Dexco (DXCO3) investor relations material

Executive summary

• Pro-forma adjusted and recurring EBITDA reached R$1,313 million in 1H25, with strong Wood Division and LD Celulose performance.

• Q2 adjusted and recurring EBITDA was R$443 million, margin 20.9%, mainly from Wood and LD Celulose.

• Consolidated net revenue rose 6.3% year-over-year to R$2,121.7 million in 2Q25, driven by Wood and forestry trading.

• Finishes Division delivered positive results despite cost pressures, but recurring net income dropped 71.5% year-over-year due to a high base and negative financial results.

• Sustaining free cash flow was negative R$90.6 million, reflecting higher working capital needs.

Financial highlights

• Adjusted and recurring EBITDA for 2Q25 was R$442.6 million (+17.6% YoY), margin 20.9%; pro-forma including LD Celulose was R$702.2 million.

• Wood Division's adjusted and recurring EBITDA reached R$427.9 million in 2Q25, up 34% year-over-year, margin 29.9%.

• LD Celulose Q2 EBITDA was R$529 million, margin 60.5%; net income R$191 million.

• Sustaining CAPEX for H1 was R$367 million, down 14% year-over-year; 2Q25 sustaining CAPEX was R$205.5 million, down 22.7% YoY.

• Net debt at quarter-end was R$5,499.3 million, leverage at 3.39x net debt/EBITDA.

Outlook and guidance

• Continued strong demand and expected price increases in the wood division for H2.

• Tiles division expects efficiency gains from the new Botucatu plant and plant optimizations.

• Metals and sanitary ware to see gradual efficiency and cost improvements from factory reorganization.

• LD Celulose maintenance stoppage scheduled for 2025; positive medium-term outlook despite lower pulp prices.

• Focus on deleveraging and efficiency projects amid macroeconomic and political uncertainty.