Empresas CMPC (CMPC) Q1 2025 earnings summary

Executive summary

• First quarter 2025 sales reached $1.813 billion, down 6% quarter-over-quarter and 7% year-over-year, with declines across all business segments.

• EBITDA was $278 million (15.3% margin), down 16-17% quarter-over-quarter and 30% year-over-year, but up 7% year-over-year in the Pulp segment due to higher volumes and cost efficiencies.

• Net income rose to $50 million from $10 million in the previous quarter but fell from $209 million year-over-year, impacted by prior year insurance compensation and lower Softys results.

• Free cash flow was positive at $85 million, reversing outflows in prior periods.

• The company maintained its position among the top 1% of sustainable companies globally and advanced key sustainability projects.

Financial highlights

• Operating costs decreased 3% quarter-over-quarter and 1% year-over-year; other operating expenses fell 6% quarter-over-quarter and 2% year-over-year.

• EBITDA margin declined to 15.3% from 17.3% in Q4 2024 and 20.4% in Q1 2024.

• Capex was $150–152 million, down from $261 million in Q4 2024, focused on organic growth.

• Net debt stood at $4.843 billion, gross debt at $5.5 billion, and cash and equivalents at $666 million.

• Free cash flow was $85 million, but one source reported $3 million, reflecting different calculation periods.

Outlook and guidance

• Dividend policy for 2025 maintained at 30% of distributable net income, with two interim dividends and a final dividend subject to AGM approval.

• No decision on the Natureza project is expected in 2025; focus remains on studies and preparation, with a board decision likely in the second half of 2026.

• Continued focus on core businesses, operational efficiency, and sustainability targets.

• Softys margins are expected to recover to near 2024 levels by the last quarter of 2025, driven by cost reduction and efficiency strategies.

• Biopackaging demand remains weak globally, with some recovery expected later in the year, especially in corrugated boxes.