Eucatex (EUCA4) Q1 2025 earnings summary

Executive summary

• Net revenue grew 16.2% year-over-year to R$744.7 million in 1Q25, driven by strong export growth, higher value-added product sales, and strategic sales management.

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

• Recurring net income rose to R$117.1 million in 1Q25, compared to R$100.8 million in 1Q24.

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

Financial highlights

• Net revenue reached R$744.7 million in 1Q25, up from R$641.0 million in 1Q24.

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

• Recurring EBITDA margin improved to 24.3% in 1Q25 from 19.2% in 1Q24.

• Net income for the period was R$96.0 million, up 80.0% year-over-year.

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

Segment performance

• Industry and resale accounted for 36% of net revenue, construction 34%, and exports 29% in 1Q25.

• Furniture Industry and Resale revenue grew 11.3%, driven by a 20% price increase and focus on higher value-added products.

• Construction segment revenue rose 3.7%, with strong laminated flooring sales offsetting declines in doors and paints.

• Export segment revenue jumped 58.8% due to new products, customers, and favorable exchange rates.

• Paints, flooring, and doors segments were key growth drivers.