Klabin (KLBN4) Q4 2025 earnings summary

Executive summary

• Achieved 5% net revenue growth to R$20.7 billion and 7% increase in adjusted EBITDA to R$7.8 billion, with a 38% margin year-over-year, driven by higher sales volumes, price improvements, and currency effects.

• Operational efficiency and cost-reduction initiatives offset inflationary and operational pressures, with total cash cost per ton for 2025 at R$3,225, within guidance.

• Net income declined 18% to R$1.68 billion, mainly due to higher costs and increased finance expenses.

• Distributed R$1.2 billion in dividends (5.3% yield) and approved R$1.1 billion in interim dividends for 2026.

• Strengthened ESG leadership, maintaining top scores in CDP, Dow Jones, and other sustainability indices.

Financial highlights

• Net revenue: R$20.7 billion (+5% YoY); Adjusted EBITDA: R$7.8 billion (+7% YoY); EBITDA margin: 38% (+1 p.p.).

• Net income: R$1.68 billion (-18% YoY); Net debt: R$25.9 billion; Net Debt/EBITDA (USD): 3.3x (down from 3.9x).

• Free cash flow for 2025 was R$715 million; adjusted free cash flow over the last twelve months was R$2.1 billion (9.2% yield).

• Dividend yield for 2025 was 5.3%, with R$1,215 million paid in dividends and interest on capital.

• CAPEX for 2025 totaled R$2.8 billion, a 15% reduction from 2024, in line with guidance.

Outlook and guidance

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

• 2026 CAPEX guidance: R$3.3 billion; cash cost per tonne expected between R$3,200–3,300.

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

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

• Focus remains on operational efficiency, disciplined capital allocation, and sustainable value creation.