One of Brazil’s biggest bus-body makers had a much weaker spring and summer than a year ago. Marcopolo, based in Caxias do Sul in southern Brazil, said on Tuesday 3 November 2026 that its net profit for July to September fell 43.4% to R$186.5 million (about US$34 million), against R$329.6 million (about US$60 million) a year earlier.
For US readers, Marcopolo is a clear read on how healthy Brazil’s factories and public transport budgets are. Its shares trade on B3, the São Paulo stock exchange, as POMO3 and POMO4, two share classes.
What Happened
Marcopolo published its third-quarter results on Tuesday 3 November 2026. Net revenue fell 8.5% to R$2.293 billion (about US$420 million), and EBITDA, which is operating profit before interest, tax and depreciation, fell 34.7% to R$274.1 million (about US$50 million).
The slide follows a weaker second quarter, when net profit was R$271.2 million (about US$50 million), down 15.5%. The third quarter therefore marks a second, deeper step down.
The gross margin, the share of each sale left after production costs, dropped to 20.3% from 26.7% a year earlier. The company built 3,085 buses and bus bodies worldwide, 25.2% fewer than the 4,127 of the third quarter of 2025.
Where the Weakness Came From
Output in Brazil fell 16.7%, but output at the company’s overseas plants fell 59.3%. Revenue of those overseas operations dropped 21.4% to R$703.2 million (about US$129 million).
Exports from Brazil moved the other way, rising 3% to R$377.8 million (about US$69 million). A federal school-bus programme called Caminho da Escola, which supplies buses to municipalities and states, received only 2 vehicles from the company in the quarter, against 631 a year earlier.
A Marcopolo-bodied double-decker coach run by Brazilian operator Spazzini. Photo: RL GNZLZ, CC BY-SA 2.0, via Wikimedia Commons.Costs and Restructuring
Marcopolo booked R$19.9 million (about US$3.6 million) of one-off restructuring costs, of which R$16.7 million fell in Brazil and R$3.2 million in Mexico. Gross profit, which is sales minus production costs, fell 30.5% to R$464.8 million (about US$85 million).
The company’s results show that the weakness came from lower volumes and thinner margins together. Fewer buses were built, and each one left less profit.
What the Company Expects
In its outlook, Marcopolo says it does not expect a consistent recovery in sales and production by the end of 2026 or in early 2027. The company has given no date for a rebound.
Brazilian bus bodies are ordered by city transit operators, long-distance coach firms and public programmes. A pause in any of the three shows up quickly at the factory.
What It Means for You
If you own Brazilian stocks through a US fund, this report is a reminder that exporters and transport suppliers are under pressure from a slower home market. Weak bus orders are one more sign of the factory slowdown described in our report on Brazil’s manufacturing index.
Buses already in service keep running, so travellers will notice nothing soon. The company has not said what the slowdown means for jobs at its plants.
What Is Not Known
It is not known when orders will return, or which overseas markets are behind the fall of nearly 60% in output at its foreign plants. The company has not given a date for a recovery.
It is also unclear whether the federal school-bus programme will order more vehicles soon. We converted reais at 5.46 per US dollar, the rate of 5 November 2026 from RT, a financial data provider, so dollar values move with the exchange rate.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What Does Marcopolo Make?
Marcopolo, based in Caxias do Sul, builds bus and coach bodies, including city, intercity and electric models. It sells in Brazil and abroad.
How Much Did Marcopolo Earn in the Third Quarter of 2026?
Net profit was R$186.5 million (about US$34 million), down 43.4% from a year earlier. Net revenue was R$2.293 billion (about US$420 million).
Why Did Marcopolo’s Profit Fall?
Fewer buses were built, down 25.2% worldwide, and output at overseas plants fell 59.3%. Gross margin also shrank to 20.3% from 26.7%.
When Does Marcopolo Expect Sales to Recover?
The company says it does not expect a consistent recovery by the end of 2026 or early 2027. It has given no date for a rebound.
Sources: Marcopolo S.A., third-quarter 2026 earnings release and investor relations, 3 November 2026; Brazil’s securities regulator (CVM), company filings, 3 November 2026; RT financial data provider, USD/BRL rate, 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI ·