Morning, and welcome to Intelbras' First Quarter 2026 Earnings Call. My name is Bruno Teixeira, Head of Investor Relations, and it's a pleasure to join you this morning. I'm joined by Henrique Fernandez, Chief Executive Officer. This conference is being recorded and will be available at the company's investor relations website, where you can already find the slide deck. You can download it now to follow the presentation, and after the call, you will also be able to find the video playback. Choose the language by clicking the icon Interpretation below. During the Q&A session, please use the Q&A feature that you can find at the bottom of your Zoom screen. Please enter your name, organization, and the language in which you're asking your question. We're going to take your questions in the order that they are submitted.
When we call your name, you'll receive a pop-up message to enable your microphone. The information contained in the presentation and any statements that may be made during the conference call about the business perspectives, projections, as well as operating and financial targets for Intelbras, are based on the beliefs and assumptions of the company's management and on currently available information. Forward-looking statements do not guarantee performance. They involve risks, uncertainties, and assumptions as they refer to future events, and therefore depends on circumstances that may or may not occur. Investors should understand that general economic and market conditions, as well as other operating factors, may affect the future performance of Intelbras and lead to results that differ materially from those expressed in such forward-looking statements. Okay, now I would like to start the presentation, and then I'll turn it over to Henrique.
Here we have the main financial highlights, starting with our net revenue. In the year-on-year comparison, we grew by 20% because the comparative base was lower. In the quarter-on-quarter comparison, we have a drop that has to do with seasonality, and this confirms what we have been telling the market over the past months. Here we have some details about our EBITDA, slightly north of BRL 156 million, with a strong year-on-year growth because of our operating leverage and a decrease quarter-on-quarter, indicating that the operations were healthy and in line with our past statements about this matter. Net income, we can see a significant growth year-on-year and also quarter-on-quarter. 11% growth quarter-on-quarter.
About this, we need to remember that we had to recognize the deferred income tax in the fourth quarter last year, reducing the results of the fourth quarter. The same effect happened here, but the other way around, and it helped the result this quarter. If we look at the results before income tax, we're going to see that even with a lower revenue in the first quarter, we can see that the result is very similar to the fourth quarter, excluding income tax. It is a confirmation that the main indicators are indeed showing that the operations are treading a very interesting path. As a result, we can see the evolution of the ROIC 17.7%. It is very important, and we have told you that this is an expectation not only for now but for the rest of the year. Now, the margins.
Our gross margin is pretty stable, the same as for Q 2025. Our EBITDA margin is also stable, 20 basis points above the last quarter with a lower revenue, though. It is a result of the positive work that has been done. Net margin also reflecting that effect of the deferred income tax, recognizing the time differences, and the net margin was slightly above what we are used to seeing. Now, when it comes to revenue, before talking about the first quarter, I wanted to show you the structural evolution. If we look at the portfolio that was part of our revenue way back in 2021 when we had slightly over BRL 3 billion in revenue and the portfolio in 2025, you can see that the portfolio and the revenue composition makes a lot of sense considering the comparison base. In 2026, it's the same logic.
The same portfolio will repeat itself, the same level of revenue. If we look at our CAGR from 2021 - 2026, at the end of 2026, it will be clear to us how well-positioned we are. Now, EBITDA. We needed to make a few adjustments. EBITDA should follow the same path. We are going to see an interesting evolution happening in 2026. More important than commenting the evolution in 2026 in the first quarter, comparing it against 1Q 2025, which was a lower base. Now, let's take a look at our EBITDA margin going from slightly short of 9% to slightly north of 14%. We had a recovery in our revenue with a strong performance in net profit, a very strong control over expenses.
If we look at the actual expenses in 2025, that's important because we had BRL 5 million less in expenses. If you wanted to simulate the numbers without that evolution, you would see that the margin would have been very relevant as well. We had a margin of 14.1% with an EBITDA of BRL 56 million. It is a result that reflects the discipline that we have kept and a very efficient control over expenses. Let's talk about the quality of our revenue and gross profit. We can see how stable the margin has been over the past three quarters, which is the result of the mix of the revenue. It is a margin profile that is very consistent with what we believe our operation should be and how it is currently.
Last year, in the beginning of this year, we saw a cost pressure going on. Commodity prices went through inflation, and that was accentuated by memories. Now we have the war putting pressure on oil prices, making freight costs go up. We're keeping close attention to everything that's going on when it comes to the costs and the sources of raw materials. When we bring that to Brazil and we look an appreciated BRL, that effect is very clear. If necessary, we can make price adjustments just like we have been doing over the course of our history. Of course, we have to keep an eye out for the movements in the market, doing what we have to do, including necessary adjustments. We're still in a scenario where Adjusted Present Value still has an impact on the operating results.
We had 90 basis points of negative impact on top of a very important margin, we reached 100 basis points this quarter. Interest rates are still high. We are starting to finance our inventory a little bit better now. From 31st of March to 3 1st of December, the inventory level was pretty much the same, the Selic rate just started going down. We are going to keep close attention to everything that is going on that side and sharing with the market the effects that we observe. Now, security accounted for 62% of our revenue this quarter with a very strong growth year-over-year and a seasonal drop according to our expectations. The market is behaving pretty much the way it behaved in the third and fourth quarters, 2025.
We saw a good proportion between sell-in and sell-out according to normal levels, we can see a stable gross margin as well. Costs going up affects all three segments. I should highlight that if we need to adjust prices, we will, as we have always done. We believe that if that's the case for Intelbras, it's the case for the whole market. Commodities and the dollar affect everybody. It is natural for the market to accommodate, and we can adjust prices as needed. ICT accounted for 23% of our revenue with a significant year-on-year growth. A seasonal drop that was slightly lower than the drop in security. It is a reflection of what's going on in the structured cabling business. Which developed well in the quarter-on-quarter and year-on-year comparisons.
It is a segment that is being driven and boosted by the anti-dumping measures. The local industry is growing, we are growing as well. On the other hand, we have a revenue mix that is less exposed to GPON, as we said in the second half of last year. I should highlight also that one of the very important ICT strategies that has been working out is selling solutions, especially CCTV, which helps us in the enterprise network sales. We can see a stronger connection between distributors that sell corporate enterprise networks and CCTV. That's been working very well and contributing a lot to the ICT business. Energy with 15% of our revenue with a similar year-over-year and quarter-over-quarter drop. It has been evolving according to plan.
We've been sharing with you that the solar growth is driven especially by panels pursuing profitability because we don't think it makes sense to pursue market share. It makes more sense to provide good services to the end customers and the distributors, so that everybody can get their healthy results. This is a revenue base that we believe to be continuous, we will continue to work on it. The other energy businesses have been evolving very well. For Q 2025, we had already seen an evolution with UPS and EV chargers. The same thing happened in the first quarter of this year. We can see the effect on the gross margin with QoQ growth, which is a result of the revenue mix and a business that is more exposed to solar energy, which naturally has lower gross margins. Now, cash evolution.
We left in December 31st with BRL 1 billion, and in 31st of March , it went up to BRL 1.3 billion, with strong operating cash generation. There's seasonality here, right? We pay for what we did last year, our peak season, our most active period, commercially speaking. There's some accommodation that has to be done here between inventory and accounts payable. Still, our cash generation was strong. We also had BRL 60 million in net balance related to BNDES and FINEP financing, paying interest as planned. We can see a strong cash generation that is very much in line with what we have been doing in our business. Now CapEx. In the first quarter, CapEx was low, even lower than our track record for this period, which is normal.
In the beginning of the year, we always pay attention to what is going on and making decisions about the investments. We had the opportunity in the beginning of the second quarter to complete a project that we have been working on for quite some time, the expansion in Manaus, in the north of Brazil. We acquired a plot of land of 160,000 sqm , and it is going to be completed over the course of the first month. We are going to see that CapEx in our financial statements in the course of the next quarters. Now, before I turn it over to Henrique, I'd just like to mention that the global scenario requires a lot of attention from us.
We believe that the evolution is going to come not from the global scenario, but our hard work and our position in the market. We can see that happening. In March, we announced a new commercial strategy, structure rather, with our distribution channels and internal teams focusing on the journey. It is a team, a structure that is very much prepared to support us in our growth trajectory. That growth is always going to come from discipline and a very consistent pace in our execution. We believe that the results in terms of profitability and results are in line with our expectations. Now, I'd like to turn it over to Henrique.
Thank you, Bruno, and congratulations on the presentation. Good morning, everyone, and thank you once again for joining us. As I've been saying over the past quarters, we are building something brick- by- brick with a very down-to-earth approach and sharp focus on our ROIC discipline in the operations and in the market. Bruno has already presented the numbers and the result of the quarter, and it really confirms our actions are indeed building the path we chose with changes in the structure, improvements in operations and capital allocation. The result we achieved was extremely important, of course, but the journey has just begun. We will continue with a lot of discipline, hard work, because there are still many opportunities ahead. At the same time, we are being very selective in relation to new opportunities. We remain optimistic, but as always, with our feet firm on the ground.
The first quarter started according to our plan and in line with what we communicated at the closing of 2025, and even, a little better, in fact. The seasonality at the beginning of the year occurred as planned, and the operation proceeded within expectations with very consistent performance compared to the second half of last year, which is a better comparative base. Bruno already mentioned it, but it's worth recalling that in the year-on-year comparison, 1Q 2026 against 1Q 2025, there is a relevant base effect because in the first quarter of last year, there was a strong impact from the ERP migration. Don't forget that when you're running your analysis. Our main message is that the company is more efficient with discipline and execution, and that starts to appear more clearly on the main indicators.
Our ROIC, for example, has improved to a higher level compared to recent years, and it continues to serve as a reference for priority setting and capital decisions. The work done in 2025 was structural. We changed processes, management routines and portfolio priorities to reduce complexity and increase efficiency, always with discipline in capital allocation. This does not deliver results immediately. You reap the results as changes start to settle and become routine within the teams, especially out there in the field. There are three pieces that I consider to be key at this stage. The first one is focus on the customer journey and execution with the channel. In March 2026, we announced a new format of commercial service for distributors.
The idea is simple: increasing efficiency and proximity and to organize execution by purchase journeys from residential, small and medium-sized businesses, all the way to large enterprises and government projects. To serve each of them, we have dedicated specialized teams with very clear responsibilities. We consider the channel as an extension of the factory. For them as well as for us, predictability in the numbers and excellent consistent execution are extremely important. Our expectation is that this change will improve efficiency jointly with the channel and contribute gradually to the resumption of growth. Now on to the second piece, working capital and cash. We continue to see opportunities to improve inventory efficiency and financing, and this is a direct lever for returns. Our goal, as I've said many times, our goal is not to tighten inventory and suffer stockouts.
It is to have the right inventory financed in the right way with a more predictable operation. For this, we need to be increasingly connected to the field, anticipating needs and adjusting our course of action according to changes in the market, whether due to the economy, geo- geopolitical scenario, consumption habits or competitors if they make changes. Now I'll already anticipate a point that usually comes up in the Q&A. In the first quarter, there is seasonality. You pay for larger purchases made in the second half and ship less than in the beginning of the year. This affects working capital, and it is expected and planned by us. What matters here is the efficiency trajectory throughout the year. Finally, the third piece, industrial planning in Manaus. The Manaus plant will soon reach the capacity limit projected in the medium-term plans.
As part of the long-term industrial planning, we acquired a plot of land in the region. It will allow us to increase production volume, better integrate the operation, and make our industrial structure more flexible with important benefits from the free trade zone. You may be wondering, why invest in a new plant in such a challenging market? Now, guys, currently we are already operating in Manaus with our own plant, which is the current factory and leased spaces for storage. With a new plant, we will eliminate leases and transfer the factory, reducing costs and increasing productivity in addition to supporting growth. We can't wait to reach the limit and only then start thinking about acquiring land and building a new factory. We need to anticipate things. That's why it's long-term. There's an important point for you to better understand the movement and the rationale here.
The change is also due to the change in technology, especially in cameras, because we need more space to produce compared to the previous technology. It's more material, more space, more people. We need to automate some steps and change the format of the production lines in order to gain productivity. For that, we need space for a new, more productive layout. That's how we work every single day when we have a factory. We need to change the way we do it, rethink things to gain more and more efficiency in our processes. This decision was not made overnight. It was a planned, thought through decision.
Until we made this investment decision and consensus, of course, with the Board of Directors, we considered several possibilities, including leases, outsourcing part of the production, the available land, cost of capital, and also where to obtain funding at a more attractive rate. This new area reduces cost and increases productivity in addition to supporting growth. Now speaking about the business and our segment. In security, the growth avenues are the very same that we discussed in 2025, and we continue executing with closer proximity to the channel. That's very important. Closer proximity to the channel. For 2026, the macro environment should still have an impact. Structurally, the market has not changed. The economy continues to make it harder for companies to invest, and consequently, we need larger projects. Our priority is consistency. This is not new for us.
Usually, the less structured companies struggle more in moments like this, and we usually emerge out of them stronger. Our priority is still consistency, execution, and capturing efficiency. Now let's talk about gross margin. It depends on mix, price, and cost. Costs at the source are on an upward trajectory due to commodities and oil. Exchange rates help, but they do not change the structural trend. For this reason, price adjustments continue to be selective, and they are necessary. In the quarter, the price lists remained stable with selective changes, especially in memory and hard drives. In ICT, the strategy is balanced between revenue and ROIC, with adjustments already made mainly in GPON. The format of the partnership with FiberHome has changed since January, and the evolution in the coming quarters will bring more elements for future decisions.
At the same time, in optical cables, the market is heated with the anti-dumping measures and the Tubarão plant has been operating as planned. Now, solar energy. The business was repositioned as we have been communicating, as Bruno said. The priority is profitability and not market share in the solar business. This changes the revenue level, but improves the quality of revenue and margin. In the other energy businesses, there's still a lot of room for growth, and we continue investing both in UPS systems, EV chargers, batteries, and smart energy used particularly in the smart home concept. To conclude, we are seeing a positive combination of signals in the company with the operation normalized and in constant evolution, greater financial discipline, execution that is closer to the channel, improving working capital and evolving ROIC.
The first quarter was good, there is still a lot of work ahead. The global scenario continues to bring uncertainties. Commodities are putting pressure on costs and the interest rate dynamic going up by elevator and coming down by stairs. It seems that it will take longer to come down than we would like. Our direction will continue to combine prudence and efficiency in execution with an unwavering focus on the customer, strongly supported by innovation and maturity in capital allocation. Thank you very much. Now we are available to take your questions.
Thank you, Henrique. We can see that Victoria from JP Morgan submitted a question in writing. I'm going to read it for you so that we can answer. There are two questions, actually. The first one is about the review of the ICT portfolio. How is it going?
How much progress we've made, and when do we plan to finish it? Also, we should already see the current ICT revenue levels as a parameter for the next three quarters. Is that right? Considering that the impact has been positive from the anti-dumping measures. The second question is about the working capital in 2026. Which factors should contribute to the reduction? Which working capital should be used as a reference as what the management aspires to today? Well, about the review of the ICT portfolio, indeed, the focus is on what brings a good ROIC in the company. The analysis of all businesses use that as an assumption, as a premise, and you can see that on our numbers. We have already simplified the portfolio, not only just for ICT, but the company as a whole.
It's like trimming your nails. You have to do it constantly because you remove things and new things come up. You need a constant habit of analyzing and honing your portfolio. With a very genuine concern, at the same time as you do it, you cannot limit and curtail innovation in the company. It is constant evolution. I can't say that we are never going to talk about this after a certain date. No, it's part of our day-to-day business and operations. Of course, with clear, clearer criteria when it comes to capital allocation and the return that we expect. About working capital, Victoria, what we can see is that opportunities come from inventory management.
For example, if you look at accounts payable, we can see some stability slightly up or down here and there, but it hasn't changed that much over the past quarters, and that's where we expect it to be. The opportunities come from a more efficient inventory that is consequently better financed. Those are metrics that you should pay attention to. The relationship between accounts payable and inventory. If you divide one by the other, you can see the suppliers, how much the suppliers are financing your inventory. We finish the year at 71, and we started the year close to 70, 69, I think. There's still room to evolve that ratio between accounts payable and inventory. There's a second point here for you to monitor this matter. The need of working capital divided by the revenue level.
That is evolving as an indicator, but there is still room for improvement in that ratio. Those two indicators are very important for you to monitor, and they are going to paint a clearer picture of how we look at working capital. Victoria also talked about anti-dumping measures. Well, in the cabling business, Victoria, the market is heated, especially with aids to the national industry, with protections in the form of anti-dumping measures. Our Tubarão plant is working extremely efficiently, just like we planned. This business is becoming more relevant in our ICT operations as a whole, and it should continue to be so during the whole year of 2026 and for as long as the anti-dumping measures continue. Now, I'd like to turn it over to Leonardo from Itaú BBA. Please go ahead.
Good morning, Bruno and Henrique. Thank you for taking my question. Congratulations on the results. My first question is about security. If you can give us an update about when you believe this BU will start speeding up a little bit more, and also the market, the local market and price adjustments. The second question is about your EBITDA margins. It was a positive surprise. Can we use it as a reference going forward? If not, what should be the EBITDA margin that we can expect for the coming quarters?
Leonardo, let's talk about the competition in the security business. It is just as it used to be. The competitors suffer from the same evil that we do. Raw materials, especially when it comes to memories, had a significant price increase due to the investments being made in data centers. The competition is the same as it was.
The positioning in the market has not changed. When we look at the security business from a growth perspective, our market share position is very significant. There are smaller businesses in the security business where we can create new markets, and that is what we have been working on. For example, when it comes to corporate access control, for example, face recognition. It's a huge avenue. There are very few buildings in Brazil that use that technology. It has to be promoted. We need to create that market, that demand. CCTV, IP and enterprise access control and fire alarms, fire detection systems, bring us good perspectives. We have more and more competitive products in our portfolio. We need to promote those things more and more in the market and grow in those businesses. We see opportunities out there.
It's really going to depend on our execution capacity and seizing those opportunities. There was another question about EBITDA, right? Leonardo, I believe it would be prudent for us to consider that this year we are going to operate within the normal range for our company. We had a very significant expense control this year. If we had the same expense level as last year, the margins would have been lower, if you want to model that. The perspective for this year is really about bringing the efficiency that we have been building over time and to reflect that on our results. As a consequence, our EBITDA margin would be slightly above our average, but I wouldn't say that we are going to see an acceleration in our EBITDA margin over 2026. It would be optimistic for us to say that.
That's why we try to bring you some perspective on cost and the need for attention due to the market and the war and an increase in costs. All of that can factor in the results. We are here to work on our ROIC with more profitability, which is reflected on our EBITDA margin and also a more rational capital allocation. That's the context we are operating in. I wouldn't project a growing margin going forward. We don't believe that the margin for this year will be much higher than the average for Intelbras over the past years.
Okay, that's very clear. Thank you. If you allow me to ask a follow-up question. You have been very vocal about AI, embedded AI on security hardware. If you can share some perspectives about this and how customers have been behaving, if they are adhering to these new solutions that have embedded AI.
AI is very strong when it comes to providing solutions for everyday operations in security systems. We have been working with AI for a long time, but recently it has been growing because the quality improved a great deal. It takes some time for AI to start learning, but once it does, it really understands patterns, and it gives you alerts and warnings without the constant need of having an operator there looking at the image. It helps you in your accuracy in your operations.
What we tell the market is that we need to boost the use of AI because it reduces operating costs and adds more security to the everyday routine and the security of any business. We, for sure, will continue investing more and more in that and bringing more and more innovation. The big and small size companies use it, but also we want to cater to residential users in our B2C business. Of course, when it comes to enterprise solutions, we need more connections, more integrations, so that everything works correctly and efficiently. Having simpler AI, just like we have access to ChatGPT and the like, we also want to provide those solutions to those customers. Just recently, we launched in our iGo cameras that we sell in retail channels and the distribution channel as well.
We just launched a feature where you receive an SMS or a WhatsApp message describing what's going on in the image captured by the camera. It gives you a warning and alert without you having to be there looking at it. You needed to have the camera open, the image open, and then you would receive an alert. Now you receive a message saying that there's a person standing right in front of your home for 10 minutes, or that someone jumped over your gate or your wall. The technology is taking strides on this field, and it is allowing us to address pain points and issues that people didn't even know they had them because they were so used to the previous technology. It all depends on how that integration happens between the solution and the user.
Okay. Thank you.
Thank you, Leonardo. Have a good day. I'd like to take to turn the conference over to César Davanço from Santander, who's going to ask the next question.
Hello, good morning. Congratulations on the results. I have two questions. Specifically, when it comes to security, if we compare this quarter's performance against the average of last year. Well, last year there was the ERP migration, and if we exclude that, we can see that there was an improvement. My question here is, can we already see a growing trend in security in comparison with the fourth quarter of last year? If we look at the average of the first quarter, we can see that security is growing by 5% year-over-year. Does that make sense? Is that going to be sustained?
My second question is about selling expenses. It's been a lot better than expected. Should we expect a higher EBITDA margin? What is the expectation for selling expenses going forward? Was seasonality different from what it usually is this quarter? What can we expect from the coming quarters?
Henrique, I need to ask your help here. If I forget any numbers, please help me out. I think you're comparing the first quarter 2026 against the first quarter 2025, and also 1Q 2026 against 4Q 2025. Well, regardless of the format of your calculation, the numbers are pretty much the same. They're very similar. They are above inflation and very much in line with the deliveries that we had last year. They are a fair description of what we expect for 2026.
When I look at the growth potential for revenue in security, in 2026, we should grow similarly to what we grew last year at around five or maybe slightly more than that. It will be more or less the numbers that you mentioned in your question. The market in general is also similar than it was. It is important to have that clarity. The challenges are the same as we saw last year towards the end of the year. It is still too early to tell if security is really improving so that we can really take off from the level that we had in 2025. Indeed, security is going to grow more than it did in 2025.
Just like we are not celebrating the 30% increase in our revenue year-on-year, you know, we shouldn't have such a bad perspective if we don't grow so much or if there is a drop. Your analysis is correct. We should use the half-year comparison base, first half 2026 compared against first half 2025. That should paint a picture and give you a snapshot that is closer to what you should expect for the rest of the half of the year, the first half of the year. By doing so, I believe you can exclude some one-off situations and seasonality effects. Okay. Now, when it comes to efficiency, we pursue operating efficiencies on the selling expense side and also G&A.
Our plan going forward for expenses is to keep it stable or slightly above 2025. That's our plan. Of course, we always pursue efficiency improvement across the entire company when it comes to managing those expenses.
Okay. Thank you.
Thank you for your question. One last question from Lucas from Safra. Please go ahead. Hello, Lucas.
Hello. Thank you for taking my question. You said that there was an increase in memory prices because of AI. What can we expect in terms of impact? Is it going to be possible to pass on the costs 100% to the consumers? What would the percentage be? About the reduction in lease costs because of the new factory in Manaus. Just so I have a ballpark number. That's it on my side. Thank you for taking my questions and congratulations on the results.
Well, Lucas, about the price of memory, the increase was very sharp, in some cases 300%, and it doesn't affect us exclusively. It affects the entire market. There was shortage in some cases, but we have excellent conditions with our partner. We continue to deliver the materials. Indeed, it was an impact that affected us, but the entire market as well. We are passing the costs on because as I said, it's not exclusive to us. The competitors are doing the same. We are going to pass basically 100% of the cost increase. The exchange rate helped us a little bit. It offset part of that effect. Not everything, but at least a little bit.
Okay.
Well, about memories, if I may add, the price increases are precisely for the purpose of containing demand. Memories are part of the products, but they are not the main item in the products. It's important to have clarity on that. They are a component in electronics in general. Some products are more exposed, and we will have to consider options, for example, cloud recording, encouraging cloud recording. Those are positive movements as well, if you consider the entire business. Now, about lease costs in Manaus. We have 2 spaces that we rent. Once we migrate, once we transfer to the new plant, we'll no longer need to lease those places. That is going to be reflected on our results over the course of the 18 months of construction. I think it's premature to go into the details, but we will try to eliminate that cost.
We will also try to pursue efficiency because we will operate within the same industrial plant. Over the next 18 months, the operation will continue running according to the current format. Only after the plant is finished, we will be able to see those effects more clearly. Then we will be able to give you more details. I think it would be too early to say more about that now.
Okay, that's very clear.
I don't see any more questions, so I'll turn it over to Henrique Fernandez for his closing remarks. Go ahead.
Well, what we have been saying for a year now is that we are paying close attention to our ROIC and efficiency, so that we can grow and have a leaner company that is better connected to the market and the customers. It is happening in this evolution transformation process.
We can see that in the results, the ROIC has improved. We're talking about efficiency, reducing complexity, and you can see that the expenses went down. We have been talking about the revenue and improving the quality of our revenue in order to grow, and we can also see the result on our gross profit. We are treading the right path with a lot of discipline and a lot of energy as well. We're coming from a movement that is not easy to do in the company, but all leaders were so engaged. We have been able to put everybody on board with us, and now we have a company that is much more engaged, a company that really wants to win and grow with a very strong connection where things really matter, which is out in the field.
You can go there and talk to the distribution staff and our customers, you will feel that energy and that willingness to make things happen. We are finishing the 1st quarter of 2026 with our foot on the ground, knowing that there's a lot to be done still. We know that. We have been able to achieve so much in this transformation with respect to people and fostering this pulsating energy in our company and our customers as well. Thank you very much, and see you again in our 2Q 2026 earnings call.
Thank you, everybody. This concludes our earnings call for today. Have a good one.