Good morning, ladies and gentlemen. Welcome to the Eternit teleconference for the discussion of the results related to the year of 2025. This conference is being recorded and the replay can be found on the internal website for the company, ri.eternit.com.br. This presentation will also be available for download. We inform all participants that after the presentation, we are going to start the Q&A session. More instructions will be provided at the beginning of the session. Before we continue, I would like to stress that all prospect declarations are based on beliefs and assumptions from Eternit's administration and the current information available to the company. These declarations can involve risks and uncertainties, seeing as they are talking about future events, therefore, depend on circumstances that may or may not occur.
Investors, analysts, and journalists should consider that events related to the macroeconomic environment, the segment, and other factors may make the results be materially different than those that were expressed in the prospect declarations provided. Here with us today, we have Mr. Rodrigo Inácio, CEO, and Carisa Portela Cristal, CFO and IRO. I would like to go over to Mr. Rodrigo Inácio, who's going to start the presentation. Please, Mr. Rodrigo, go ahead.
Good morning, everyone, and thank you for being here once again following our 2025 results conference. I would like to start by bringing a quick overview of our agenda throughout the year. In 2025, we advanced in an important transformation for Eternit. Our main focus was strengthening industrialized construction, broadening solutions that can bring more productivity, less waste, and more predictability to our customers.
This movement actually started a clear repositioning of the company and has strengthened our commitment to the future of the sector. We also evolved in governance and efficiency. We've had, for example, the consolidation of the Caucaia site, the adoption of SAP S/4HANA, and the creation of the shared services CSC. These are initiatives that integrate processes and bring corporate closer to operation and prepare the company to grow with more agility. Thinking about ESG and its agenda, we've had relevant advances as well. We worked with fiber cement with our products, bringing visibility to a real environmental contribution. We've also strengthened our social agenda with an important program, Eternit por Elas, thinking about women and female protagonism in the company.
This industrialization, social, ESG, diversity, and focus on results was what created the base for the future of Eternit, a more modern, more integrated company that is prepared for a sector that is in full transformation. Throughout this presentation, I'm going to show how this vision is already being translated into our operations, financial indicators, and the strategic initiatives that are going to strengthen our positioning in the market. We can move on to the next slide. On slide four, this is a slide where we have a very full overview to show the strength of our portfolio. I've organized it in this way. On the top of the slide, we have operational data, and at the bottom, financial data. I'll start with fiber cement products that are still a very important pillar in our portfolio.
Here, I am able to consolidate the product lines for fiber cement, which are roof tiles and industrialized construction. In 2025, we reached 672,000 tons, and that is a growth of 2.3%. Even in a challenging scenario, this product is still contributing in a very consistent way towards the development of the company, and the biggest contribution for industrialized construction became more and more relevant. Going over to chrysotile, we also had a positive development. We have got to 169,000 tons, 1.2% above compared to 2024. We can see what that contributed to net revenue. So BRL 772 million came from fiber cement, and BRL 52 million come from industrialized construction in terms of net revenue. BRL 373 million come from chrysotile.
In the case of chrysotile, the main challenge was the mix and the price of the products, other than exchange rates that have pressed the margins for the quarter and the year. Even with a solid volume, the exchange impacts reduce profitability. In fiber cement, we had the opposite movement. A more qualified mix considered by industrialized construction brought a lot of margin gain, and that contributed to our raw numbers, and that is 12 percentage points. For chrysotile, even though we have had challenges, that contributed with BRL 141 million, reaching a growth margin of 38%. To summarize, this really shows the resilience of our business in advancing the lines with more added value and the capacity of the company to continue to deliver operational growth even in more challenging scenarios. On slide five, I will show you more of a financial overview, consolidating the results for 2025.
Carisa is going to go deeper into each indicator next, but first, I would like to talk about some movements that talk about the evolution of the company throughout the year. We finished 2025 with a net profit of BRL 49 million. This is 26 percentage points higher than 2024. We also reached BRL 113 million in EBITDA. This is a 21% growth compared to the previous year. Another important pillar was net revenue, which reached BRL 1.2 billion. For the fiber cement segment, which is our core business, that was 77% of the total revenue, showing consistency and relevancy in the portfolio. We finished the year in BRL 237 million in gross profit with 21% margin.
The negative variation shows a mix of unfavorable products and the exchange rates that really pressed the margins and ended up neutralizing part of the operational gains that we were able to have in the domestic market. This development administration approved the distribution of dividends related to 2025, and that is BRL 10.5 million to be distributed. Next slide. Here on slide six, I would like to talk a little bit about the macroeconomic background that influenced the sector in 2025. It is important because all of this is directly related to a dynamic of demands for our products. Starting on the graph on the left that shows the general revenues of Abramat with the deflation. Even with a reaction at the end of the year, the construction material sector ended up closing 2025 with a small drop.
There is recovery, but it is still very slow and highly dependent on credit and of a constant improvement of internal demand. For 2026, Abramat is already projecting a growth of 1.9%. The expectation is to have a more favorable scenario this year. Below that, I have some other indicators that are going to help to explain this behavior. Higher debt in families, non-paying Brazilians, and the consumer confidence index, that is around 88 percentage points on average this year. All of these factors are very, very important for our results. With companies and more debt and consumer confidence and trust really oscillating, this does not make people want to invest in their homes and do big projects. This is something that the material sector is going to feel right away.
On the graph on the right-hand side, there is something that also impacted the sector, which is labor. According to the FGV research, 82% of the companies had challenges finding labor in 2025. This is very, very high. It is not only heavy construction, but around 70% of companies in specialized service, such as installations and repairs, are also showing challenges. This movement shows a known trajectory, very high scarcity in the beginning when there was a boom in construction, and then a drop during the crisis and lower levels during the pandemic. From 2022, a new increase that brought us to the 2025 stage. It does make sense because we had a lot of interest in 2024, a lot of global uncertainty, and this brought a lot of caution to the economy.
This delayed construction, reduced investments, and are constantly pressing operational costs all over the entire chain. To summarize, 2025 was a year that had smaller demand. It was more restrict and costs were also with a lot of pressure because of the lack of qualified labor. This definitely shows the importance of operational efficiency and the way that we have been structuring our portfolio. Now I am going to go over to Carisa so she can show the main financial indicators.
Good morning, everyone, and thank you, Rodrigo. I will start on slide seven. On this slide, I have two important indicators for our strategy in 2025. On the left-hand side, we have a net profit that is growing 26%, reaching around BRL 49 million. This result shows that we are in fact on the right track.
We are prioritizing a healthier product mix, and we have discontinued businesses that were not bringing the appropriate returns for the company, now directing our efforts to operations that have higher value potential. On the right-hand side, we have recurrent EBITDA. We have shown a drop of 16.6%, finishing 2025 at BRL 71 million. Recurrent EBITDA is the one that removes small things like recognition of credit that was showed in 2025, revenue related to the discontinuation of units, and also impairment adjustments.
Also, in 2024, the main adjustments were provisions for low storage and immobilized assets, all related to the photovoltaic line. The reduction of BRL 14 million in EBITDA was actually influenced by a lot of dynamics in our main segments. In the fiber cement business, we were able to maintain the positive contribution of BRL 5 million rise, whereas in chrysotile, we had a retraction of BRL 27 million.
This retraction basically comes from the exchange pressure that we have been under and the mix of products for chrysotile and pricing that was not favorable throughout the year. On the other hand, for EBITDA CVM, we can see a growth of 26.6%, reaching BRL 113 million in 2025, as Rodrigo has already shown before. This indicator incorporates these non-recurrent events that I have said. A lot of them related to strategic decisions that we have made to be able to strengthen our portfolio and prepare the company for a new growth cycle. A recurring step for the company is still not showing the entire transformation that is ongoing, but it is important to highlight that we have had important adjustments and we have made difficult decisions. We are building a more solid foundation to be able to capture the profitability in the most sustainable way.
The focus now is to continue improving our product mix, strengthening our main operations, and also accelerating the delivery of consistent results. Now onto slide eight. On this slide, we can see the evolution of our net revenue. On the left side, you can see behavior year-on-year. We finished 2025 with BRL 1.150 billion of revenue. This is a growth of 0.6%. This growth shows the resilience of our portfolio in a very, very challenging scenario. On the right-hand side, we have a breakdown of our revenue for segments. Here we can see that there is an important movement, which is the advancement of industrialized construction that we have been talking about throughout this time.
Within fiber cement, industrialized construction has been gaining strength, and this is already a strategic focus of the company, and it went from 4% in 2024, sorry, to 5% in the total mix for 2025. Currently, this business represents 7% of the revenue of fiber cement itself, but in the consolidated revenue it is 5%. I like to highlight this topic because this is a pillar related to the growth of the company that shows superior margins and that strengthens our strategy of capturing value through solutions of more complexity and return. The advancement that is so gradual in this year shows that we are guiding our portfolio towards where we want to be in the future. I am going to soon talk about the other financial indicators going to gross profit and the other elements that are going to be a part of the financial results of the company.
Slide nine. On slide nine, I am going to show you the composition of gross profit that went from BRL 258 million in 2024 to BRL 237 million in 2025 with a reduction of 8%. When we look at gross profit per segment, we see that there is a positive development in the fiber cement segment. The growth in this area grew 5.7% and reached 12.3%. Our chrysotile segment showed a drop in 16.1% in net profit and margin reduced 6 percentage points. This is impacted by exchange rate variables and also the mix of products and not favorable prices like we have mentioned. The transformation of the product mix is ongoing, especially in the fiber cement segment.
The contribution of fiber cement to gross profit is advancing, as you can see in this chart. The company is always trying to increase the participation of the fiber cement business through the industrialized construction business. Fiber cement is a portfolio that is increasing the mix, focusing on delivering more profitability. Even in a challenging environment, the company showed strength to go through the cycle, as we have been saying, preserving volume, maintaining the necessary foundation to be able to capture value once the scenario is normalized. We are doing what has to be done so that the mix can continue to evolve in the right direction. Next slide, please. On slide 10, we are going to talk about our expenditures.
As you can see in the graph, the total went from BRL 222 million in 2024 to BRL 176 million in 2025, which is a reduction of 21%. This drop is influenced a lot by extraordinary expenses that we have had with tax opportunities, but it is also showing the control and rationalization movement of our expenditures. Even a year that is really full of changes and structural changes, we were able to have that. The revenue that is in 2025 is mainly coming from the acknowledgment of tax credits, ICMS, PIS/COFINS, and this has already been published throughout the year. The reversion of provisions related to discontinued operations of concrete roof tiles. This is also in terms of some real estate sales and things like that.
In 2024, this group had been pressured by expenses that were related to the discontinuation of the photovoltaic business. Expenditures in 2025 are BRL 114.5 million, and this is an advancement that is small compared to the previous year. This came specifically from variable expenditures. At the same time, they were able to get reductions in shipping, marketing, and other services. For general and administrative expenses, we got to BRL 97.1 million in 2025 and compared to 92%. So it is an increase around 5%. This is related to payment of employees, company restructuring, and seniorizing our key positions. Also, spending on contract workers and legal expenses. When we adjust this with inflation, the real increase was around 1%, which really shows our discipline in cost management. To summarize, the year of 2025 was a year of active management. We have controlled expenditures where we needed to.
We invested where it made sense. We have captured opportunities that were very relevant for the company. Now moving on to slide 11, I am going to show you the evolution of our financial results. As you can see in this graph, we had a retraction of the net margins. So that went from BRL 18 million in 2024 to BRL 15 million in 2025. This is a drop of 17% year-on-year. This evolution mainly happened due to non-recurrent factors, which were updates in tax credits that were temporary, especially PIS/COFINS and ICMS. This is something that we have been highlighting throughout the previous quarters, and that has helped to mitigate the financial expenditures in the period that have evolved together with the cost of the service of the debt. Going to slide 12. This is the final slide in my presentation.
I'm going to show you the evolution of our capital structure. At the end of 2025, the net debt of the company was BRL 111.1 million. This is aligned with the previous quarters, and this is always showing the balance and financial discipline that we have. Higher volume of exports throughout the year allowed us to increase through ACE and ACC our resources. These are instruments that have very competitive costs, around 7% and 8.5% per year, and they also work as a natural protection in exchange rate variables that may happen. This kind of alteration gave us flexibility to operate with a more comfortable cash flow position and reducing the exposure to exchange rates. Today, the company has an average debt cost that is around 11% per year that is very attractive, and real cost is around 7% per year when we think about accumulated inflation.
This stage really shows the efficiency of our capital structure. Other than that, we continue to strengthen our cash flow policy, prioritizing liquidity and being more robust to face any kind of macroeconomic changes that may happen. We finished the year with a leverage of 1.6, which is pretty sane and really preserves our capability of investment. Like I like to highlight, none of our debts have financial covenants. I will finish my talk, and I'll go back to Rodrigo for his final remarks.
Thank you, Carisa. I will finish the presentation on slide 13 with our agenda for 2026 now. To be able to finish today, I would like to share our strategic agenda for 2026. This is a year that shows the continuation of our growth strategy. But above anything else, it's a new cycle of transformation for the company.
We are going to focus our efforts in three main fronts. The first is innovation and modernization. We're going to accelerate investment in technology, process, products, making sure that the company is going to continue to evolve in efficiency, competitiveness, and the capability of delivering results. Innovating is no longer an option. It is what is going to sustain our relevance in the long term. The second front is strengthening industrialized construction. This segment has already shown that it has a lot of potential, and it will be more and more central in our strategy. It has superior margins and really increases our solution portfolio and puts us in a position in the market that allows for consistent growth. In 2026, we're going to strengthen this movement even more, increasing capabilities, offer, and capturing new opportunities as well.
The third front that we're going to focus on is perhaps the most symbolic one, which is people. We're starting a project which is called Sustainable Habitat that is more than just moving our headquarters to the countryside of São Paulo, but it's actually about building a new chapter in our history. We're going to bring corporate closer to the operation, integrating competencies and strengthening the culture of the company, and creating a unique environment where exchanging of ideas, collaboration, and innovation happen effortlessly. This is a movement that strengthens who we are and who we want to be. Sustainable Habitat is not only a goal, but it's the materialization of the company that is preparing itself for the future, valuing its people, and building every single day the foundation for the sustainability of the business.
In 2026, this is going to be a year of execution, focus, and advancements. We are ready for the next step together with courage, with discipline, and with the certainty that the best is yet to come. Now, I'm going to go over to the beginning of the Q&A with our MC.
Thank you. We're going to start the Q&A session now. I will ask that you please identify yourself, ask all of your questions at once, and wait for the company's response. Remember to ask the question, just write it in the chat of this very call on Zoom. Please wait as we receive your questions. Good morning. We've received a question from the investor. "I congratulate the company, and I hope that briefly the construction system can be consolidated." I'm asking about some. Is there a possibility of Eternit working on mining of rare earths in Goiás?
Hello, good morning. Well, the answer is yes and no. This is a question that has been coming up in our results calls. The company has been studying rare earths in this region where we have our operation, where we already operate with mining chrysotile. And knowing that all around there are companies that are working on mining rare earths, and this is something that has been consolidating itself in the market. But right now, we don't have any economic indication that shows that the location where we mine chrysotile, we have the economic possibility of mining. But yes, this is something that is on our radar. It is important and relevant for the company and for the country. But economically, we haven't found any economic information that really makes us feel safe to do that.
The next question is from another investor.
Related to the construction systems, is there the intention of the company in having a relationship with the building companies that work with Minha Casa, Minha Vida to increase the numbers of the company? And if these systems are feasible for popular homes."
Thank you for the question. This is a topic that is very related to our main strategic focus. The company has been developing solutions that are related to this sector of industrialized construction, because industrialized construction has been growing at a very accelerated rate over the last couple of years, unlike traditional construction that highly depends on investment coming from the government, Minha Casa, Minha Vida, and they are very pressured by the interest rate that we have in the country currently. Industrialized construction is going to give the company the optimization of its assets, contributing to the results of the company.
We have been developing solutions to work with the construction companies, to work with the specifiers to be able to advance the construction model. Yes, the answer really is related to the question. The company has been developing solutions to work together with this kind of model and the construction companies that today work in the sector of construction.
The next question is, congratulations for the results. Do we have any updates on the authorization or prohibition of the mining of chrysotile by the Supreme Court or the Goiás government? Do we have any deadlines? Is the five-year deadline from the government of Goiás already on now? Mr. Rodrigo will answer.
The process and the trial for SAMA is still with the Supreme Court. We don't have any final decision as of yet, and there isn't also a specific deadline for this judgment to be passed.
The Goiás law is still not active because it really depends on the decision from the Supreme Federal Court. We are doing everything aligned with what the state of Goiás has been demanding of the company with this entire process. We are paying attention to the process. We are making internal decisions and having the correct actions so that we can start this process of validation. As soon as it starts, our operation is going to be in a phase-out process.
The next question is, industrialized construction still has barriers that have to be surpassed, such as regulation and qualified labor. Is this aligned with the expectation of growth that the company has? What is the destination of the Tégula assets? I will go over to Mr. Rodrigo for the answer.
Good morning. Thank you for the question.
It is aligned with everything that we have been mentioning about the company. Yes, the company is paying attention to regulation. Industrialized construction, there is not just one model. It is actually quite generic, what we usually call industrialized construction. In this context, industrialized construction goes through a steel frame, wood frame model, modular construction, and even the replacement of traditional brick walls for systems that in the future, Eternit could provide to the market. When we talk about industrialized construction, it is actually much broader than just producing that cement plaque and offering it to the market so that they can close a wall on the inside or outside. We provide the product today.
We have solutions that are being developed that are going to go from the very floor, which is a substrate to be able to work with concrete until closing a wall in a traditional model of construction, replacing bricks. I would say that industrialized construction has a context of optimizing labor, removing labor from the actual construction site and bringing it inside the organization and the industry to optimize the process. I would say that the company understands that there is an important growth bias that is already open, although there are some blocks in terms of regulation. Even in that case, there is a very long path to still be on, and there is a lot of opportunity for the company. The second question is related to the asset that we have for Tégula. This is an operational asset that we had until last year.
We ended up finishing the operation and this asset today is being alienated.
The next question is: Is there a prediction to change the current payment of dividends to have payments in specific periods? What is the date of payment and the final date? I will go over to Carisa for the response.
Hello, good morning, everyone. The company right now does not have any predictability of changing the current dividend policy. The current dividend policy predicts paying the minimum mandatory dividend, which is 25% of distributable net profit, and there is an annual payment that is predicted, and then we have two installments. For this dividend that we have deliberated in 2025, which was a total of BRL 10.54 million, this is going to happen in two days. June 22nd is the first, and the second one, September 18th. The ex-date is March 31st.
The next question is: I didn't understand the carbonation topic. Could you say if this is positive for the company? Now I'll go over to Mr. Rodrigo for the response.
Thank you for the question, because this is very relevant for us within the context of ESG. Carbonation is a natural chemical process that happens with fiber cement. This process captures CO2 in the atmosphere. We've had recent provocation from one of our advisors on the topic, and there was a very important research that was done together with the University of São Paulo, USP. This research lasted over a year, and the final conclusion was that equivalent to 2024, just so you can understand, which is when the study was performed, the products that we sold in 2024 had a CO2 sequester that was related to almost 130 million tons of CO2 removed from the atmosphere.
It's very relevant. Just so you can have an idea, this volume of CO2 capture is the equivalent of 6 million adult trees. So it's very relevant. It does put Eternit within this ESG environment, and it's a great position for us, and it is pro the environment. So I would say that our products, other than bringing the comfort into people's home, bringing safety, we also have a very important role in the chain for CO2 capture. So this is something that we have been studying quite a lot, and we have been talking about it a lot because this is a very important fact for the sector.
The next question: I noticed that the company has been talking about efficiency and controlling expenses, but what are the actual actions? Now I'll go over to Ms. Carisa for the response.
Well, I think that talking about efficiency and expenditure control, we have been focusing on two fronts. One, that we've been calling conscious management of company resources, and the second front is trying to always find ways to optimize. On the first front, when we're talking about conscious management, what have we been doing? A lot of austerity when applying company resources, but always keeping in mind that the focus is also not losing sight of governance. Then aligned with governance, we've been looking for alternatives and more efficient solutions that can generate operational gain for the company. Which is the movement that we've done with the implementation and migration to SAP S/4HANA, that we have strengthened governance at the same time as we're able to have more optimization and more efficient, faster results with less people doing manual processes.
In the same line as HANA, we have been doing process automation. We created a shared services center, and our goal is to automate and standardize all processes in the company. We have eight sites all over Brazil, so this process of standardization is very important to us. We've also been doing a process of simplifying the societal structure that is also going to reduce costs for the company. I think that along these lines, I'm also going to highlight our change in the HQ, as Rodrigo has mentioned, moving to Hortolândia. This also brings synergy for people as well as costs for the company, because now we're going from a rented HQ to our owned HQ. Thinking about the optimization front, I would talk about our constant search for opportunities.
Among them, I would highlight tax opportunities that were a highlight in the results of 2025 because they are able to make us maximize our cash flow and also selling non-operational assets and discontinuing activities that today, as Rodrigo has mentioned, for Tégula, for example, they do not make sense for the company anymore. It is something that helps us rebuild our cash flow.
Next question. Can Eternit transform all of its industrial plants for this revolution with no great cost, or do we need new and heavy investment? Rodrigo?
Thank you for the question, and it is also very aligned with an industrialized construction. I understand that this is the focus of the question. The beauty of this segment for us is the understanding that we are using our installations and our industrial plants.
We are using our expertise because the main input of these products for this segment is based on cement, which is exactly what we use for the fiber cement roof tiles. We have the development of the channel as well. So we have the three main pillars, which are industry, supply, and the logistic market, and all of it is aligned with our strategy. Today, the industrial plants are. Basically, we have six sites all over Brazil. So Paraná, São Paulo, Rio, Goiás, Bahia, and Ceará for fiber cement with 14 machines. To convert one of these machines, the investment is relatively small. So basically, the use of these assets is total. The big challenge that we see here, even more than the development, the conversion of these equipment and production lines, is the development of product solutions.
Today, you are going to go to Europe, the U.S., that are already using solutions that are aligned with this path of industrialized construction, and you can find products that have different kinds of finishes. So the challenge that we have is to internally be able to develop these products as well. These are products that in the future may replace wood, where you have finishes that are already applied to the surface when you are installing a specific solution, which is going to be your final finish in the material. We understand that this is possible. It is not a relatively high investment, and this is the path that we are going towards. So the response is, the biggest investment has already been done, which is the production lines for roof tiles, which the production lines can be converted to other products in the industrialized construction.
Next question.
What challenge does the company see in order to attract women to the construction segment? I will go over to Mr. Rodrigo and then Carisa.
Well, thank you so much for the question because it is very aligned with our values, the company's values. We have been doing very important work within the company. Our company is a company that creates materials for the construction industry, and this is an industry that really has a challenge attracting women to work in everyday industrial operations. They are equipment that are heavy machinery, so we do have a challenge with attracting women. Even though we spare no efforts to do that, we have been developing some projects for some time, and we are very happy that we are able to attract, or better yet, create this movement that is aligned with our values.
We had a partnership with the Instituto Nós por Elas, and we created a project, Eternit por Elas, for women. Carisa, who is here with us, she is our CFO, and she is the representative that we have within the board and the executive part of the company. Also recently, we were able to develop and promote internally an employee who today is our industrial manager. She is our first industrial manager, I think, out of the 86 years that the company has been in operation. This is a very important accomplishment that we have been able to achieve and to be able to transform this value in action. I will leave Carisa with the words. She is our representative in the executive group, and she can collaborate a little bit better within that topic.
Thank you, Rodrigo. Thank you for your words.
But truly, it is a challenge. We see this as a challenge. That is why I think it is so important to have this awareness in the company and to have this project, Eternit por Elas. It is very interesting because we have a partnership with Instituto Nós por Elas. I usually say that today, looking at the sector, only 10% of the formal workforce is composed by women, not only on Eternit, but the construction sector as a whole. This shows a challenge that is not really a challenge for us, but it is a general challenge. But we are really working with diversity and gender inclusion. In this project, Eternit por Elas, we have already had the commitment of reaching 20% of the entire group of employees represented by women and 15% of leadership positions until 2030.
This is a very important commitment that is very challenging for the company, no doubt. But we have been having a gradual process that obviously it is not just a commitment, it has practical action. We have three areas of this project. One of them, organizational culture that is more inclusive, so making sure we have no barriers in this process. The other is development and capacitation training for all of our employees. The other one that is very important is creating future leaders that are women. We have been working on all three fronts to make sure we are going to achieve this in 2030.
Thank you. If there are no further questions, the Eternit conference is now finalized. Thank you so much for your participation.