Vibra Energia (VBBR3.SA): 3Q26 Results: Recurring margins in line, with good FCF supporting further deleveraging

Citi keeps a Buy rating and R$43.00 target price on Vibra Energia, implying 47.0% expected share price return and 6.5% dividend yield for a 53.5% total return. 3Q26 net revenues reached R$56.9bn (+17% YoY, -1% QoQ), in line with consensus, while recurring EBITDA on Fuel Distribution came in at R$3,660mn (+148% YoY, -11% QoQ), a R$381/m3 margin versus Citi's R$380/m3 estimate and 4% above consensus, on volumes of 9.6mn m3. Adj. EBITDA of R$4,288mn beat Citi by 12% and consensus by 24%, helped by R$444mn of non-recurring items, mainly tax recoveries. Retail recurring EBITDA was R$2,506mn at a R$412/m3 margin, with QoQ compression reflecting fiercer competition in July-August on higher fuel imports; the network ended at 7,686 stations. B2B volumes were 3.53mn m3 with recurring adj. EBITDA of R$1,301mn and a R$369/m3 margin. OCF reached R$2.7bn despite R$1.0bn of working capital consumption, net debt fell to R$14.4bn and leverage to 1.0x from 1.3x. Citi sees the company using low domestic