Good morning, ladies and gentlemen, and welcome to Eternit's conference call to discuss the results for the second quarter of 2026. This conference is being recorded, and the replay will be available on the company's investor relations website, ri.eternit.com.br. The presentation will be also available for download. We let all the participants know that we are going to start the Q&A session. Further instructions will be provided at the beginning of the Q&A. Before we start it, I would like to reiterate that the forward-looking statements are based on the Eternit's management's belief and assumptions on its information currently available to the company. These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur.
Investors, analysts, and journalists should bear in mind that events related to the macroeconomic environment and other factors may cause actual results to differ materially from those expressed in the respective forward-looking statements. Joining us today, we have Mr. Rodrigo Inácio, CEO, Ms. Carisa Portela Cristal, CFO and IRO, Mr. Saulo Martini, the manager of controllership and RI. I would like to turn the call over to Mr. Rodrigo Inácio, who will begin the presentation. Please go ahead.
Good morning, everyone. It's a pleasure to be here with you in another Eternit earnings call. I would like to thank all investors, analysts, and participants for joining us and for your interest. Turning to slide 3, I will begin by highlighting the main developments of the quarter.
Overall, this was a period in which we made progress in executing our strategy, with growth in our core business and advances in initiatives that we consider important for the company's future. Starting with our core business, we sold 172,000 metric tons of fiber-cement products, up 14% from the same period last year. In industrialized construction, we posted significant growth, with revenue increasing by 50.3%. This is a strategic segment for the company, and the results show that we are on the right path to expand our presence in this market. Our logistic carrier, EliteMov, also continues to gain traction in the quarter. It recorded BRL 7 million in revenue, increasing its contribution to Eternit's results and reinforcing our strategy of diversifying our businesses and creating growth opportunities.
Another important milestone was the opening of our new facility in Hortolândia, bringing the Sustainable Habitat concept to life and bringing our administrative and operation teams together in a single location. More than a physical move, we created an environment that fosters collaboration, values diversity of ideas, and make the way we work more integrated, agile, and efficient. This vision, it's already part of our daily routine and strength, the way that we are building Eternit's future, connected more than ever and ready to reach greater heights.
In addition, we ended the quarter with a net revenue of BRL 293.6 million, up 6.1% from the second quarter of 2025. These results reinforce that we are moving in the direction that we have set for the company and remain focused on executing our strategy and creating long-term value. Moving on to slide 4, I will briefly discuss the macroeconomic environment.
It remains an environment that requires attention, although we are seeing some signs of improvement. Starting with the INCC, which measures construction costs, the index stood at 6.7% in June 2026, down from 7.19% a year earlier. This is a positive development, but costs continue to put pressure on the sector, and we are monitoring this closely. At the same time, although household indebtedness remains high at 81.6%, consumer confidence rose to 88.7 points, its highest level since October 2014, reflecting a more positive perception of the economy. ABRAMAT maintained its 1.9% growth forecast for the sector in 2026 despite a 3.5% decline in inflation-adjusted revenue through June. This points to expectation of a gradual recovery over the coming months. In summary, the environment remains challenging, but there are signs supporting a gradual improvement in the market outlook.
Eternit remains focused on what is within our control, efficiency, execution discipline, and being prepared to seize opportunities as they arise. Turning to slide 5, I would say that this quarter shows once again that Eternit's strategy is moving in the right direction. The first point is the transformation of our portfolio. We continue to increase the share of higher value-added businesses while maintaining focus on what we do best. This strength, the quality of our revenue, leaves the company increasingly well-positioned to deliver consistent growth. In Fiber-cement, our core business, we had a very positive quarter. Revenue grew 25.4%, and volume increased 14%, reflecting strong commercial performance and, above all, growth in our industrialized construction solutions, which increased 50.3% in the period. This shows that we are evolving in step with new market demands. We should also highlight our customer relationship.
EliteMov and the Parceiro Coruja program reinforce our strategy of staying close to the sales channel by providing the channel with greater support services and efficiency. We also get closer to the people who choose our products. This goes beyond logistics or customer service. It is about creating a better experience, providing more support, and building long-term relationships with our customers and partners. When we look at these three points together, we see a strategy being put into practice every day. We are executing with discipline, strengthening our businesses, and building an Eternit that is more efficient, closer to its customers, and prepared to create sustainable value over the long term. Well, I will now turn it over to Carisa Portela Cristal, who will provide further details on our key financial indicators.
Good morning, everyone, and thank you, Rodrigo.
Moving to slide 6, I will begin with our overall performance for the quarter, which shows an important market recovery and an improvement in our growth margin compared with the first quarter of this year, together with efficient expense management. These factors make a significant contribution to a positive outlook for our full year results in line with our long-term strategy. Turning on our core business, Fiber-cement, delivered consistent performance in this quarter. Sales volume reached 172,000 metric tons, as previously mentioned, up 14% from the second quarter of last year. Fiber-cement remains Eternit's main growth driver. We posted solid volume growth while continuing to strengthen higher value-added businesses and contribute to increasingly consistent growth. Moving on to slide 7 and looking at revenue, the chart on the left shows BRL 196.3 million in roofing products, representing growth of 23.6% compared with the second quarter of 2025.
This result mainly reflects higher sales volumes and improved sale mix and strong margins for roofing products as a result of price adjustments. Turning now to industrialized construction, as Rodrigo already mentioned at the beginning of this presentation, the net revenue reached BRL 16.7 million in the second quarter of 2026, a significant increase around 50.3% from the BRL 11 million recorded on the same period last year. The gross margin of the consolidated Fiber-cement segment improved by 6 percentage points compared with the second quarter of 2025, reaching 19.8% in the second quarter of 2026. This performance reinforces our confidence in the potential of the segment. We are expanding our presence in higher value-added solutions and building an increasingly diversified Eternit ready to capture new growth opportunities. Moving on to slide 8, I will focus on the chrysotile mineral.
This slide shows monthly sales volumes confirming the positive sales trend in the context of a new market dynamic that has been reshaping the timing of shipments throughout the year. As shown in the chart, we saw significant recovery throughout the second quarter of 2026, reaching approximately 15,000 metric tons per month in May and June. This performance resulted in the second quarter volume growth of 59.2% compared with the first quarter of this year, confirming a recovery of the pace of shipments. Compared with the second quarter of 2025, however, the volume declined 20.7% due to the impact seen in April. Looking now at the chart on the right, we show the average price trend for the chrysotile mineral, which is entirely exported and priced in US dollars.
It's important to note that the average price in US dollars remained stable quarter-over-quarter, increased 2.5% when comparing the first half of 2026 with the same period of 2025. Due to the appreciation of the Brazilian real against the US dollar, the average price in reais declined both quarter-over-quarter and on a half-year basis, reflecting the exchange rate movement, and the FX effect reduced around BRL 10.5 million the chrysotile revenue compared in the second quarter of 2025. Moving on to the slide 9. Let us now look at the main consolidating indicators for the second quarter of 2026. The net revenue grew a significant 6.1% in the quarter, reaching BRL 293.6 million.
This result was mainly driven by Fiber-cement performance, together with the greater contribution from EliteMov, which continues to increase its share of the company's results, while chrysotile, as previously mentioned, remains on a volume recovery trajectory. In Fiber-cement, this positive performance in the quarter, which increased its contribution to consolidated results, was driven by revenue growth and expansion of higher value-added industrialized construction solutions. The different contribution of each business segment in this quarter, together with the FX-impacted consolidated growth profit, which totaled BRL 53.9 million in the quarter. As well, the net income, which ended the quarter in BRL 13.6 million. In the chart on the right, the orange dotted line shows an approximately BRL 7 million decline in net income due to the negative FX effect I mentioned.
The fundamentals of our business remain solid, and we continue to make progress in our strategic segments, particularly fiber-c ement and industrialized construction. Moving now to slide 10, let us discuss the evolution of our recurring EBITDA. This quarter, we ended the recurring EBITDA in BRL 22.4 million. Looking at this composition of this result, it's clear that the initiatives being implemented by the company continued to have a positive impact. As previously mentioned, Fiber-cement has been the main driver of results, supported by volume growth and improved sales mix and expansion of industrialized construction. I also highlight that we maintain discipline in expense management, which remain an important pillar to our strategy and helps preserve operational efficiency. On the other hand, as previously discussed, developments in the chrysotile segment and the FX effect weighted on its contribution to EBITDA.
Even so, the combination of Fiber-cement performance, EliteMov, and disciplined cost management demonstrates the company's resilience and strength. To conclude my presentation on slide 12, I would like to comment on the evolution of our capital structure. We ended the second quarter of 2026 with a net debt of BRL 161.2 million and a net debt to LTM recurring EBITDA ratio in 2.99x . The increase in leverage mainly reflects the lower EBITDA and the higher working capital consumption in the chrysotile operation due to increase of inventories and longer shipment timelines. This is predominantly a temporary market-driving movement, which we expect to normalize as shipments are completed and inventories return to levels more in line with our level of activity. One point I always like to highlight is that none of our debt is subject to finance covenants.
This give us greater flexibility to manage our capital structure and make decisions with a long-term view without financial restriction that could limit the execution of our strategy. We also continue to have a competitive average cost of debt of approximately 11.04% per year, representing a real cost of close to 6% per year when accumulated inflation is taken into account. This reflects the discipline we maintain in financial management and capital allocation. In a macroeconomic environment that continues to require considerable discipline, we maintain a solid financial structure, sufficient liquidity to support operation, and the flexibility to continue executing our growth strategy. With that, I conclude my presentation and hand it back to Rodrigo for his closing remarks.
Thank you, Carisa. To conclude our presentation, I would like to share our perspective on value creation and Eternit next steps. Over the few quarters, we have evolved our portfolio.
We focus on business offering greater added value, profitability, and growth potential. Fiber-cement remains the company's main pillar, with Industrialized Construction standing out. In addition, EliteMov carrier continues to gain scale, increasing its contribution to our results. As mentioned at the beginning of this presentation, this movement is complemented by the Sustainable Habitat project, which includes the relocation of our headquarters to Hortolândia and reinforces our strategy of integration, operational efficiency, and innovation. At the same time, we continue to make progress in operational efficiency, cost management, and discipline capital allocation, strengthening our cash generation capacity and preparing the company for increasingly consistent growth. I would also like to highlight the publication of our 2025 sustainability report, which demonstrates how we are integrating growth, innovation, and responsibility into our strategy.
Among the highlights, we made progress on our ESG agenda, strengthened our people development and diversity initiatives, and published an unprecedented study of Fiber-cement's natural ability to capture CO2 throughout its service life throughout carbonation. I invite everyone to read the full report available on our investor relations website. We remain focused on executing our strategy with discipline, consolidating our growth opportunities, and creating sustainable value for all our stakeholders. We are building an Eternit that is increasingly strong, competitive, and prepared for the future. After all, Eternit is present in millions of Brazilians. It's on the floor, on the walls, and on the roof. Thank you so much for your attention. This concludes our presentation, and we are now available to take your questions. I will now hand it over to the operator, who will continue with the Q&A session.
Thank you.
We will now begin the Q&A session. Please identify yourselves and submit all your questions at once, then wait for the company's response. Remember that to ask a question, simply enter it in the call chat.
Good morning, you all. We're going to start our Q&A session. Remember that to ask any kind of question, just send it through the Q&A button on your computer screen. The first question is related to the growth of the industrialized construction. The investor is asking if it's aligned with the company expectation. I will give the floor to Carisa, our CFO.
Thank you. Good morning. Thank you for the question. The company has been developing the industrialized construction for some years. We have noticed that we have a strong trend on the growth in the sector inside Brazil.
This sector has been growing a lot, and it's part today of a structured transformation of the industry as a whole. Looking especially inside home, we see that we have a strong growth inside of our industrialized construction vector. The sales grew 50% from the last year against this year, as we demonstrated. We see that the main trigger that pushed this growth are mostly the scarcity of the qualified work labor that we have on the traditional construction, the gain of productivity that industrialized construction could give to this market as standardization, automation, beyond the reduction of the due dates of the constructions, as we have been seeing. Something that I think it's worth mentioning, it's the sustainability that this kind of process will bring.
We have a clean construction, less movementation of the materials throughout the construction site, and we have noticed that even the cement sheets and the drywalls that are our core business is being a very important part, and that's been growing on industrialized construction, those that grow more in the industrialized construction. Recently, we had a study from FGV saying that industrialized construction today in the country is present in around 14% of the constructions. What showed to us clearly that this is room for growth. So we still have a lot to grow. We have a lot to move forward. Answering your question, we still have room to grow. This study mentioned as well that today, one of the material that grew more is the cement material that used 18% usage, are reaching 34% of usage.
The company is in the right place at the right time, and actually, this is a front that we still have a lot of room to grow. We are at the beginning of our stage on industrialized construction in our country as a whole. This is a moment to leverage, where we are going to have room to grow, and our expectation is that this business front will grow higher than the GDP in the next years.
Thank you so much, Carisa. Moving forward with the questions. The investor is asking: What is the expectation of the company with the carrier company, EliteMov? Now I am going to give the floor to Eder Campos, please.
Good morning, all. Thank you for your question. I think that EliteMov is an initiative that was important and well succeeded until now.
Thinking mostly in the space that we need to occupy to make our customer experience easier. On the logistic, it is a value leverage that is really important. It is a pain for our customers in this journey. When we idealize the EliteMov, it is to serve our customers better, and obviously to generate value in this operation on the logistic. The carrier is capturing some part of this value as we can serve more agile service, more adequate and economically feasible, and we have been growing very positively. All our factories, all our plants already have an operation of this carrier implemented, and we can have some good results as showed by Carisa and Rodrigo that are really healthy. Why?
Because I think it helps the outcome, not just the business view, as you provide the logistic and the billing, as the financial and economic outcome for the company, generating value and becoming a more sustainable business. We hope that we are on the right path. We still have a lot to move forward, and we have to move forward to get more mature and still have room to occupy with this operation. Let us move forward working to serve better our customers.
Thank you, Eder. Actually, with his shirt with our logo from EliteMov. One more question. The investor is asking, and congratulate by the results, and it asks for more details related to the cash flow. He is asking for expectation to bring the net debt for a smaller parameters. This is for Carisa.
Looking at the debt profile, recently, we had a growth of the debt of the company with the predominance of a short-term instrument. Here, just to provide some context, I will talk a little bit about our characteristics. We have, yes, a concentration of short-term instruments, that it is our debt profile, that it is related to the chrysotile service that is dedicated to export. On exports, we have the ACC and ACE that allow you to anticipate the receivables that will go to 30 days in a more immediate moment that you execute the sales. With very attractive rates, with 7%-8% a year. This year, we already block the trade on the order or when we are shipping, just to avoid the FX effect.
This is concentrated on the short term and show us the possibility to have a lower cost of the debt and more predictability. Especially in this last quarter, we had a little bit of pressure of the cash flow that was demanded due to the storage on the chrysotile and the times for the shipment. As I mentioned in the presentation, this is something that is super important, that should be regulated as the shipments will be adequate to the new dynamic of the market, and then the inventory will be in usual standards. Our strategy of finance is focused on the immediate liquidity and flexibility to the operation.
Thank you, Carisa Portela Cristal. We have one more question from another investor. The question is the floor segment growth, and how the company justify this, and we could expect that on the next months?
Okay, thank you. Yes.
Here we are with our. We are so proud of our projects, our initiatives, and everyone raised the flag. To raise the flag, this culture is this answer. Today we are here planting, here for a year, moving forward the work that has been developed, and we restructured the view of our regional team. The secret of our success is in people. We are investing and keep investing on engaged team present, that it makes us the leader of the pulverization. We have a very healthy capitalization, and we do not live off sales orders. We live from the relationships, and our relationship is getting stronger, and we are able to harvest and start harvest good outcomes from fiber-cement, from our strategy to have actually a business unit that will be selling more and better to sell always. That is our motto here.
We have been able to doing that, so the restructure of the regionals here, that is in progress. We having a better capillarity with the sales team, making our customer to follow, to be supported, served, and having this loyalty from the sales point of our thousand of our PDVs that are positive every month. With that, we can have a volume that the industry needed. We have a room as a market leader, and the six factories that we have, we need to occupy in this market with respecting, with the market, understanding the market dynamic, and giving competitivity with our customer because there is no way to do a sales without taking care of this customer to be able to resale, to turn this storage, because this will ensure the health market. We have been acquiring good outcomes, and the second quarter was good.
We are moving forward positively with the strategy to occupy the regions. Brazil is so big, each region with their context, respecting the market engagement of our team, that is the base of our outcome, and the relationship with our customers. We are moving forward and very anxious to have the room that we need of the fiber-cement segment.
Thank you, Eder Campos. I would like to remember once more that to insert a question on the chat, you just need to press the Q&A button, and we are going to answer it. One more question for the investor is asking if the company have been talking about efficiency and cost control, but what are the actions that the company is taking? Once again, I will send the question for Carisa to answer. Thank you.
I think it is important to mention that inside of our strategy from Eternit, we have our pillars that we call Eternit's pillars, and one of them is trying to get financial discipline and operational efficiency. In this pillar, we work strongly with two fronts. One is a management, and one for optimization. On the management front, we work with the austerity to apply the resources the company always gave the governance, always trying to find efficient that could give some operational gains. Some practice effects. We migrate recently for SAP S/4HANA that brings more efficiency, modernity, that will bring concentration and parameterization of all our processes. The creation of the CSC that will be in Hortolândia, already born in Hortolândia, that is one more way to standardization and optimization.
That beyond to enable the company to gain scale and productivity, we have been doing throughout the years the simplification of our partner structures. We are aiming to be a lean and more efficient company. Obviously, in this movement, we have our recent finalization to change to our own headquarter in Hortolândia, as Rodrigo mentioned, that is aligned with our business belief that to be closer to the operation, that beyond to have a synergy with our plant to bring more cost optimization. Out of that, we have the second front. There is an optimization as a whole, where we are aiming to find some tax opportunities that can maximize the cash flow, so we are always aware.
Out of that, we have been doing a movement to clean and to sell non-operational assets that are inside the company but can generate some cash and it is not working as an operation anymore. Thank you.
Thank you, Carisa. Okay, let us wait. We have one more question from an investor. He would like to know what the strategy of the management to improve the customer satisfaction as the customer control. I am going to send to Eder to make the comments.
Wow. The customer satisfaction is really important. The first step that we gave was to establish a way to give voice to this customer. So established that our customer, since last year, we measure the B2B customer, so our retail. With the implementation of the NPS, we have one more channel because we are already monitoring by the customer success when he is rebuying on our direct channel.
But we created an additional one to capture this perception that is our retail, but the consumer, the customer of our customer, the end customer that will receive our product throughout our customers, has a perception that we need to monitor as well. Eternit is a very valuable brand, more than 86 years, that we started to monitor the perception of this brand within the final customers, and to understand the attributes. We have been working continuously to act on the educational process of the floor segment first, because the fiber-cement flooring is the best one. It has a history, and sometimes the people needs to be educated in a way to install it. We are working with a demographic shift of this workforce, and sometimes they do not have any training. We are investing.
We are giving some practical training throughout our channel of 1,000 of flooring experts, reinforce our technical, that we understand that is really important. We understand this listening the customer voice and understanding actually the things that we have as a complaint. We have a customer service that it is our customer service, it is to solve the customer problem, giving a very agile answer. We move forward a lot on this metric to act on our direct channel. This sales service, customer service, shows that the challenge is to use correctly the material, the installation. To have this well installed, it will last a lot longer. We see it, Brazil, throughout Brazil, how many people has the coverage for several years with our solution. It is a product, the cement base is just getting better if you install well. The challenge is to install it correctly.
When we have this technical promotion, we understand the success and the satisfaction of the customers with our product, will depend on this good installation, and we recognize that our position in the market for the flooring market, it is the best solution. About the industrialized construction customer, Carisa did a very good comment about how we face this new market, and we have been taking care of, because we have different channels, and we have been taking care of the technical development to use this product that has a growth demand. Here, the Brazilian installers have been discovering how to use these new methods, and we are the supplier to support and to generate the housing and the flooring with a lot of productivity for all Brazilians.
Thank you, Eder. Let us move forward with our Q&A session. We are waiting that we get more questions now.
Well, remember once again, for you to ask a question, you just have to press the Q&A button, and we are going to answer it. Well, remember that I will mention that we can answer more questions through our website on the session talk with RI, and we are going to close our session. I am going to send the floor to the operator again. Thank you so much and have a great day.
Thank you. As we do not have any further question, the Eternit conference is closing. We thank you for all your participation. Have a great day.