Brazil · Delayed Price · Currency is BRL Dexco Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw improved cash generation, margin expansion, and deleveraging, with recurring net revenue up 5.2% YoY and EBITDA growth across divisions. Operational efficiency, asset sales, and disciplined capital allocation supported robust free cash flow and a lower net debt/EBITDA ratio.
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First quarter 2026 saw strong EBITDA and margin growth, improved cash flow, and significant deleveraging. Segment performance was mixed, with wood and metals outperforming, while tiles faced weak demand. Rising input costs and market volatility remain key risks.
Fiscal Year 2025
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Net revenue reached BRL 8.249 million in 2025, with strong wood and LD Celulose performance offsetting weakness in ceramic tiles and metals. Focus remains on deleveraging, cash generation, and portfolio optimization, with expectations for margin recovery in 2026.
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Urgent deleveraging and cost control are driving operational focus, with positive cash flow and healthy wood division margins. Portfolio simplification, efficiency gains, and a transformation plan aim to improve ROIC and reduce leverage, while asset sales and outsourcing remain under review.
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Q2 saw robust EBITDA growth, led by the wood division and LD Celulose, with improved margins and operational efficiency. De-leveraging initiatives, disciplined CapEx, and a positive outlook for wood and tiles support long-term resilience.
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EBITDA reached $611M in Q1 2025, with strong wood and LD Celulose performance, but tiles faced losses due to competition and ramp-up costs. Leverage rose to 3.45x, while capex matched last year and is set to decline. Macroeconomic headwinds and sector competition remain key risks.
Fiscal Year 2024
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Wood and LD Celulose divisions drove strong 2024 results, with record EBITDA and revenue, while metals and sanitary ware recovered. Focus for 2025 is on deleveraging, cash generation, and ramping up new tile operations amid a challenging macroeconomic environment.
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Strong wood division performance and record LD Celulose results drove a 60% year-over-year EBITDA increase, while metals and sanitary ware stabilized and tiles remained pressured. The company is nearing the end of a major investment cycle, focusing on deleveraging and operational optimization.
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Quarterly adjusted EBITDA grew 8% year-over-year, led by strong wood and metals segments, while tiles faced ongoing challenges. CapEx for 2024 is guided at BRL 1.1–1.2 billion, with leverage rising due to investment cycle. Sustainability and ESG initiatives advanced.