Klabin 2Q26 Results: Solid Consolidated Print

Research evidence excerpt

J P M O R G A N

Latin America Equity Research

05 August 2026

Klabin

2Q26 Results: Solid Consolidated Print

Neutral

KLBN11.SA, KLBN11 BZ

Price (04 Aug 26):R$18.25

LatAm Basic Materials

Our take: Solid Results - Pulp + Paper EBITDA slightly missed JPMe but beat

consensus. Klabin's consolidated EBITDA of R$1,962M came in 3.4% above

JPMe and 6.2% above BBG consensus, supported by contributions from Forestry

and Corporate/Other net (including a ~R$64M land sale). However, the combined

Pulp + Paper/Packaging EBITDA of R$1,950M slightly missed JPMe by 1.8%, as

both units came in below our estimates on higher-than-expected costs. Klabin

noted that COGS rose 9% y/y (+8% on a unit/tonne basis), driven by: (a) an

increase of 6% in fixed costs, impacted by higher maintenance and personnel

expenses on inflation; (b) higher variable cost (+5%) due to pressure on input

prices amid the ongoing geopolitical conflicts during the period; and (c) higher

fibers costs. By our calculations, FCF was positive at R$164M, implying an

annualized yield of 2.9%. We expect a neutral reaction to the announced numbers.

Rodolfo Angele, CFA AC

Suzano

Pulp: costs set the tone for the EBITDA miss to JPMe. Pulp division

EBITDA of R$704M increased 4.6% q/q, but slightly missed our estimate (2.2%). While average realized prices came in above our estimate (+6.1%),

driven mainly by hardwood and softwood prices, cash opex per ton rose 4.7%

q/q and landed 12.9% above JPMe. The company highlighted that the cash cost

of pulp production increased 8% y/y (+R$106/t), driven by: (a) higher fuel

costs (+R$52/t), reflecting a 35% increase in the unit price of BPF oil; and (b)

higher fiber costs (+R$139/t), driven by (i) a safety-stock build-up and roadpreparation measures to mitigate potential El Niño-related impacts in 2H, (ii)

higher logistics and operating costs; and (iii) higher forestry logistics costs on

higher diesel prices. This was partially offset by: (c) energy, which was a

benefit as higher spot energy prices lifted energy sales revenue (+R$151/t); and

(d) a R$13/t reduction in chemicals on operational initiatives that lowered

sodium hydroxide consumption, the increase in sulfur and aluminum sulfate

…