Irani Papel e Embalagem (RANI3) Q2 2025 earnings summary

Executive summary

• Net revenue reached BRL 413.8 million in 2Q25, up 11.6% year-over-year, driven by higher prices in packaging segments despite seasonal volume declines.

• Profit for the period was BRL 112.1 million, up 168.5% year-over-year, aided by non-recurring IPI tax credits and increased fair value of biological assets from forest acquisitions.

• Adjusted EBITDA from continuing operations was BRL 127.5 million, up 6.8% year-over-year, with a margin of 30.8%.

• Net Debt/EBITDA ratio rose to 2.30x, reflecting higher net debt due to dividends and share buybacks, but remains within policy limits.

• Cash position at quarter-end was BRL 627.1 million, with 91% of gross debt long-term and 99% in local currency.

Financial highlights

• Gross profit was BRL 216.0 million, up 38.5% year-over-year, with gross margin at 52.2%.

• Net margin improved to 27.1% from 11.3% in 2Q24.

• Adjusted free cash flow was BRL 155.5 million, up 41.3% year-over-year, with a 16.3% yield.

• ROIC for the last twelve months was 11.8%, up from the previous quarter.

• Dividend yield for the last twelve months was 7.82%; total dividends paid in LTM: BRL 153.9 million.

Outlook and guidance

• Management expects continued resilience in margins, supported by pricing strategies, operational efficiency, and ongoing investments in modernization and sustainability.

• Returns from Gaia Platform investments are expected to gradually strengthen operating cash flow.

• ROIC for the last 12 months was 11.8%, with expectations for further improvement as new projects ramp up.