Irani Papel e Embalagem (RANI3) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 ranged from BRL 1,686.3 million to BRL 1,726.5 million, up 6.1–8.4% year-over-year, driven by price recovery and improved sales mix.

• Adjusted EBITDA rose 11.4–11.8% to BRL 531.8–539.0 million, with margin expanding to 31.5–32.0%.

• Profit for the period was BRL 242.1 million, down 20.5% due to non-recurring tax credits in 2024; recurring profit excluding biological assets increased 64.9%.

• ROIC improved to 13.3% in 2025, a 2.5 p.p. increase, reflecting returns from Gaia investments.

• Free cash flow yield reached 21.5%, with strong liquidity and reduced leverage.

Financial highlights

• Gross profit for 2025 was BRL 700.2 million, up 11.9% year-over-year.

• Net debt/Adjusted EBITDA improved to 1.99x at year-end 2025 from 2.26x in 2024.

• Dividend payout above 50%, with BRL 0.73357 per share distributed (10.8% yield); additional dividends proposed for 2025.

• Cash position at year-end 2025 was BRL 839.8 million, up 39% from 2024.

• Cost of debt after taxes was 8.9% per year.

Outlook and guidance

• 2026 expected to be challenging due to global and local macroeconomic uncertainties, high capital costs, and tax reform transition.

• The sustainable packaging sector is projected to remain resilient, supported by essential consumption chains.

• Management expects to capture further returns from Gaia investments and maintain flexibility and strong liquidity.

• Demand for packaging expected to be stable to moderately growing, with positive impact from election and World Cup events.

• Commitment to climate goals, maintaining a positive GHG balance above 20% ahead of 2030 targets.