Eternit (ETER3) Q1 2026 earnings summary

Executive summary

• Industrialized construction revenue grew 17.7% year-over-year, reinforcing portfolio diversification and resilience.

• Net revenue declined 6.5% to R$262.0 million, mainly due to lower chrysotile export volumes and adverse exchange rates.

• Fiber cement sales remained stable, with volumes up 0.5% year-over-year to 176,000 tons, despite a 4% market decline.

• Chrysotile mineral segment volumes dropped 26.9% to 22,000 tons, with revenue down 29.2% due to maintenance, market changes, and exchange rate impacts.

• Recurring EBITDA was negative at -R$0.7 million, and net loss widened to R$12.3 million.

Financial highlights

• Net revenue: R$262.0 million (-6.5% YoY); gross profit: R$33.9 million (-17.2% YoY); gross margin: 12.9% (down 1.7 p.p. YoY).

• Fiber cement segment revenue was R$206.5 million (-3.1% YoY), with gross margin at 12.8%.

• Chrysotile mineral segment revenue dropped 29.2% to R$49.4 million, with gross margin at 13.0%.

• EliteMov logistics platform contributed R$6.1 million in net revenue and is expanding.

• Net financial expense improved to R$2.0 million from R$6.4 million YoY, mainly due to positive FX effects.

Outlook and guidance

• Industrialized construction is expected to remain the main growth and profitability driver.

• EliteMov logistics platform is anticipated to expand, improving service and customer loyalty.

• Management remains focused on portfolio transition, cost optimization, and productivity initiatives.

• Gradual recovery in construction materials sector expected as confidence and activity indicators improve.