Irani Papel e Embalagem (RANI3) investor relations material

Executive summary

• 3Q26 set quarterly records for net revenue, adjusted EBITDA and paper production; corrugated packaging volumes grew 11.5% YoY and market share reached 4.3%.

• Higher corrugated sales volume supported revenue and adjusted EBITDA growth; net profit growth also reflected a larger biological-asset fair-value gain.

Financial highlights

• Net revenue was BRL 456.578 million, up 5.3% YoY and 5.7% QoQ; adjusted EBITDA from continuing operations reached BRL 151.990 million, up 3.9% YoY and 15.5% QoQ.

• Adjusted EBITDA margin was 33.3%, versus 30.5% in 3Q25; COGS rose 5.1% YoY to BRL 295.9 million and was 64.8% of net revenue.

• Continuing-operations net income was BRL 56.512 million, up 34.3% YoY; the BRL 26.3 million non-cash biological-asset fair-value gain contributed to the increase.

• Excluding biological-asset fair-value effects, recurring quarterly net income was BRL 39.6 million, up 1.9% YoY; LTM adjusted free cash flow was BRL 353.7 million and FCF yield was 18.1%.

Outlook and guidance

• Corrugated packaging market-share guidance targets 8% by 2034; the 2026 projection is 3.7–4.1%, with 4.2% achieved through September.

• Gaia XII is a BRL 514 million expansion targeting a 60% increase in PM #7 capacity, with completion scheduled for 4Q29; major equipment specifications were in preparation.

• Gaia X completion was rescheduled to 4Q27; Gaia XI completion is expected in 2Q28, with its rewinder scope scheduled for 1Q28.

• Management expects near-term stability in scrap prices and COGS and is pursuing packaging price recovery for early next year.