Should You Invest in Ultrapar Participacoes (UGP), Here's What You Need to Know

Ultrapar Participações S.A. (NYSE:UGP) is one of the 11 Hot Penny Stocks to Buy Right Now. On May 7, the company announced its results for the fiscal first quarter of 2025. The company reported facing some market challenges during the quarter.

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.

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).

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Disclosure: None. This article is originally published at Insider Monkey.