Klabin (KLBN4) Q2 2025 earnings summary

Executive summary

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

• Net revenue reached R$5.3 billion in 2Q25, up 6% year-over-year, with adjusted EBITDA of R$2.0 billion, stable versus 2Q24, and net income up 86% to R$585 million.

• Free cash flow yield improved to 12.6% LTM, with R$3.2 billion generated and dividend yield at 5.7%–6.2% LTM.

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

• Robust liquidity and extended debt profile support resilience in uncertain macroeconomic conditions.

Financial highlights

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

• Adjusted EBITDA for 2Q25 was R$2.041 billion, with a margin of 39%, nearly flat year-over-year.

• Net income for 2Q25 was R$585 million, up 86% year-over-year.

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

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

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

• Dividends paid in the last 12 months totaled R$1.426 billion, with a new dividend of R$306 million approved.

Outlook and guidance

• Market demand for short fiber/hardwood and Fluff expected to remain stable in Q3, with positive momentum for coated board and neutral trends for kraftliner and corrugated boxes.

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

• CAPEX guidance for 2025 maintained at R$3.3 billion, with no major new investments planned; focus remains on deleveraging and maximizing free cash flow.

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