Dexco (DXCO3) Q2 2026 earnings summary

Executive summary

• Consolidated net revenue rose 5.2% year-over-year to R$2,231.5 million in Q2 2026, led by strong Wood Division performance and price/mix improvements in Metals & Sanitary Ware, while Tiles remained pressured by weak market conditions.

• Adjusted and recurring EBITDA grew 23.7% year-over-year to R$547.4 million, with margin expansion to 24.5%, reflecting operational efficiency and disciplined cost management, especially in Wood and Metals & Sanitary Ware.

• Recurring net income increased 13.3% year-over-year, reversing prior losses and reflecting improved competitiveness and profitability initiatives.

• Free cash flow was robust, supported by disciplined capital allocation, working capital gains, and reduced project Capex.

• Financial deleveraging continued, with net debt reduced to R$5,135.1 million and leverage at 2.72x EBITDA, down from 3.39x a year earlier.

Financial highlights

• Consolidated net revenue: R$2,231.5 million in Q2 2026 (+5.2% YoY); recurring net income up 13.3% YoY.

• Adjusted and recurring EBITDA: R$547.4 million (+23.7% YoY), margin 24.5%; pro forma EBITDA (including LD Celulose) R$713.7 million (+1.6% YoY).

• Gross margin: 24.6% (up 1.6 p.p. YoY); gross profit R$549.9 million (+12.9% YoY).

• Free cash flow from operations: R$455.1 million in Q2 2026; positive free cash flow at R$120.7 million.

• Net debt: R$5,135.1 million, leverage ratio (Net Debt/EBITDA LTM) at 2.72x.

Outlook and guidance

• Management remains focused on portfolio profitability, operational efficiency, and cash generation amid a challenging macroeconomic and sector environment.

• Cautious outlook for Tiles and Metals & Sanitary Ware due to persistent cost pressures and selective demand; Wood Division expected to sustain strong performance.

• Ongoing cost discipline and productivity initiatives are expected to support margins.