Empresas CMPC (CMPC) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 sales reached $1.9 billion, up 1% quarter-over-quarter, with net income of $37 million and consolidated EBITDA of $262 million, driven by pulp growth and supported by higher biological asset income and lower tax expenses.

• Pulp business led growth with higher international prices and increased hardwood sales, while Softys and Biopackaging faced competitive and demand pressures.

• The company advanced the Natureza Project, secured a port concession in Brazil, and continued environmental permitting.

• Achieved AAA rating from CDP for environmental performance and was recognized as the world’s most sustainable forestry company by Dow Jones Index.

• Changed accounting policy for forestry land valuation to fair value, increasing assets and equity.

Financial highlights

• Pulp EBITDA was $168 million (21.9% margin), Softys $107 million (12.4% margin, up 13% QoQ), and Biopackaging $7 million (2.8% margin, down sharply QoQ and YoY).

• Net income increased to $37 million from $34 million in Q3 and $10 million in Q4 2024, driven by higher EBITDA and favorable exchange rates.

• Adjusted EBITDA margin was 13.8% in 4Q25, down from 14.0% in 3Q25 and 17.3% in 4Q24.

• Operating costs and other operating expenses rose 1% and 4% QoQ, respectively.

• CapEx for the quarter was $179 million, down from $261 million YoY due to lower maintenance expenses.

Outlook and guidance

• All 2026 pulp volumes are contracted, with over-demand in some regions; hardwood market outlook is positive, while softwood remains challenging.

• Softys expects continued margin improvement through price increases, cost efficiencies, and distribution network expansion, despite overcapacity in Brazil and Mexico.

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

• 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.

• Ongoing asset monetization and operational improvements are expected to support financial resilience.