Dexco (DXCO3) investor relations material

Strategic overview and business segments

• Celebrating 75 years, the company operates in wood panels, metals & sanitary ware, ceramic tiles, and dissolving wood pulp, with a diversified portfolio and strong brands in Brazil and Colombia.

• Maintains 21 manufacturing and forestry units, with a focus on sustainability and a minimum 30% dividend payout policy.

• Governance includes a robust structure with independent board members, statutory committees, and a whistleblowing channel.

• Recent history features portfolio diversification, operational restructuring, and a new investment cycle, with a focus on innovation and sustainability.

• Strategic priorities for 2026 include financial deleveraging, go-to-market initiatives, tiles turnaround, wood innovation, and Deca competitiveness.

Financial and operational performance

• Adjusted recurring EBITDA reached R$547 million in 2Q26, up 23.6% YoY, with strong operating cash generation and continued deleveraging.

• Net debt/EBITDA ratio improved to 2.72x, with net debt reduced by R$200 million in the quarter.

• Recurring net revenue for 1H26 grew 5.6% YoY, with gross margin at 24.5%.

• Free cash flow for 1H26 was R$1,025 million, driven by disciplined working capital and capex management.

• Dividend policy ensures a minimum payout of 30% of net income, with consistent annual payments.

Division highlights

• Wood division delivered resilient earnings despite cost pressures, with 1H26 EBITDA margin at 30.9% and capacity utilization at 96%.

• Metals & sanitary ware focused on profitability, achieving a 7.3 p.p. gross margin expansion and 8.4 p.p. EBITDA margin increase in 1H26.

• Ceramic tiles division maintained volume discipline and improved margins despite weak demand and high industry inventories.

• LD Celulose JV reported R$339 million EBITDA in 2Q26 (47.4% margin), with all production exported and strong operational integration.