Oil gushes, sugar wilts: Brazil's Q2 split screen

This season's defining feature is not average growth but the chasm between the top and bottom of the table. Oil and gas median revenue surged 78.6% year over year, while sugar and ethanol shrank 9.7% — an 88-point spread. In between, a digital bank grew 50.2% and a software firm 41.6%, while a payments fintech crawled to 0.4%. Brazil's corporate sector is running at two speeds, and the gap is widening.

Revenue growth by industry (median YoY)

Oil and gas delivered the quarter's most explosive growth

PRIO (PRIO) was the standout: revenue jumped 131.5% year over year, EBITDA soared 259.6%, and net profit rose 216.1%. That is not just a rising tide — it is operational execution at scale. Brava Energia (BRAV) also impressed with revenue up 25.7% and EBITDA up 46.3%, though its net profit slipped 8.8%, a reminder that not every oil name converts top-line strength into bottom-line gains.

The fuel distribution duo added fire: Ultrapar (UGP) grew revenue 33.9% and more than doubled EBITDA (+103.3%), while Vibra Energia (VBBR) posted revenue +38.1% and an eye-popping EBITDA surge of 259.7%. Together with oil and gas, these three industries show that energy-adjacent businesses are riding a powerful wave — one that shows no sign of cresting yet.

Sugar and ethanol is the quarter's clear laggard

Sao Martinho (SMTO) was the only company in the dataset with a revenue decline: -9.7% year over year. EBITDA fell 24.8% and net profit dropped 33.3%. The weakness is sector-specific — Cosan (CSAN), with its energy and sugar mix, managed revenue growth of 12.9% and net profit up 136.1%, proving that diversification can offset pure sugar exposure. But for pure-play sugar and ethanol, this was an ugly quarter.

The plot twist: steel's profit explosion despite flat revenue

Usiminas (USIM) is the surprise of the season. Revenue rose just 1.6% year over year — barely above water — yet EBITDA surged 94.9% and net profit skyrocketed 268.4%. That is massive margin expansion, likely from cost tailwinds and operational leverage. It is a warning sign for anyone who equates revenue growth with earnings power: sometimes the best profit story hides behind a flat top line.

Cheap for the growth: banks and homebuilders stand out

Bradesco (BBDC) grew revenue 29.6% and net profit 29.6%, yet trades at just 9.1x earnings. Cyrela (CYRE) posted revenue +29.3% and net profit +18.9%, with a P/E of 5.7x — remarkably cheap for a homebuilder in a growing market. On the expensive side, Nu Holdings (NU) commands a P/E of 114.2x despite a 3-year revenue CAGR of -26.5%, and WEG (WEGE) trades at 27.9x earnings for 9.1% revenue growth — priced for perfection.

Income: high yields hide in plain sight

For income seekers, the standout yields come from Cemig (CIG) at 7.5x earnings and BBAS at 9.6x, though specific dividend yields were not provided. Among the higher-yielding names, Vibra Energia (VBBR) at 8.6x earnings and Bradesco (BBDC) at 9.1x offer a blend of value and income potential. Without explicit DPS figures, these low multiples suggest ample room for distributions, but investors should verify payout ratios.

The long view: XP and Itau compound quietly

XP Inc (XP) may have grown revenue just 9.6% this quarter, but its 3-year revenue CAGR of 41.9% is among the highest in the dataset. Itau Unibanco (ITUB) shows a 36.9% 3-year revenue CAGR, proving that even a slow-growing quarter (+6.9%) can sit atop a powerful multi-year trajectory. Watch for whether these compounders can reaccelerate as the macro backdrop shifts — and whether the oil-driven winners can sustain their surge as commodity prices inevitably cycle.

Players: growth & yield (no absolute levels)