Empresas CMPC (CMPC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 sales reached $1,891 million, up 1% quarter-over-quarter, with net income of $37 million, a 10% increase QoQ and 261% YoY, driven by higher income from biological assets and lower tax expenses.

• Consolidated EBITDA was $262 million, up 1% QoQ but down 21% YoY, with pulp contributing 59%, Softys 39%, and Biopackaging 2%.

• Pulp drove quarterly growth, while Softys faced increased competition and Biopackaging struggled with lower volumes.

Financial highlights

• Pulp EBITDA was $168 million (21.9% margin), Softys $107 million (12.4% margin), Biopackaging $7 million (2.8% margin); consolidated EBITDA margin was 13.8%.

• Net income margin improved due to operational efficiencies and favorable exchange rates.

• Operating costs increased 1% QoQ and 2% YoY, mainly due to higher sales volume and Falcon consolidation in Brazil.

• CapEx for the quarter was $179 million, down 31% YoY.

• Free cash flow in 4Q25 was $308 million, up 37% QoQ and 19% YoY.

Outlook and guidance

• All pulp contract volumes for 2026 secured, with over-demand in some regions; hardwood market outlook is positive, softwood remains challenging.

• Softys expects to continue margin expansion through pricing, cost control, and efficiency initiatives, despite competitive pressures and currency fluctuations.

• Biopackaging anticipates gradual recovery as operational issues are addressed and market conditions improve.

• Management expects leverage ratios to improve in 2026, targeting a Net Debt/EBITDA range of 2.5x–3.5x, supported by operating cash flow and asset sales.