Eternit (ETER3) Q2 2026 earnings summary

Executive summary

• Net revenue grew 6.1% year-over-year in 2Q26 to R$293.6 million, driven by strong fiber-cement and industrialized construction performance, while net income fell 55.4% to R$13.6 million due to a sharp drop in the Chrysotile Mineral segment and margin compression.

• The company continued to focus on expanding higher value-added businesses, operational efficiency, and sustainability, including the relocation of its headquarters to Hortolândia.

• Discontinued the concrete roofing tile line, with financial impacts including asset write-downs and sales of related assets.

Financial highlights

• Fiber-cement sales volume rose 14% year-over-year to 172,000 metric tons, with revenue up 25.4% to R$210.1 million and gross profit up 75.9% to R$41.5 million.

• Industrialized construction revenue increased 50.3% year-over-year to R$16.7 million.

• Gross profit for 2Q26 was R$53.9 million, down 25.4% year-over-year, with gross margin at 18.3% (down 8 p.p.).

• Net income for the quarter was R$13.6 million; recurring EBITDA reached R$22.4 million, with margin at 7.6% (down 5 p.p. year-over-year).

• Net debt at quarter-end was R$161.2 million, with Net Debt/Recurring EBITDA at 2.96x.

Outlook and guidance

• The company expects stabilization in the Chrysotile Mineral segment in 2H26 and gradual recovery in the construction sector, with ABRAMAT forecasting 1.9% real revenue growth for 2026.

• Strategic focus remains on expanding higher value-added and industrialized construction businesses, margin recovery, and operational efficiency.

• Anticipate normalization of working capital and inventory levels as shipment timelines stabilize.