Kepler Weber Q2 2026 slides show diversification amid farm downturn

Kepler Weber reported its Q2 2026 financial results on August 13, 2026, highlighting a strategic shift toward diversifying its business portfolio amidst a difficult period for Brazilian agribusiness. Despite a significant decline in core farm equipment revenue, the company emphasized resilience through a broader range of business segments and disciplined financial management.

Soybean farmer margins have compressed to just 3.3% in 2026 from 55.6% in 2021 due to higher production costs and lower commodity prices, impacting the agricultural equipment sector. Kepler Weber's shares fell 2.57% to $5.67 in after-hours trading, near a 52-week low of $5.57, reflecting investor concerns about its traditional farm business despite growth in newer segments.

The company reported net revenue of R$299.1 million with EBITDA of R$25.9 million, a 8.7% margin, with first-half figures reaching R$617.1 million and a 9.7% margin. Net income was R$6.3 million, or 2.1% of revenue. Revenue and EBITDA declined substantially year-over-year, with EBITDA falling 31.7% and 34.4%, respectively, compared to 2025.

The Farms segment, Kepler Weber's core business, saw revenue drop 13.2% in Q2 and 25.4% in the first half, while the Ports and Terminals segment experienced even steeper declines of 50.1% and 51.9%, respectively. However, growth in the Agribusiness segment, driven by ethanol and biodiesel producers, offset these weaknesses, increasing by 17.9% in Q2 and 11.3% in the first half.

Replacement & Services also showed a 5.0% increase in Q2, though it declined 6.5% for the six-month period. Management explained the challenging operating environment, noting that Brazilian soybean farmers are experiencing historically low margins. Despite this, Kepler Weber's EBITDA margin of 13.9% for the past year compares favorably to the negative margins experienced during earlier downturns.

The company emphasized its diversification efforts, with revenue from non-traditional segments growing 90.6% since 2021, with a compound annual growth rate of 13.8%. Non-traditional segments now account for 40% of revenue, up from 26% in 2021. The company also highlighted strategic investments in new products, which have risen sevenfold since 2021 to R$13 million, representing 12% of revenue.

Operational metrics also improved, with total company expenses declining 2% to R$198 million, and 100% on-time delivery of projects.