Irani Papel e Embalagem (RANI3) Q3 2025 earnings summary

Executive summary

• Net revenue reached BRL 433.5 million in 3Q25, up 4.7% year-over-year, driven by higher prices and volumes in packaging segments and operational efficiency gains.

• Adjusted EBITDA was BRL 146.2 million, up 15.9% year-over-year, with margin expanding to 33.7% due to efficiency and Gaia Platform project gains.

• Net profit for the period was BRL 42.1 million, up 5.3% year-over-year but down 62.5% sequentially due to non-recurring tax credits in 2Q25.

• The company completed the 2024 Share Repurchase Program and launched a new 2025 program, with over 23 million shares repurchased since 2021.

• Moody’s and S&P reaffirmed high credit ratings, reflecting strong liquidity and competitive positioning.

Financial highlights

• Gross profit in 3Q25 was BRL 157.4 million, with a gross margin of 36.3%.

• Adjusted EBITDA margin improved to 33.7% from 30.5% in 3Q24.

• Net debt/Adjusted EBITDA ratio improved to 2.06x from 2.26x a year ago.

• ROIC for the last twelve months was 12.9%, up 1.9 p.p. year-over-year.

• Adjusted free cash flow was BRL 100.3 million, up 202% year-over-year.

Outlook and guidance

• Management expects continued margin improvement and operational efficiency gains as Gaia Platform projects ramp up.

• The company targets a net debt/EBITDA ratio below 2.5x, in line with its financial policy.

• Ongoing investments in operational efficiency and sustainability are expected to support future growth.

• The Gaia V Project (São Luiz Repowering) is expected to enhance capacity and renewable energy supply.

• The company is preparing for Brazil’s new tax regime, with no immediate impact on 2025 results.