Irani Papel e Embalagem (RANI3) Q2 2026 earnings summary

Executive summary

• Net revenue reached BRL 431.9 million in 2Q26, up 4.4% year-over-year and 5.4% sequentially, driven by higher sales volume and operational normalization post-scheduled stoppages.

• Adjusted EBITDA was BRL 131.6 million (margin 30.5%), up 8.2% year-over-year, despite temporary cost impacts from technical issues in power generation.

• Net profit declined 70.3% year-over-year to BRL 30.9 million, mainly due to lower fair value gains on biological assets and absence of prior year non-recurring tax credits.

• Market share in sustainable packaging (corrugated) rose to 4.1%, outpacing the Brazilian market's growth.

• Strategic investments advanced, including the launch of Project Gaia XII (BRL 514 million) to expand Paper Machine 07 capacity by 60%, supporting disciplined growth and modernization.

Financial highlights

• Adjusted EBITDA grew 8.2% year-over-year to BRL 131.6 million, with margin improving to 30.5%.

• Net income dropped from BRL 70.5 million to BRL 30.9 million due to prior year’s one-time gains and lower biological asset revaluation.

• ROIC reached 12.5% (LTM), up 0.2 p.p. sequentially, with a 3.3 p.p. spread over average cost of debt.

• Free cash flow yield (LTM) was 18.7%, with BRL 48.1 million generated in 2Q26.

• Dividend yield was 6.6% over the last twelve months, with BRL 110.1 million paid.

Outlook and guidance

• Target to double market share in sustainable packaging (corrugated) to 8% by 2034, with current share at 4.1%.

• Ongoing investments in capacity expansion and modernization, including Gaia XII and Neos projects.

• Continued focus on sustainability, decarbonization, and operational efficiency.

• Monitoring cost pressures from scrap prices and logistics, with expectation of stabilization if demand holds.

• Operational ramp-up of new projects expected to drive further productivity and efficiency gains.