Eternit (ETER3) Q4 2025 earnings summary

Executive summary

• 2025 marked a year of transformation and strategic shift, focusing on industrialized construction, ESG, and operational efficiency, with modernization initiatives such as plant consolidation and SAP S/4HANA adoption.

• Social and ESG initiatives advanced, including the Eternit por Elas program, CO₂ sequestration research, and increased female leadership.

• Significant growth in net income and EBITDA was achieved despite a challenging macroeconomic environment.

• Strategic initiatives included the consolidation of the Caucaia plant, SAP S/4HANA rollout, and launch of a Shared Services Center.

• The company completed the incorporation of Tégula S.A., discontinued the concrete tile line, and sold non-core assets to optimize its portfolio.

Financial highlights

• Net income reached R$49 million, up 26.2% year-over-year; EBITDA (CVM 156/22) was R$112.5 million (+20.6%), while recurring EBITDA dropped 16.6% to R$71.2 million due to non-recurring items.

• Net revenue totaled R$1.2 billion (or R$1.15 billion), a 0.6% increase year-over-year.

• Gross profit was R$237 million with a margin of 20.6%–21%, down 8.3% from 2024.

• Dividend distribution of R$10.5 million (R$0.17/share) was approved for 2026.

• Fiber cement sales grew 2.3% to 672,099 tons, with net revenue of R$772 million (+1.8%) and gross margin improving to 12.3%.

Outlook and guidance

• 2026 strategy centers on innovation, strengthening industrialized construction, and people development, with expansion in higher value-added solutions.

• Industrialized construction to become more central, leveraging existing assets with minimal new investment.

• Continued focus on operational efficiency, portfolio optimization, and ESG initiatives.