Eucatex (EUCA4) Q2 2025 earnings summary

Executive summary

• Net revenue grew 13.8% in 2Q25 and 15.0% in 1H25 year-over-year, driven by strong export performance, improved product mix, and strategic sales management.

• Recurring EBITDA rose 34.5% in 2Q25 and 35.9% in 1H25, with margins expanding to 24.4%.

• Recurring net income increased 31.8% in 2Q25 and 49.4% in 1H25, reflecting operational improvements.

• Export revenue surged 40.8% in 2Q25, supported by higher sales volume, price increases, and favorable exchange rates.

Financial highlights

• Net revenue reached R$784.1 million in 2Q25, up from R$688.8 million in 2Q24; 1H25 revenue was R$1,528.8 million.

• Recurring EBITDA: R$191.6 million in 2Q25 (+34.5% YoY); R$372.9 million in 1H25 (+35.9% YoY).

• Gross margin improved to 36.6% in 2Q25 from 32.4% in 2Q24.

• Net debt decreased to R$560.2 million, with net debt/EBITDA at 0.8x.

• Investments in 2Q25 totaled R$87.7 million, focused on industrial and forest operations.

Outlook and guidance

• Management expects continued growth but highlights uncertainty due to new US tariffs on Brazilian exports, which may impact export volumes and margins.

• Planned investments for 2025 total R$347.8 million, with R$173.6 million already realized in 1H25, focusing on forestry, panel factories, and technology.

• 2025 GDP growth for Brazil is projected at 2.2%, with construction materials trade revenue expected to grow 2.9%.