Klabin (KLBN4) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 4.9 billion in Q1 2025, up 10% year-over-year, with Adjusted EBITDA of BRL 1.9 billion, a 13% increase, and a margin of 38%, despite a volatile macroeconomic environment.

• Free cash flow yield was 14.0% in the last twelve months, with BRL 409 million generated in Q1 2025 and BRL 3.6 billion over the last year.

• Dividend yield stood at 5.8% over the last twelve months, with BRL 1.477 billion paid to shareholders.

• ROIC improved to 10.7% in Q1 2025, up 1.0 p.p. year-over-year, reflecting disciplined capital allocation.

• Sustainability recognitions include inclusion in the S&P Global Sustainability Yearbook and the ISE portfolio for the 12th consecutive year.

Financial highlights

• Adjusted EBITDA margin rose to 38% in Q1 2025, up 1 p.p. year-over-year.

• Net debt at end of Q1 2025 was BRL 30.5 billion, with gross debt at BRL 37.0 billion and cash position of BRL 6.5 billion.

• Net Debt/EBITDA (USD) was 3.9x, and Net Debt/EBITDA (BRL) was 3.2x, both stable and within policy limits.

• Free cash flow for the quarter was BRL 409 million; last 12 months' adjusted free cash flow totaled BRL 3.6 billion (14% yield).

• Capex in Q1 2025 was BRL 605 million, down 35% year-over-year, reflecting the completion of major projects.

Outlook and guidance

• Production ramp-up for Puma II and cost optimization initiatives are on track, with cash cost per ton guidance for 2025 reaffirmed at BRL 3.1–3.2 thousand.

• Capex guidance for 2025 is BRL 3.3 billion, maintaining the investment level of 2024.

• Expect higher sales volumes in Q2 2025 across most segments due to seasonality and operational recovery.

• Fluff pulp expected to benefit from global trade shifts, with improved prices and volumes in coming quarters.

• Deleveraging remains a priority, with robust free cash flow expected over the next 18-24 months before considering new investments.