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• Recurring EBITDA (Q4 2024): BRL1,284 million, a 23% decrease year-over-year.

• Recurring EBITDA (2024): BRL5,377 million, a 4% decrease from 2023.

• Net Income (2024): BRL2,526 million, unchanged from 2023.

• Dividends (2024): Total distribution of BRL769 million, with an additional payment of BRL493 million approved.

• Operational Cash Generation (2024): BRL3,736 million, a 3% decrease from 2023.

• CapEx (2024): BRL2,213 million, a 14% increase over 2023.

• Leverage: Increased from 1.3x to 1.4x due to lower LTM EBITDA.

• Ipiranga Sales Volume (2024): 2% growth, with a 5% increase in the outdoor cycle and a 1% drop in diesel.

• Ipiranga Service Stations (2024): 5,860, in line with 2023.

• AmPm Stores (Q4 2024): 1,450 stores, with a 9% same-store sales growth.

• Ipiranga EBITDA (Q4 2024): BRL1,841 million; recurring EBITDA BRL844 million, a 27% decrease year-over-year.

• Ultragaz Recurring EBITDA (Q4 2024): BRL441 million, a 9% growth year-over-year.

• Ultragaz Recurring EBITDA (2024): BRL1,687 million, a 2% growth over 2023.

• Ultracargo Net Revenue (Q4 2024): BRL283 million, a 10% increase year-over-year.

• Ultracargo EBITDA (Q4 2024): BRL169 million, a 9% growth year-over-year.

• Ultracargo EBITDA (2024): BRL668 million, a 6% growth over 2023.

• Investments (2024): BRL2,213 million, with 59% allocated to expansion.

• Warning! GuruFocus has detected 5 Warning Signs with FSK.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ultrapar Participacoes SA (NYSE:UGP) maintained strong operational cash flow generation, allowing for increased investment levels while keeping financial leverage at comfortable levels.

• The company made significant investments, including a BRL1.8 billion acquisition of a 42% stake in Indrofus to Brazil and the acquisition of Witzler for BRL124 million, enhancing its energy solutions portfolio.

• Ultragaz and Ultracargo showed growth, with Ultragaz's recurring EBITDA growing by 9% year over year and Ultracargo's EBITDA increasing by 9% as well.

• The company announced an additional dividend payment of BRL493 million, totaling BRL769 million in dividends for 2024, reflecting a commitment to returning value to shareholders.

• Ultracargo experienced a 10% increase in net revenue year over year, driven by higher cubic meters sold and improved sales mix.

Negative Points

• Ultrapar's recurring EBITDA decreased by 23% in the fourth quarter of 2024 compared to the same period in 2023, primarily due to lower EBITDA at Ipiranga and losses from Hidrovias.

• The company faced challenges in the fuel industry due to unlawful practices, such as tax evasion and fuel adulteration, impacting Ipiranga's margins and market share.

• Ipiranga's recurring EBITDA decreased by 27% year over year, affected by reduced margins due to unlawful practices and higher inventory levels.

• Ultrapar's leverage increased from 1.3 times to 1.4 times in the last quarter due to lower LTM EBITDA, despite a reduction in net debt.

• The competitive environment in the fuel industry remains challenging, with unlawful activities affecting profitability and market dynamics.