Eucatex (EUCA4) Q4 2025 earnings summary

Executive summary

• Net revenue reached R$3,104.3 million in 2025, up 8.6% year-over-year, with recurring EBITDA of R$754.0 million (+27.7%) and recurring net income of R$340.3 million (+54.7%).

• Fourth quarter net revenue was R$777.1 million (+3.1% YoY), recurring EBITDA R$189.2 million (+14.7%), and recurring net income R$66.9 million (+59.1%).

• Performance was achieved despite a challenging macroeconomic environment, including high interest rates and sector slowdowns.

• Operational efficiency, cost discipline, and a focus on higher value-added products supported results.

Financial highlights

• Gross profit for 2025 was R$1,158.6 million (+22.5% YoY), with gross margin at 37.3% (+4.2 p.p.).

• Recurring EBITDA margin improved to 24.3% in 4Q25 and for the year (+3.6 p.p. YoY).

• Net income for 2025 was R$319.1 million (+61.2% YoY); recurring net margin improved to 11.0% (+3.3 p.p.).

• Net debt stood at R$602.0 million, representing 0.8x recurring EBITDA at year-end.

• Operating cash flow reached R$521.4 million in 2025, up from R$444.2 million in 2024.

Outlook and guidance

• Projected investments for 2026 total R$495.2 million (+29.8% vs. 2025), focusing on forest expansion, factory modernization, and new equipment.

• Reduction of US tariffs from 50% to 10% in early 2026 is expected to restore export competitiveness and support margin recovery.

• Revenue guidance for 2025 indicates continued growth across all segments.