Eucatex (EUCA4) Q1 2026 earnings summary

Executive summary

• Net revenue grew 5.2% year-over-year to R$783.8 million in 1Q26, driven by strong performance in key business lines despite a challenging macroeconomic environment.

• Recurring EBITDA increased to R$196.9 million (25.1% margin), and recurring net income rose to R$181.3 million, with reported net income reaching R$186.4 million due to non-recurring gains.

• Export competitiveness improved after the US reduced tariffs from 50% to 10%, offsetting some negative exchange rate impacts.

Financial highlights

• Net revenue reached R$783.8 million in 1Q26, up 5.2% from R$744.7 million in 1Q25.

• Recurring EBITDA rose to R$196.9 million (25.1% margin) from R$143.5 million (18.3% margin) in 1Q25.

• Recurring net income increased to R$181.3 million from R$138.4 million year-over-year.

• Net debt decreased 6.7% to R$561.8 million, with net debt/EBITDA at 0.7x.

• Investments totaled R$104.8 million in 1Q26, with a planned increase to R$495.2 million for 2026.

Outlook and guidance

• Investments planned for 2026 total R$495.2 million, focusing on plant modernization, forest expansion, and sustainability initiatives.

• Growth prospects in international markets are supported by the recent US tariff reduction and ongoing product mix improvements.

• Market forecasts indicate continued volatility in construction and coatings segments.