Eternit (ETER3) Q2 2025 earnings summary

Executive summary

• Net income reached R$30.6 million in 2Q25, up 161.9% year-over-year, driven by gross margin recovery, operational gains, and tax credits.

• Recurring EBITDA increased 122.2% to R$34.7 million, reflecting operational improvements and cost controls.

• Gross profit rose 19.8% to R$72.1 million, with gross margin at 25.7%, up 3.9–4 p.p. from 2Q24.

• Chrysotile mineral sales volume rose 15.3% year-over-year, with export gross margin up 2.9 p.p.

• Corporate reorganization advanced with the merger of Tégula, aiming for greater efficiency.

Financial highlights

• Net revenue grew 1.5% year-over-year to R$280.1 million in 2Q25.

• Gross profit was R$72.1 million (+19.8% YoY), with gross margin at 25.7%.

• Recurring EBITDA margin rose to 12.4% from 5.7% in 2Q24.

• Net margin improved to 10.9% from 4.2% in 2Q24.

• Cost of goods sold decreased by 3.6% to R$208.0 million.

Outlook and guidance

• The company expects continued growth in the chrysotile export segment, supported by favorable exchange rates and increased shipping availability.

• Construction systems segment remains a strategic focus, with ongoing investments despite short-term revenue impact from production ramp-up.

• The construction materials sector is projected to grow 2.8% in 2025, despite macroeconomic and international trade challenges.

• Inflation and family indebtedness remain risks, but lower interest rates may support construction demand.