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.

• Consistent operational execution and volume growth from new machines, with price increases in paper and packaging.

• Strategic focus on maximizing free cash generation, disciplined capital allocation, and maintaining a strong domestic and export market presence.

• Sustainability leadership reaffirmed with a Triple A CDP rating and continued inclusion in Dow Jones Sustainability Indices.

Financial highlights

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

• Adjusted EBITDA for Q4 2025 was R$1.83 billion with a 35% margin, stable year-over-year.

• Full-year 2025 net revenue reached R$20.968 billion, up 7% from 2024; adjusted EBITDA was R$8.008 billion, up 7% with a 38% margin.

• Free cash flow for 2025 was R$715 million; adjusted free cash flow over 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, and R$1.1 billion plus R$800 million in bonus shares announced for 2025.

Outlook and guidance

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

• Cost guidance for 2026 reflects normalization of fiber costs and continued focus on cost stability for the fourth consecutive year.

• No M&A activity planned; focus remains on organic growth, cash generation, and leveraging existing capacity.

• 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.