Klabin (KLBN4) Q2 2026 earnings summary

Executive summary

• Net sales revenue for H1 2026 reached R$10.1 billion, slightly down from R$10.11 billion in H1 2025, with domestic market accounting for 66.1% of consolidated net revenue and no single customer exceeding 10% of sales.

• Operational stability and disciplined commercial strategy delivered consistent results despite inflationary pressures and currency headwinds from a stronger Brazilian real against the U.S. dollar.

• Consolidated net income for H1 2026 was R$135.5 million, a significant decrease from R$1.03 billion in H1 2025, reflecting lower operating profit and higher finance costs.

• Adjusted EBITDA for H1 2026 was R$3.63 billion, compared to R$3.9 billion in H1 2025, with EBITDA margin impacted by higher costs and lower biological asset fair value.

• Share buyback program approved in June 2026 for up to 31.25 million units over 18 months, reinforcing commitment to shareholder value.

Financial highlights

• Net revenue: R$5.2 billion in 2Q26, a 2% decrease year-over-year, with adjusted EBITDA of R$2.0 billion and EBITDA margin at 38%.

• Gross profit for H1 2026 was R$2.25 billion, down from R$3.78 billion in H1 2025, mainly due to higher cost of sales and lower fair value of biological assets.

• Net income: R$387 million in 2Q26, a 34% decrease from 2Q25.

• Net cash from operating activities was R$2.9 billion in H1 2026, down from R$3.67 billion in H1 2025.

• Free cash flow: Consumption of R$236 million in 2Q26, mainly due to higher CAPEX and working capital needs.

Outlook and guidance

• Management reaffirmed the 2026 guidance for total investments at R$3.3 billion and cash cost per ton between R$3,200–3,300, with H1 2026 actual cash cost at R$3,280/ton.

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

• No changes to long-term forecasts or investment plans were announced.