 2026, at the beginning of the year, particularly marketing, are still somewhat higher due to Olympikus' 50th anniversary, but they will not increase as a percentage compared to last year. In our view, they should remain stable or even slightly lower.
We made additional CAPEX investments last year to support this growth, including expansions and machinery purchases. This more intensive CAPEX cycle was carried out last year, and it will not be necessary this year. Our planning shows that the most recent investments are sufficient to sustain our current growth pace for at least the next two years, so CAPEX should trend lower.
This is a year, as we have been saying, to monetize those investments. We are really focused on gaining efficiency after significant hiring and major investments. Over the past few years, we imposed major challenges on Vulcabras by bringing in substantial technological advancements, expanding our product portfolio, expanding soles, developing new formulations, materials, products, and propulsion plates. We have been learning how to work with highly advanced technology products, and this always involves a learning curve. Today, we have a strong command of this, and we have been launching new products, but now within technologies that are already well established within the Company.
So, I believe we should maintain our strategy, which, in our view, has been very successful, continuing to grow, expand, and capture opportunities in a segment that is growing faster than the market, namely the running and health-oriented segment, which has proven to be a very strong path for us. Particularly in running, where we identified this trend six years ago, we invested heavily, created the Olympikus Corre line, expanded the Under Armour and Mizuno collections, and today we see, for example, Olympikus having the most used running shoe among Brazilian runners for the third consecutive year, according to Strava. It is also the sixth most searched term on Google, and by far the most relevant footwear-related search in Brazil is Olympikus Corre.
So, I believe there has been very strong execution, and now it is time to scale it. Expand the product portfolio and continue growing organically with these three brands.
Wagner Dantas:I believe I would just add a brief comment on expenses. Throughout 2025, we demonstrated our ability to capture meaningful operating leverage. Perhaps this is not entirely clear in the consolidated numbers, but our B2C, our e-commerce, grew by 25%.
E-commerce, in fact, grows faster than wholesale and the Company as a whole, and this should actually act as a headwind, as it typically carries higher SG&A as a percentage of revenue compared to the traditional wholesale operation.
However, that is not what we saw in our results. In fact, the same gap, or the same behavior, the same delta in gross margin was fully reflected in the recurring EBITDA margin. So, growing faster in a channel that structurally has higher SG&A, without this being reflected in the consolidated figures, demonstrates the Company's ability throughout 2025, and which we expect to maintain in 2026, to capture a meaningful level of operating leverage.
Laryssa Sumer:Very clear, everyone. Thank you for taking our questions and congratulations again on the results.
Wagner Dantas:Thank you.
Isabella Lamas, UBS:Good morning, Pedro, Wagner. Thank you for the opportunity. Two points from our side.
First, I would like to dive a bit deeper into the volume dynamics in the quarter. You highlighted the evolution of the mix, with a higher share of higher value-added products, which naturally leads to a higher ticket and lower volume. I would like to understand whether this dynamic can continue going forward. Should we expect a more significant ticket contribution to the top line in the coming quarters, or even in a more structural way?
Or was there any one-off effect in the quarter, perhaps related to a more competitive or promotional environment? Was there any impact from consumer purchasing power, or do you believe that the price increases implemented throughout the year may have had some effect? How are you seeing this elasticity? That would be my first point.
On the other hand, the second point, still related to the top line, is that you mentioned a strong order book for the first half. Looking ahead to the near term, could you provide more details on how demand is evolving in terms of brands, categories, and product lines? We are expecting the launch of Corre 5, so any additional color on how demand has been behaving would be helpful. That is it, thank you.
Wagner Dantas:Isabella, thank you for your question. I will start by addressing 4Q in a bit more detail, and then Pedro will follow up with our forward-looking view.
I think 4Q has an important context to highlight, which is the consumption environment in Brazil and retail overall. Across other segments, especially other retail and apparel companies, 4Q was quite challenging in terms of consumption and volumes.
We were able to grow in a more qualified way through a more technical product portfolio, with a mix that carries a higher average ticket. We essentially maintained volumes flat in absolute terms, at around 6 million pairs during the quarter, and we chose not to participate in the highly aggressive discounting that took place during this period.
So, we did not see or capture signs of volume loss or indications that consumers were unable to keep up with the price increases we implemented across our collections. We did see volume stability, and we also saw continued demand for our brands, but not at price levels that we considered reasonable or healthy for commercialization.
From a strategic standpoint, as part of our culture and mindset, we will always seek decisions that create shareholder value and preserve margins. There is a phrase we use frequently: we have a very strong appetite for growth, but we will not grow at any cost. Other brands may be willing to sustain volumes or grow at any cost, but that is not Vulcabras' approach.
Given the strength of our technologies, the positioning of our brands, and the effectiveness of our marketing, we concluded 4Q very satisfied with the results achieved, not only due to margin expansion but also because of volumes and how we navigated a very challenging environment, one that was heavily driven by aggressive discounting during the period.
Pedro Bartelle:Thank you, Wagner. Isabella, I will talk a bit about 2026. It is clear that the Company has been growing for 22 consecutive quarters, so normally order books should increase year after year, but we were actually surprised by the strong demand and the volume of orders we booked last year. So, we entered 2026 with a very well-defined first half, which demonstrates the strength of our strategy and our products.
Now, speaking more specifically about our strategies, we have just launched one of our flagship products, Pace, a highly technological product, a premium positioning product, with fantastic nitrogen expansion characteristics without compression. Half of the midsole is produced by a robot, and the other half by people. We were able to develop a 140-gram product that competes among the lightest in the market while preserving our stability characteristics. We included an insole in the product, whereas most competitors do not. We developed a full-length propulsion plate, while some competitors reduce the size to achieve lower weight. We do not use rubber on the outsole, but rather another compound, and we use polyamide in the upper.
These are several technological advancements that we have been bringing into the Company, which clearly help with positioning, but also aim to generate improvements that can later cascade into our broader collection, allowing us to deliver even more technological innovation to our consumers.
This is a flagship product that has just been launched. Corre 5 will be launched at the end of this month, and we are very satisfied with the initial feedback. It represents a significant evolution from Corre 4, making it an even better product. At Olympikus, it is interesting to note that the success of our franchises, such as Corre, Max, and Turbo, has been, as we like to say internally, generating "offspring." We have been expanding these franchises, creating more advanced products as well as some more accessible ones, in order to democratize these running categories, whether cushioning, speed, or propulsion. So, the collection continues to expand.
Therefore, I believe that within these price ranges and the new segments we are entering, the mix will continue to evolve. As these products are more sophisticated, the Olympikus
mix should continue to move upward, with increasing average value driven by the higher value-added of the products.
It is also very interesting to talk about Under Armour and Mizuno. Under Armour did not previously have a running collection, and now it does, developed and created by us, including the technology, and this will be introduced to the market starting this year. So, Under Armour will also participate in this major running boom taking place in Brazil.
As for Mizuno, which has always been a very strong running brand, we have also developed a locally produced collection within the Neo line, which has been in the market since the end of last year and is already growing.
So, we will continue to expand our product portfolio to maintain this growth trajectory. Brazil is a country that, as you have seen, is unstable and full of uncertainties, but regardless of that, we have been doing our homework to expand our business and continue growing. Therefore, in our view and in our targets, we intend to maintain the levels of growth, product launches, and investments that we have been making, with somewhat lower investment intensity now in production capacity, while continuing to invest in technological development.
Isabella Lamas:Understood, very clear. If I may ask a quick follow-up, since Wagner mentioned Under Armour, specifically regarding Under Armour apparel. You already discussed the apparel dynamics, which performed very well, but you highlighted Under Armour as a standout. I would like to understand whether there was any targeted sales effort or specific initiative that drove this performance. Just so we can better understand this point, which we view as very positive. Thank you.
Pedro Bartelle:The most relevant apparel brand within the Company is Under Armour. Although, in terms of total revenue among the three brands, it is the smallest. However, Under Armour was born in apparel, and globally about 80% of its revenue comes from apparel and accessories, including within apparel itself.
We have been able to expand Under Armour sales. We believe the collection is very competitive, a winning collection with strong technology, but this expansion has been driven by our direct sales, because the channels through which we distribute, and with which we have excellent relationships across Brazil, have certain limitations in terms of apparel sales. Therefore, to grow, we need direct channels. E-commerce is extremely relevant for this, as well as some of the stores we have opened, and the future is to expand this direct participation so that apparel can grow even further.
I see a significant opportunity for Under Armour to grow in apparel and accessories in Brazil, provided that we expand our channels.
Isabella Lamas:That's great, thank you very much, everyone.
Wagner Dantas:Thank you.
Operator:Once again, to ask a question, simply click on "raise hand." If you prefer to submit a written question, please click on the Q&A icon. Please wait while we collect the questions.
Wagner Dantas:Well, we have answered several questions and I believe we have covered almost all of those submitted through the chat. There is one question here that I think we have not addressed, or a topic that has not been explored in depth, and I will read it so we can move toward closing, also in respect of time.
Lucas de OliveiraYou mentioned that gross margin was impacted by inefficiencies related to direct labor hiring in previous quarters. Although stabilization began in October, can we already consider that the learning curve of the new manufacturing capacity has been overcome, and will we see cleaner operating leverage in COGS in 1H26?
Wagner DantasThank you, Lucas, for your question. Yes, I believe we completed the cycle of accelerated hiring toward the end of September. Since then, we have kept our production and our workforce stable. That does not mean we have stopped hiring, as there is currently a meaningful level of turnover in Brazil. Absenteeism is still a pain point that has not yet been resolved. If there is a somewhat positive signal, it is that it has stabilized; however, the negative side is that it has stabilized at levels significantly higher than what we historically experienced.
So, I believe 4Q was a quarter in which we demonstrated very relevant improvement. We had margin gaps of 1.7 p.p. in 2Q and 3Q, and we essentially closed that gap. For 1H, we will likely still face some challenges, but on a path toward either fully closing those margin gaps or getting very close to it. I believe more meaningful improvements should be expected throughout 2H, also supported by price increases that we will be implementing during 2026.
It is also important to remember that, as of January 1, 2026, we are dealing with the second phase of payroll tax reinstatement. This is another burden within the so-called "Brazil cost" embedded in our production. However, Vulcabras has already demonstrated, and remains confident in, its ability to pursue efficiency gains, find ways
to mitigate these pressures, and pass through price increases to the market when necessary.
I'm not sure if you have anything to add.
Pedro Bartelle:I believe Wagner covered it perfectly. It is a new reality. Unfortunately, absenteeism has been increasing, and we had to learn how to operate under these conditions throughout the year. It has decreased somewhat, but has not returned to normal levels. Turnover has also increased, which creates the need for a slightly larger workforce to ensure that we have properly trained personnel.
We are not building our targets or budgets assuming this will improve. If it does improve, results will improve accordingly, but we have learned to operate under these conditions. Brazil presents new challenges every day, and we need to adapt. Vulcabras is an agile and fast company, we adapt very well, we have learned to deal with this additional difficulty, and the results are showing.
Operator:Thank you. As there are no further questions, I would like to turn the floor over to Mr. Pedro for his closing remarks.
Pedro Bartelle:I would just like to thank everyone. Thank you for your questions. I believe we covered the main topics. I will leave our Investor Relations team available to address any further questions, and we remain at your disposal.
I invite you all to visit our websites, our Instagram, and so on, to see our initiatives. We have been building a very interesting relationship with the running community and with the Brazilian sports consumer, which has greatly strengthened our brands. So, I invite all of you to follow us.
Thank you very much and good morning to everyone.
Wagner Dantas:Thank you. Good morning, everyone.
Operator:The Vulcabras conference call is now concluded. Thank you all for your participation and have a great day!
Attachments
- Original document
- Permalink
Disclaimer
Vulcabras SA published this content on April 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 13, 2026 at 22:27 UTC.
