Dexco SA (DXCO3.SA): 2Q26 Preview: Deleveraging on Track

研报英文原文证据摘录

Dexco SA (DXCO3.SA): 2Q26 Preview: Deleveraging on Track

Action |

15 Jul 2026 08:34:44 ET │ 12 pages

Dexco SA (DXCO3.SA)

2Q26 Preview: Deleveraging on Track

CITI'S TAKE

Buy / High Risk The prevailing market concern was that cost headwinds from the ongoing

geopolitical conflict could weigh significantly on the quarter, but we Price (14 Jul 26 18:00) R$5.09

believe that Dexco managed to more than offset input cost pressure Target price R$7.50

through volume growth and disciplined price execution. Adj. EBITDA may Expected share price return 47.3%

reach ~R$500mn in 2Q26 (R$450mn ex- Bracell). The Wood Panels Expected dividend yield 1.2%

division recognized the Bracell timber supply contribution in the Expected total return 48.5%

consolidated figures, at volumes above 1Q26. Ceramic Tiles and Metals &

Market Cap R$4,678M Sanitary Ware also showed sequential improvement. The company

US$922M continued to deleverage in 2Q26, supported by higher EBITDA and a

further reduction in net debt. We see year-end leverage ratio of 2.5x

remains achievable. Capex is expected to be sustained at ~R$800mn for

the full year. We maintain our Buy/High Risk recommendation and Gabriel BarraAC

R$7.50/sh target price. +55-11-4009-2223

gabriel.barra@citi.com

Wood/Dissolving Pulp — The key challenge in the quarter was the ~50% USD Pedro Ferreira De Mello

increase in urea prices, compounded by pressure on melamine, methanol and freight +55-21-4009-0425

costs. On the other side, we expect price increases, but these only took effect in pedro.mello@citi.com

mid-2Q, creating a timing gap between cost (which incurs on day zero) and revenue

capture. Wood may reach R$450mn (R$400mn ex Bracell). Full-year segment

EBITDA is estimated at ~R$2bn including the contribution of Bracell (c. R$150mn).