Klabin (KLBN4) Q2 2025 earnings summary

Executive summary

• Entered a 'harvest' phase after major investments, focusing on efficiency, cash generation, and deleveraging.

• Net revenue for H1 2025 reached R$10.1 billion, up 7.8% year-over-year, with consolidated net profit at R$1.03 billion, a 33% increase from H1 2024.

• Adjusted EBITDA for H1 2025 was R$3.9 billion, up 5% year-over-year, with a margin of 39% in 2Q25.

• Robust liquidity and extended debt profile support resilience in uncertain macroeconomic conditions, with cash and equivalents plus marketable securities totaling R$8.1 billion.

• Recognized for sustainability leadership, winning the 2025 Best in ESG award in the Pulp, Paper and Forest Products category.

Financial highlights

• Sales volume reached 1.11 million tons in Q2 2025, up 2% year-over-year, driven by pulp exports and corrugated boxes.

• Net revenue for Q2 2025 was R$5.3 billion, a 6% increase year-over-year, supported by higher Kraftliner and packaging prices and currency effects.

• Adjusted EBITDA was R$2.041 billion in Q2 2025, stable year-over-year, with a margin of 39%.

• Net income for Q2 2025 was R$585 million, up 86% year-over-year.

• Total cash cost per ton decreased 5% sequentially to R$2,892–R$3,148, mainly due to lower chemical and administrative expenses.

• Net debt reduced to R$27.95–28.0 billion, with leverage at 3.5–3.9x net debt/EBITDA.

• Liquidity at R$10.8 billion, including R$8.1 billion in cash.

• Free cash flow yield at 12.6% LTM, with R$3.2 billion generated.

• Dividends paid in the last 12 months totaled R$1.426 billion, with a 5.7–6.2% yield; new dividend of R$306 million approved.

Outlook and guidance

• CAPEX for 2025 is forecast at R$3.3 billion, with R$1.3 billion already invested by June 30, 2025.

• Market demand for short fiber/hardwood and Fluff expected to remain stable in Q3; coated board and Kraftliner to see seasonal increases.

• Prices for short fiber and Kraftliner may see slight downward trends, while Fluff and Coated Board prices should remain stable.

• No major new investments planned; focus remains on deleveraging and maximizing free cash flow during the 'harvest' period.

• Monte Alegre modernization project expected to complete by end of 2026.