Empresas Copec (COPEC) Q4 2025 earnings summary

Executive summary

• EBITDA for Q4 2025 was US$599 million, down 7.3% year-over-year and 6.7% sequentially, mainly due to lower forestry performance from reduced pulp prices, partially offset by strong energy division results.

• Adjusted EBITDA, including non-consolidated companies like Mina Justa, reached US$714 million, up 10.2% year-over-year, reflecting the growing importance of these assets.

• Net income rose 26.4% year-over-year and 22.0% sequentially to US$242 million, driven by mining (Mina Justa) and energy, with a one-time US$82 million impairment reversal.

• Revenues in Q4 2025 increased 10.8% year-over-year and 4.8% sequentially to US$7.7 billion.

• Major projects advanced: Sucuriú in Brazil reached 43% completion, and panel expansions in Chile and Mexico hit 74–75%.

Financial highlights

• Adjusted EBITDA was US$714 million, up 10.2% year-over-year; Q4 EBITDA was US$599 million, down 7.3% year-over-year.

• Net financial debt to EBITDA rose to 3.58x (or 3.26x using Adjusted EBITDA), reflecting higher net debt and heavy investment.

• CapEx for the year was US$955 million, mainly for Sucuriú and forestry projects.

• Energy EBITDA grew 30.1% year-over-year to US$322 million; forestry EBITDA dropped 29.4% to US$288 million.

• Gross profit in Q4 2025 was US$1.07 billion, with main contributions from Copec, Arauco, and Abastible.

Outlook and guidance

• Market pulp production expected to decline in Q1 2026 due to mill closures, strikes, and weather disruptions, potentially supporting prices.

• Stable demand in China and Europe, with some price increases already announced for March and upward momentum in hardwood.

• North American wood products markets remain challenging, while Brazil and LatAm show positive trends.

• Ongoing expansion of fast-charging infrastructure and renewable energy projects, with further growth planned for 2026.

• Strategic focus remains on natural resources, energy, innovation, and sustainability.