Klabin reported a challenging first quarter of 2026, with a net loss of R$497 million (approximately US$90 million), mainly reflecting non-cash accounting adjustments related to biological assets. Despite the negative bottom-line result, the company highlighted continued operational strength, higher sales volumes, improved leverage, and progress toward stronger free cash flow generation.
Klabin recorded net revenue of R$4.9 billion (approximately US$900 million) in the first quarter, up 2% year-on-year, supported by a 12% increase in total sales volume, which reached 1.16 million tonnes.
Growth was recorded across Klabin’s main business segments. Pulp volumes increased 16%, driven by strong performance in fluff pulp, including a 30% increase in Asia-Pacific and Brazil. Paper volumes grew 15%, supported by demand for carrier board and increased kraftliner exports to Asia, while packaging volumes rose 3%, reflecting continued gains in corrugated packaging.
Adjusted EBITDA reached R$1.7 billion, with a resilient 34% margin, despite scheduled maintenance activities and currency pressures. The company reported that a planned 14-day shutdown at the Monte Alegre unit impacted EBITDA by approximately R$124 million, while the appreciation of the Brazilian real affected export margins.
Klabin’s quarterly net loss compares with a net income of R$446 million in Q1 2025. According to the company, the result was primarily impacted by a R$581 million negative fair value variation of biological assets, a non-cash accounting adjustment related to forest valuation that did not affect operating cash flow. Higher financial expenses also weighed on the quarterly result.
The company continued to strengthen its balance sheet, reducing leverage to 3.3x net debt/EBITDA in US dollars, compared with 3.9x in Q1 2025 and 4.5x at the end of 2024. Net debt stood at R$24 billion, while liquidity remained strong at R$11.5 billion, including R$8.9 billion in cash.
Klabin also highlighted the completion of its nine-year transformational investment cycle, following the conclusion of major projects including Puma I and Puma II and the start-up of the new recovery boiler at the Monte Alegre unit. With no major transformational investments planned, the company expects capital allocation to focus on deleveraging and generating free cash flow from 2027 onwards.
Looking ahead, Klabin maintained its 2026 cost guidance and expects improving market conditions, supported by price recovery initiatives across short-fiber pulp, fluff pulp, and kraftliner segments.
