Klabin (KLBN4) Q2 2026 earnings summary

Executive summary

• Achieved strong operational performance and disciplined cost management in Q2 2026, with adjusted EBITDA reaching R$2.0 billion and net revenue at R$5.2 billion, despite inflationary and currency headwinds.

• Gained market share in long fiber products, maintained leadership in premium segments, and advanced sustainability initiatives, including compliance with EU Deforestation-Free Products Regulation.

• Continued ramp-up of Machine 28 and operational efficiency initiatives supported growth in coated board and kraftliner volumes.

• Share buyback program for up to 31.25 million units was announced and partially executed, reflecting confidence in fundamentals and commitment to shareholder value.

• Net income for Q2 2026 was R$387 million, a 34% decrease year-over-year, reflecting higher costs and currency effects.

Financial highlights

• Quarterly sales volumes reached 1.18 million metric tons, stable year-over-year.

• Net revenue was R$5.2 billion in Q2 2026, down 2% year-over-year, mainly due to currency effects.

• Adjusted EBITDA was R$2.0 billion, with a margin of 38%, supported by cost discipline and operational efficiency.

• Total cash cost per metric ton was R$3,204, stable year-over-year.

• Free cash flow for the last twelve months was R$700 million, with a consumption of R$236 million in Q2 2026 due to higher CAPEX and working capital needs.

• Net debt at quarter-end was R$24 billion, with net debt to adjusted EBITDA ratio at 3.2x, improved from 3.9x a year ago.

• Liquidity stood at R$12.7 billion, with R$10.1 billion in cash and the rest in undrawn credit lines.

• Dividend yield was 5.3% over the last 12 months, with R$1.18 billion paid.

Outlook and guidance

• No major investments planned for the next five years; focus on free cash flow generation and shareholder returns.

• Formal guidance for total cash cost per metric ton, including maintenance stoppages, reaffirmed at R$3,200–3,300 for 2026.

• CAPEX guidance for 2026 is R$3.3 billion, with allocations to silviculture, operational continuity, special projects, and Monte Alegre modernization.

• Expect continued strong performance in long fiber and premium coated board segments, with positive trends in packaging and corrugated boxes.

• Cost discipline and operational efficiency expected to sustain margins despite external pressures.