Ultrapar Participações S.A. (UGP): Business Model Canvas [Dec-2025 Updated]

You're digging into Ultrapar Participações S.A.'s engine room, trying to map out how this strategic holding company actually makes its money across Brazil's energy landscape. Honestly, it's not just one business; it's a tightly woven infrastructure play spanning fuel distribution via Ipiranga, massive LPG logistics with Ultragaz, and specialized bulk storage through Ultracargo. Considering they posted a hefty BRL 37.03 billion in Net Revenue just for Q3 2025, understanding the mechanics behind that scale-from their 5,812 service stations to their strategic low-carbon bets-is crucial for any serious analyst. Take a look below; this Business Model Canvas breaks down exactly where the value is created and where the capital is being deployed, like that BRL 756 million CapEx in Q3 2025.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Ultrapar Participações S.A. relies on to execute its strategy across its energy and logistics footprint as of late 2025. These aren't just vendor agreements; they are structural alliances that define capacity and market access. For instance, the group's Q3 2025 Adjusted EBITDA hit R$ 1.9 billion, which included R$ 185 million from extraordinary tax credits at Ipiranga, showing how these operations feed the top line.

The most significant recent moves involve infrastructure and new energy vectors. Here's the quick math on the major structural partnerships:

The partnership with Perfin Infra in Virtu GNL is a clear pivot toward low-carbon solutions, specifically LNG for road transport, targeting agribusiness routes in the Central-West and North regions. This move is part of a broader strategy, as Ultrapar also announced interim dividends for the 2025 fiscal year totaling R$ 1,087,307,868.00.

For the core distribution businesses, the partnerships look different but are just as vital. You need to see how Ultragaz keeps its supply chain robust and how Ipiranga keeps its retail network stocked.

• Independent retailers for Ultragaz bottled LPG distribution: This is the backbone of Ultragaz's market presence, relying on a vast network of dealers for last-mile delivery of bottled LPG across Brazil.
• Fuel suppliers and refineries for Ipiranga's product sourcing: Ipiranga Empresas secures a full range of fuels, including high-octane gasoline, and maintains relationships with approved equipment suppliers for its storage and automation infrastructure.

The Ipiranga segment saw a 4% increase in fuel volume sold in Q3 2025, even while facing a 34% drop in recurring adjusted EBITDA for that segment. That volume growth is directly tied to the reliability of those sourcing partnerships.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Key Activities

Fuel distribution and marketing across Brazil via Ipiranga

• Ended the first quarter of 2025 with a network of 5,847 service stations.
• In the third quarter of 2025, the network stood at 5,812 substations, after adding 70 new substations and closing 84 throughout the quarter.
• Reported a market share of 17% in gasoline, diesel, and ethanol as of July 2025.
• Ipiranga's EBITDA for the third quarter of 2025 totaled BRL 1.85 billion, which included the recognition of BRL 185 million in extraordinary tax credits.
• Recurring EBITDA for the third quarter of 2025 was BRL 892 million, a 5% decrease compared to the third quarter of 2024.
• The 2025 strategic investment plan allocated R$ 1.366 billion to Ipiranga.

Liquefied Petroleum Gas (LPG) distribution (Ultragaz)

• Historically holds 46 percent market share in the LPG distribution segment in Brazil.
• Provides gas to about 15 million households in the bottled LPG segment.
• Serves more than 90,000 customers in the bulk segment.
• LPG volume sold in the first quarter of 2025 was 1% higher year-over-year, driven by a 2% increase in bottled segment sales.
• The company is preparing for the federal government's 'Gas do Povo' social program, expected to deliver one 13kg cylinder/month to 20mn families by the end of 2025.
• Ultragaz's 2025 investment plan totaled R$ 480 million.

Operating specialized liquid bulk storage terminals (Ultracargo)

• Ultracargo's installed capacity remained at 1,067 million cubic meters as of the first quarter of 2025.
• Cubic meters sold increased by 4% year-over-year in the first quarter of 2025.
• Net revenue for the first quarter of 2025 was BRL 271 million, a 3% increase compared to the first quarter of 2024.
• Completed the expansion of the Santos terminal in October 2025, adding 34,000 cubic meters of storage capacity.
• The 2025 investment plan allocated R$ 673 million to Ultracargo.
• Planned expansion at the Itaqui (MA) terminal is set to add 83,000 m³ of storage capacity by 2026.

Strategic capital allocation and portfolio management

Ultrapar Participações S.A. approved an ambitious investment plan for 2025 totaling R$ 2.542 billion.

• Total company leverage was reduced to 1.7x by the third quarter of 2025.
• The company reported a net revenue of R$ 37.1 billion for the third quarter of 2025.
• Adjusted EBITDA for the third quarter of 2025 was R$ 1.9 billion.
• Interim dividends for the 2025 fiscal year totaling R$ 1,087,307,868.00 were approved in December 2025.

Developing low-carbon logistics solutions via Virtu GNL investment

• On October 24, 2025, Ultrapar signed an agreement to acquire a 37.5% stake in Virtu GNL Participações S.A.
• The total investment amount for the stake acquisition is R$ 102.5 million.
• The investment structure includes a R$ 30.0 million capital contribution through new shares, R$ 52.5 million allocated to the acquisition of convertible debentures, and R$ 17.5 million paid to current shareholders as secondary consideration.
• Virtu focuses on Liquefied Natural Gas (LNG) logistics, including operating refueling stations dedicated to LNG-powered trucks, targeting diesel substitution in road transportation.
• The resulting corporate structure establishes a control block shared by Ultrapar and Perfin Infra, holding 75% of the voting capital.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Key Resources

You're looking at the core assets Ultrapar Participações S.A. (UGP) relies on to run its energy and logistics businesses as of late 2025. These aren't just assets; they are the structural advantages underpinning their market positions.

The physical network for fuel distribution is massive. Ipiranga maintains an extensive service station network, reported at around 5,812 substations as of September 2025. This scale is a direct barrier to entry for competitors in the retail fuel market.

In logistics, Ultracargo's asset base is centered on storage. The company's liquid bulk storage capacity is substantial, with the average installed capacity reaching 1,097,000 cubic meters in the third quarter of 2025, reflecting recent expansions. This is a leading position in Brazil's independent bulk liquid storage sector.

Ultragaz's resource strength lies in its nationwide distribution reach. This infrastructure serves a vast customer base, delivering 1.7 million tons of LPG in 2024 across 23 Brazilian states.

Digital assets are increasingly critical. The loyalty program, Km de Vantagens, boasts over 38 million participants as of September 2025, feeding valuable customer data into the ecosystem. The payment platform, abastece aí, supports these transactions.

Financially, Ultrapar Participações S.A. maintains access to capital markets, evidenced by its investment grade ratings from Moody's and Standard & Poor's. The company concluded a BRL 1.2 billion capital increase in Q1 2025 and raised BRL 1.4 billion in debt at a cost equivalent to 101% of the CDI during that period. As of Q3 2025, the net debt stood at R$12 billion, with a leverage ratio of 1.7 times.

Here's a quick look at the scale of these key physical and digital resources:

• Ipiranga service station network size as of September 2025: 5,812 substations.
• Ultracargo total static storage capacity (Q3 2025 average): 1,097,000 cubic meters.
• Ultragaz 2024 annual LPG distribution volume: 1.7 million tons.
• Km de Vantagens loyalty program participants (as of September 2025): Over 38 million.
• Ultrapar Net Debt (as of Q3 2025): R$12 billion.

We can map the operational scale across the main subsidiaries in a table:

The financial capacity includes the recent capital raise of BRL 1.2 billion and debt financing of BRL 1.4 billion in Q1 2025. The company's credit standing is supported by investment grade ratings.

Finance: draft 13-week cash view by Friday.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Value Propositions

Integrated energy and logistics solutions across Brazil.

• The logistics infrastructure segment includes waterway transportation and port operations through Hidrovias, handling grains, minerals, and fertilizers.
• Ultrapar Participações S.A. operates across mobility, energy, and logistics infrastructure via Ipiranga, Ultragaz, Ultracargo, and Hidrovias.

Reliable, nationwide supply of fuel and LPG products.

• Ipiranga, the second largest fuel distributor in Brazil, maintained a network of 5,812 substations as of the end of the third quarter of 2025.
• The company distributes liquefied petroleum gas (LPG) to residential, commercial, and industrial consumers through Ultragaz.

Convenience retail and loyalty programs (AmPm, Km de Vantagens).

• The offering includes AmPm convenience stores associated with the Ipiranga service stations.
• Digital payments services combine the abastece aí app and the Km de Vantagens loyalty program.

Strategic investment in low-carbon energy transition (LNG).

• The company entered the compressed natural gas (CNG) distribution market through the acquisition of NEOgás.
• Ultragaz began providing renewable electricity for businesses and homes, as well as biomethane for corporate clients.

Specialized, high-capacity liquid bulk storage services.

• Ultracargo operates as the market leader in independent bulk-liquid storage terminals in Brazil.
• In 2022, Ultracargo's six terminals provided a static storage capacity of 955 thousand m³.
• Ultracargo reported an Adjusted EBITDA of BRL 134 million in the third quarter of 2025.

Here's a quick math look at some key Q3 2025 operational and financial metrics:

What this estimate hides is the segment-specific performance variation, like the strong EBITDA growth in Hidrovias offsetting the dip in Ipiranga's recurring EBITDA.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Customer Relationships

You're looking at how Ultrapar Participações S.A. (UGP) manages its interactions across its diverse customer base, from the individual filling up at a service station to the large industrial partner relying on bulk storage.

Automated and transactional for fuel and convenience store sales

For the high-volume, low-touch retail side, the relationship is primarily automated and transactional, centered around the Ipiranga network. As of the second quarter of 2025, the network included 5,826 service stations. The convenience store arm, AmPm, ended Q1 2025 with 1,447 locations, showing same-store sales growth of 12% in that quarter. In the third quarter of 2025, Ipiranga stations sold 6.17 million cubic meters of fuel. This segment relies on speed and efficiency at the point of sale.

Loyalty program engagement via Km de Vantagens and abastece aí app

UGP builds digital relationships through its integrated platform. The abastece aí app and the Km de Vantagens loyalty program are key to driving repeat business and gathering customer data. This digital ecosystem is designed to boost customer retention for Ipiranga.

Dedicated account management for large industrial/commercial LPG and bulk storage clients

The relationships with larger clients in the LPG and bulk storage segments are definitely more personalized. For Ultragaz, the bulk LPG segment serves various entities including industries and agribusiness. While 2025 specific customer counts for the bulk segment aren't fully reported, in 2020, Ultragaz served approximately 58 thousand customers in its bulk segment. For Ultracargo, which operates specialized liquid bulk storage, the relationship involves managing complex logistics for commercial partners. The average installed capacity in Q3 2025 was 1,097,000 cubic meters, a 3% year-over-year increase, indicating ongoing service provision to these large clients.

Here's a quick look at the scale of the logistics and storage relationships:

Long-term contracts for Ultracargo's specialized storage solutions

Ultracargo's business in specialized liquid bulk storage is underpinned by securing capacity for clients, often through longer-term arrangements, though specific contract lengths aren't public. The commitment to infrastructure expansion suggests confidence in these relationships. For instance, the company added 34,000 cubic meters to the Ultracargo Santos terminal, a tangible investment supporting client needs. The cubic meters sold by Ultracargo in Q3 2025 totaled 3,845,000 cubic meters, though this figure reflects lower demand related to fuel imports that quarter.

The relationship structure for Ultragaz's bulk distribution involves innovation in products and services for a variety of clients, from large businesses to condominiums, focusing on quick, safe, and cost-effective supply to stationary tanks. The company saw an 11% decrease in bulk LPG volume sold year-over-year in Q3 2025, reflecting competitive market dynamics.

• Focus on safety and innovation pervades all Ultracargo actions.
• Ultracargo terminals use 100% renewable energy certified since 2021.
• Ultragaz bulk distribution strategy targets large, medium, and small businesses.
• Ipiranga is actively working to capture volumes from the fight against informal practices.

Finance: draft 13-week cash view by Friday.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Channels

You're looking at how Ultrapar Participações S.A. (UGP) gets its products and services to customers across its diverse segments. It's a mix of physical presence, direct delivery, and digital tools. The channels are deeply embedded in the Brazilian energy and logistics landscape.

Ipiranga branded service stations and AmPm convenience stores

The Ipiranga brand is the primary consumer-facing channel for mobility fuels. This network is extensive, ensuring broad market coverage for gasoline and diesel sales. The convenience aspect is handled through the AmPm stores, which are also expanding their offerings, including a joint venture for Krispy Kreme operations in Brazil, as noted in early 2025 developments.

The scale of the Ipiranga network as of late 2025 is substantial:

The Ipiranga network sold 6.17 million cubic meters of fuel in the third quarter of 2025, with the Otto cycle (gasoline and ethanol) driving the 1% volume increase over the same period in 2024.

Ultragaz's direct bulk delivery and independent retailer network

Ultragaz utilizes a dual approach for Liquefied Petroleum Gas (LPG) distribution. Direct bulk delivery serves commercial and industrial clients, while an extensive network of independent retailers handles the bottled segment, which is essential for residential cooking.

The reach of Ultragaz as of late 2025 includes:

• Distributing 1.7 million tons of LPG annually.
• Supplying 11 million homes.
• Serving 57,000 business customers.

Looking ahead, the new government program, "Gás para o Povo," is projected to expand coverage to up to 15 million families by 2027, which could translate to an additional 170,000 tons of annual bottled LPG sales for Ultragaz, representing about a 16% growth in that segment.

Ultracargo's port and rail-connected storage terminals

Ultracargo acts as a critical logistics channel, primarily for liquid bulk products like fuels, biofuels, chemicals, and vegetable oils, connecting production centers to consumption points via multimodal infrastructure. The company is Brazil's largest independent liquid bulk storage provider.

Key operational capacities and network points include:

• Total tons handled in 2024 was over 15 million.
• The fleet includes more than 450 barges.
• The Suape facility has a current total storage capacity of 157,910 m³, with 152,910 m³ dedicated to liquid bulk across 39 tanks.
• The Palmeirante (TO) terminal, starting operations in early 2025, has a capacity of 23,000 cubic meters.
• Planned expansions include adding 83,000 m³ at the Itaqui (MA) terminal by 2026, 25,000 m³ in Santos, and 22,000 m³ in Rondonópolis (MT).

For the third quarter of 2025, Ultracargo reported an Adjusted EBITDA of R$ 134 million.

Digital channels: abastece aí mobile app for payments and loyalty

The abastece aí mobile application serves as a digital channel for customer engagement, payments, and loyalty management, integrated with the Km de Vantagens program. This digital layer helps drive repeat business across Ipiranga service stations, AmPm stores, and Jet Oil services.

The scale of the associated loyalty program is significant:

• Km de Vantagens boasts 38 million participants.

The app facilitates direct transactions, allowing users to accumulate points when fueling at Ipiranga, using Jet Oil, or buying at AmPm, and also permits digital payments for vehicle debts like IPVA and licensing.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Customer Segments

You're looking at the specific groups Ultrapar Participações S.A. (UGP) serves across its energy and logistics infrastructure businesses as of late 2025. This isn't just one market; it's a collection of distinct customer bases relying on Ipiranga, Ultragaz, and Ultracargo.

Mass Market Vehicle Owners and Drivers (Ipiranga Fuel)

This segment is the core of Ipiranga's retail fuel distribution. These are the everyday drivers and fleet operators topping up at the pump, plus those using the associated convenience and service offerings. The scale here is significant, reflecting a deep penetration into the Brazilian mobility sector.

Key metrics for this customer base as of late 2025 include:

• Service stations network size as of September 2025: 5,812.
• Loyalty program participants (Km de Vantagens): Over 38 million participants.
• AmPm convenience stores count: 1,447 stores as of Q2 2025.
• Jet Oil service units: 1,145 units.

The total volume sold through this network is substantial, with 23.5 million of liters sold noted in the portfolio overview.

Residential Consumers (Bottled LPG) and Commercial/Industrial Clients (Bulk LPG)

Ultragaz targets both the end-user in homes and businesses requiring consistent, larger-volume supply. The bottled segment serves residential needs, while the bulk segment caters to commercial and industrial operations needing reliable, high-volume LPG.

Here's a breakdown of the customer reach for Ultragaz, based on 2024 volumes and Q3 2025 market dynamics:

It's worth noting the competitive pressure in Q3 2025; the total volume of LPG sold was 6% lower than Q3 2024, driven by a 3% decrease in the bottled segment and an 11% decrease in the bulk segment.

Large-Scale Commodity Producers and Traders Needing Bulk Storage (Ultracargo)

Ultracargo serves large-scale players-producers, traders, and distributors-who need secure, high-capacity storage and efficient handling of liquid bulk commodities like fuels and biofuels. They are the market leader in independent liquid bulk storage in Brazil.

The infrastructure supporting these clients is geographically strategic:

• Total static storage capacity: Approximately 1 million m³.
• Tons handled in 2024: Over 15 million tons.
• Terminals are located in key hubs including Santos (SP), Suape (PE), Itaqui (MA), and inland locations like Rondonópolis (MT).
• The Suape facility alone has a liquid bulk capacity of 152,910 m³ across 39 tanks, plus a 5,000 m³ sphere for butadiene.

The company is finalizing expansions, such as the one at Suape, which involves a BRL 155 million investment to add four 10,000 m³ tanks.

Road Transportation Companies Seeking LNG/Low-Carbon Fuel Solutions

This emerging segment is targeted by Ultragaz as part of its strategy to become a comprehensive energy solutions platform. These customers are looking for alternatives to traditional fuels for their road transportation fleets.

The focus here is on providing cleaner energy options:

• Ultragaz is actively providing Compressed Natural Gas (CNG) for corporate clients.
• The company is also offering biomethane to corporate clients.
• For 2025, Ultragaz allocated R$ 267 million of its expansion budget toward acquiring new bulk segment clients and exploring new energy sources.

This segment is tied to Ultrapar's broader strategic capital allocation, with Ultracargo receiving R$ 673 million in total investment for 2025, much of which is for expansion to enhance logistics efficiency.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Ultrapar Participações S.A.'s operations, which are heavily weighted toward product acquisition and massive infrastructure upkeep. Honestly, for a company dealing in fuels and LPG, the cost of the product itself is the biggest line item, even if we don't have the exact Cost of Goods Sold (COGS) for the quarter.

The sheer scale of Ultrapar Participações S.A.'s business means costs are substantial. For the third quarter of 2025, the reported Net Revenue hit R$ 37.1 billion. When you compare that to the Adjusted EBITDA of R$ 1.9 billion for the same period, it clearly shows that the cost of purchasing and handling the fuel and LPG products-the COGS-eats up the vast majority of that revenue before operating costs are even considered. That's just the nature of the distribution game.

Infrastructure investment is another major drain, but it's necessary for future growth. Ultrapar Participações S.A. reported a significant Capital Expenditure (CapEx) of BRL 756 million in Q3 2025. This spending highlights the ongoing need to expand and maintain the physical assets across Ipiranga's service station network and Ultracargo's storage terminals, plus technology upgrades like the ERP system replacement.

Logistics and distribution network maintenance costs are embedded within CapEx and operating expenses, but the scale of the network demands constant outlay. Consider the reach: Ultrapar Participações S.A. is a major player in fuel distribution via Ipiranga and bulk storage via Ultracargo, which operates terminals in the country's main ports. The consolidation of Hidrovias do Brasil further adds to the complexity and cost of maintaining a nationwide logistics footprint.

Financial expenses are a key component, especially given the company's capital structure. While Ultrapar Participações S.A. has been actively managing its debt, evidenced by the leverage ratio improving to 1.7x net debt to EBITDA by the end of Q3 2025, the absolute quantum of debt still generates significant interest and financing costs. The company noted higher financial expenses impacting the net income for Q3 2025.

Personnel costs are tied directly to the workforce size. As of the end of 2024, Ultrapar Participações S.A. had 9,558 direct employees, which aligns closely with the 9.56 thousand figure you mentioned. The company noted that lower personnel expenses in Q3 2025 were partly due to a smaller headcount.

Here's a quick look at some key financial metrics from Q3 2025 that frame these costs:

The cost structure is dominated by the input costs for fuel and LPG, which is typical for the sector. The ongoing need for infrastructure spending and the servicing of debt create the next largest layers of fixed and semi-fixed costs.

• High cost of product acquisition (COGS) relative to R$ 37.1 billion revenue.
• Significant infrastructure investment, with BRL 756 million in CapEx in Q3 2025.
• Personnel costs associated with approximately 9.56 thousand employees.
• Financial expenses driven by debt servicing, despite leverage improvement to 1.7x.
• Operating expenses covering the maintenance of the logistics and distribution network.

Finance: draft 13-week cash view by Friday.

Ultrapar Participações S.A. (UGP) - Canvas Business Model: Revenue Streams

You're looking at how Ultrapar Participações S.A. brings in the cash across its diverse operations as of late 2025. It's a mix of energy distribution, logistics, and retail, so the revenue streams reflect that complexity. Honestly, the numbers tell a clear story about where the money is coming from, even when some segments face headwinds.

The top line for the third quarter of 2025 was reported at BRL 37.03 billion. That's the total pool from which all the business units draw their income.

Here's a quick look at the key revenue-generating activities and their recent performance metrics:

• Fuel sales (gasoline, ethanol, diesel) and lubricants (Ipiranga) volume grew 1% to 6.17 million cubic meters in Q3 2025.
• Liquefied Petroleum Gas (LPG) sales (Ultragaz) volume saw a 6% decrease to 446,000 tons in Q3 2025.
• Storage fees and tariffs from liquid bulk terminal operations (Ultracargo) generated a net revenue of BRL 243 million in Q3 2025.
• Convenience store sales (AmPm) showed 10% revenue growth in the same-store sales concept as of Q2 2025, operating 1,460 stores.

To give you a clearer picture of the operational results feeding into those revenue streams, here's a breakdown of segment performance metrics from the third quarter of 2025, where available:

The fuel sales stream, through Ipiranga, is clearly the largest component, though its recurring profitability faced pressure. Also, note that Ultragaz's unit margin was about 2% per bottle in the second quarter, which is a thin margin for that scale of operation. The storage business, Ultracargo, provides a more fee-based revenue component, though its Q3 2025 net revenue was BRL 243 million, down 9% year-over-year, reflecting lower handling volumes. The loyalty program monetization for AmPm is less about raw volume and more about capturing customer data and driving higher-margin retail sales, which saw that 10% same-store growth in Q2 2025. It's a defintely diversified set of income sources.

For Ipiranga, the Q3 2025 EBITDA included BRL 185 million in extraordinary tax credits, which you need to factor out to see the underlying operational revenue quality. The recurring EBITDA for Ipiranga was 5% lower compared to Q3 2024, which is a key metric for assessing the core fuel and lubricants revenue stream's health.

Finance: review the Q4 2025 segment projections against the Q3 2025 performance by Monday.