Empresas CMPC (CMPC) Q2 2025 earnings summary

Executive summary

• Sales reached $1,907 million in Q2 2025, up 5% quarter-over-quarter and 1% year-over-year, with EBITDA at $332 million (17.4% margin), up 19% QoQ but down 12% YoY; net income was $81 million, up from $50 million in Q1 2025 but down from $125 million in Q2 2024.

• Major events included the acquisition of Falcon in Brazil by Softys and the divestment of TENSA, generating a non-recurring income of $74 million.

• Organizational restructuring introduced a new operational model with 10 vice presidencies and new executive appointments to support the 2030 strategy.

Financial highlights

• Operating costs rose 2% QoQ and 5% YoY, mainly due to Tensa cost recognition and higher pulp business costs.

• Free cash flow was a net outflow of $158 million in Q2 2025, compared to an inflow in Q1 2025 and a smaller outflow in Q2 2024.

• CapEx for the quarter was $327 million, mainly due to the Falcon acquisition and organic growth investments.

• Gross financial debt stood at $5,739 million, net debt at $5,018 million, and cash and equivalents at $721 million.

• Market capitalization declined 8% QoQ and 19% YoY to $3,747 million.

Outlook and guidance

• Management expects pulp demand and prices to improve in September and Q4, with early August sales indicating strong demand.

• Cost improvement programs and efficiency initiatives are expected to continue, with margin recovery anticipated in Softys by year-end.

• No plans to delay the Natureza project; robust financial planning and deleveraging initiatives are underway.

• Dividend policy for 2025 set at 30% of distributable net income, with two interim and one final dividend.