Should You Invest in Ultrapar Participações (UGP), Here's What You Need to Know
During the first quarter of 2025, Ultrapar Participações S.A. (NYSE:UGP) reported a recurring EBITDA of BRL 1.322 billion. Management noted that this figure excludes a significant negative impact of BRL 139 million from the share of loss in Hidrovias, which experienced one of the worst drops in its North and South corridors. As a result, when accounting for this loss, the EBITDA fell 9% year-over-year. Moreover, the net income for the quarter reached BRL 502 million, reflecting a 20% year-over-year decline considering the Hidrovias loss.
A bustling oil terminal with trucks and tankers lined up to receive fuel.
On the bright side, Ultragaz's LPG sales volume grew 1% year-over-year, driven by a 2% increase in bottled LPG sales due to stronger market demand. In addition, Ipiranga's recurring EBITDA rose 6% year-over-year to BRL 826 million, benefiting from higher margins due to inventory gains from fuel price adjustments and resolution of tax irregularities.
Ultrapar Participações S.A. (NYSE:UGP) is a Brazilian conglomerate primarily engaged in the distribution and retail of automotive fuels and related products. It operates through 5 main business segments, including Gas Distribution (Ultragaz), Fuel Distribution (Ipiranga), Chemicals (Oxiteno), Storage (Ultracargo), and Drugstores (Extrafarma).
While we acknowledge the potential of UGP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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