Eucatex (EUCA4) Q1 2025 earnings summary

Executive summary

• Net revenue reached R$744.7 million in 1Q25, up 16.2% year-over-year, driven by strong export growth, price increases, and higher value-added product sales.

• Recurring EBITDA increased 31.9% to R$181.3 million, with margin expanding to 24.3%.

• Recurring net income surged 69.1% to R$100.8 million, reflecting operational improvements and favorable financial results.

• All main business segments showed positive performance, especially exports.

• Despite a challenging economic environment, the company maintained robust growth and profitability.

Financial highlights

• Gross profit grew 30.8% to R$280.5 million, with gross margin up 4.2 p.p. to 37.7%.

• Net income for the period was R$96.0 million, up 80% year-over-year.

• Net debt stood at R$602.4 million, with net debt/EBITDA improving to 0.9x from 1.1x.

• Cash and equivalents nearly doubled to R$466.7 million, supporting a strong liquidity position.

• Investments in 1Q25 totaled R$86.1 million, mainly in forestry and industrial operations.

Outlook and guidance

• Management expects continued growth in core sectors, supported by resilient domestic demand and government housing programs.

• Planned investments for 2025 are R$347.8 million, up 29.8% over 2024, focused on forest expansion, productivity, and technology.

• Industry projections indicate a 2.8% growth in construction materials and positive trends in paints and wood panels.