Dexco (DXCO3) Q3 2026 earnings summary

Executive summary

• 3Q26 revenue rose 9.8% YoY to R$2.336bn; adjusted recurring EBITDA grew 31.6% to R$585.4m, with a 25.1% margin.

• Reported net loss was R$142.2m; excluding R$136.7m of non-recurring items, recurring net loss was R$5.5m, improving from R$42.8m in 3Q25.

• Wood and LD Celulose led earnings growth while Ceramic Tiles remained pressured; cash generation and working-capital discipline supported deleveraging.

Financial highlights

• 9M26 revenue was R$6.586bn, up 7.1% YoY; adjusted recurring EBITDA reached R$1.611bn, up 30.6%, with a 24.5% margin.

• 3Q26 gross profit was R$565.1m, up 15.3% YoY; pro forma gross margin was 25.7%, up 0.8 percentage points.

• 3Q26 operating free cash flow was R$557.7m and total free cash flow was R$635.5m; 9M total free cash flow reached R$991.2m versus a R$335.5m outflow in 9M25.

• 9M26 recurring net income was R$100.2m, up 41.2% YoY.

• 3Q26 recurring adjusted EBITDA excluding LD Celulose was R$585.4m; pro forma EBITDA including LD Celulose was R$783.6m.

Outlook and guidance

• Priorities include profitability, operating efficiency, cash generation, working-capital efficiency, asset monetization and further deleveraging; capital allocation favors selective, higher-return projects.

• 2027 planning assumes ~1% market growth; management said growth of 0.5% or zero was manageable, with roughly two-thirds of expected tile improvement planned from cost actions.

• Ceramic Tiles aims to stabilize operations in 2027 through productivity and cost improvements and greater premium-segment value share; pricing pressure remains a concern.

• Tile plant transitions, logistics and learning curves are expected to weigh on Q4, with gradual improvement as the adjusted footprint enters 2027.

• LD Celulose’s October maintenance shutdown is expected to affect 4Q26; Q1 2027 is also expected to be challenging amid tax reform effects.