04. Ultrapar Participações S.A. (NYSE:UGP)
Latest TTM Net Income: $402.61 Million
Closing price on June 26: $3.09
Ultrapar Participações S.A. (NYSE:UGP) is proving to be a solid pick among penny stocks in 2025, backed by strong fundamentals and strategic shifts in its operations. With a trailing twelve month net income of $402.61 million and a modest stock price of $3.09 as of June 26, UGP stands out as a low priced stock with strong earnings power.
Despite a challenging macro environment and sector wide irregularities in Brazil’s fuel distribution market, Ultrapar Participações S.A. (NYSE:UGP) delivered recurring EBITDA of BRL1.183 billion in Q1 2025. Net income for the quarter came in at BRL502 million, showcasing its ability to stay profitable even amid volatility. The company’s performance was partially affected by a BRL139 million loss from its logistics subsidiary Hidrovias, but that didn’t stop it from maintaining healthy margins and cash flows.
One of the biggest bullish drivers is Ultrapar Participações S.A. (NYSE:UGP) strategic focus on streamlining operations. The sale of its cabotage operations for BRL750 million, alongside a BRL1.2 billion capital raise, helped improve its leverage profile and placed the company for future growth. Ultrapar Participações S.A. (NYSE:UGP) now holds a majority stake in Hidrovias, signaling confidence in its long term value potential.
Operational highlights include a 12% same store sales increase at Ipiranga's convenience chain AmPm and a 6% YoY rise in Ipiranga’s EBITDA. Ultragaz, the LPG distribution arm, posted solid volumes, while Ultracargo continued delivering stable returns with improved spot sales and efficient cost control.
With its robust infrastructure footprint, consistent cash generation, and enhanced financial flexibility, Ultrapar Participações S.A. (NYSE:UGP) is executing well on its long term growth strategy. For investors looking for profitable penny stocks with scale, stability, and upside in a recovering Latin American energy market, Ultrapar Participações S.A. (NYSE:UGP) deserves a spot on the watchlist.