Klabin (KLBN4) Q4 2025 earnings summary

Executive summary

• Achieved full production capacity in virgin fibers and packaging, with strong operational recovery in H2 2025 and positive momentum into January 2026.

• 4Q25 performance marked by operational stability, steady sales volumes, and BRL appreciation despite scheduled maintenance shutdowns.

• Full-year 2025 saw consistent operational execution, volume growth from new machines, and price increases in paper and packaging.

• Adjusted EBITDA reached R$1.83 billion in 4Q25 and R$7.85 billion in 2025, up 7% year-over-year, driven by higher sales volumes and price increases in packaging and paper segments.

• Strategic focus remains on maximizing free cash generation, disciplined capital allocation, and leveraging operational efficiency rather than pursuing M&A.

Financial highlights

• Q4 2025 net revenue was R$5.2 billion, down 2% year-on-year due to currency appreciation and pulp price pressure.

• 2025 net revenue grew 7% to R$20.968 billion; adjusted EBITDA rose 7% to R$7.85 billion, with a 38% margin.

• Free cash flow for 2025 was R$715 million; adjusted free cash flow for the last twelve months was R$3.038 billion (11.8% yield).

• Dividend yield for 2025 was 5.3%, with R$1.215 billion paid in dividends and interest on capital.

• Net income for 2025 was R$1.68 billion, down 18% year-over-year.

Outlook and guidance

• Positive expectations for 2026, with anticipated increases in paper production, sustained market share, and price recovery across most markets.

• Cost normalization expected in 2026 after weather-related impacts in 2025, with ongoing initiatives to maintain cash cost stability for the fourth consecutive year.

• No M&A activity planned; focus remains on organic growth, operational efficiency, and capital discipline.

• No major maintenance stoppages planned for Ortigueira and Correia Pinto units in 2026.

• CAPEX and cash cost guidance for 2025 achieved; future investment guidance maintained.