Klabin S.A.

Klabin reported 2Q26 sales volumes of 1.18 million metric tons, net revenue of BRL 5.2 billion, and EBITDA of BRL 2 billion, with an EBITDA margin of around 38%. Net revenue was said to be in line with 2Q25, while volumes were virtually in line with the prior-year quarter. Total cash cost per metric ton was BRL 3,204, unchanged from the same period last year. Net debt was BRL 24 billion and leverage was 3.2x net debt/adjusted EBITDA in dollars, down 0.7x versus 2Q25. Liquidity ended at BRL 12.7 billion, including BRL 10.1 billion in cash, and average debt maturity was 84 months at an average dollar cost of 5.1% per year. Over the last 12 months, free cash flow was BRL 700 million and shareholder distributions totaled BRL 1.18 billion, including a dividend yield of 5.3%. Management did not provide a formal next-quarter or full-year numeric revenue/EBITDA guide, but said 3Q should see continued pressure in short fiber, a positive setup in fluff and kraftliner, and price recovery in kraftliner. They also said they expect no major CapEx for the next five years and more free cash flow generation ahead.

Cristiano Teixeira framed the quarter as one of strong operational execution, saying planning and the company’s management model produced an “extraordinary performance” despite a difficult market. He emphasized Klabin’s long-fiber strategy, the premium position of fluff and kraftliner, and continued gains in market share in products such as milk, beer, hygiene, and beauty. His tone was confident and strategic, with repeated comments that the company is entering a period of flexibility, better mix, and stronger cash generation.

Gabriela Woge highlighted the quarter’s financial stability: BRL 5.2 billion in revenue, BRL 2 billion in EBITDA, and an around 38% margin, supported by cost discipline. She noted total cash cost per ton of BRL 3,204, no change versus last year, and said variable-cost initiatives offset inflationary pressures from inputs, shipping, and fiber costs. She also pointed to BRL 24 billion of net debt, 3.2x leverage, BRL 12.7 billion of liquidity, BRL 700 million of trailing-12-month free cash flow, BRL 1.18 billion in distributions, and 13% execution of the buyback program, or around BRL 70 million.

Analysts focused on cost sustainability, pulp price realization, short-fiber demand, and capital allocation. Management said cost outperformance came from plant efficiency, variable-cost reductions, logistics discipline, and procurement actions, while acknowledging ongoing pressure from fuel, chemicals, geopolitical logistics issues, and El Niño preparations. On pulp, Nicolini said short-fiber demand in China remains weak but volumes improved after June and July price corrections, while fluff remains strong and long-fiber supply should tighten further as 1.2 million tons of capacity closures and temporary downtime are felt more in 4Q26. On capital allocation, management said there is no plan for major transformational CapEx in the next five years, so free cash flow, debt reduction, and buybacks are the main uses of cash.