Q4 2025 Dexco SA Earnings Call Transcript
Key Points
- Dexco SA (BSP:DXCO3) reported a strong performance in the Wood Division, with a record nominal adjusted and recurring EBITDA, highlighting resilience in the Panels business.
- The company successfully extended and reduced the average cost of its debt, placing it in a comfortable position with 92% of debt being long-term.
- LD Celulose, a division of Dexco SA, achieved a historical productivity level with a recurring EBITDA of BRL350 million in the fourth quarter.
- The Metals and Sanitaryware division saw a unit revenue increase of 10.2% in the fourth quarter and 20.2% for the full year, reflecting price implementation and a premium product mix.
- Dexco SA is focused on financial deleveraging and has implemented initiatives such as issuing debentures and CPRs, and selling nonoperational assets to improve liquidity.
- The Ceramic Tiles division faced challenges with high inventory levels and ongoing price deterioration, leading to a negative adjusted and recurring EBITDA of BRL6 million in the fourth quarter.
- The company experienced a higher need for working capital in 2025, particularly due to increased inventory in metals and interruptions in the reverse factoring program.
- Interest rates remain high, continuing to pressure the company's financials.
- The Metals and Sanitaryware division faced cost inflation challenges, particularly due to raw materials and operational efficiency issues.
- Dexco SA's net revenue in the Ceramic Tiles division dropped 13% in the fourth quarter and 9% for the full year of 2025.
Good morning, ladies and gentlemen. Welcome to Dexco's conference call, where we will discuss the results for the fourth quarter of 2025. This conference call is being recorded. This recording may be seen at the company's website, ri.dex.co. This presentation will also be available there for download. (Operator Instructions)
Before we continue, I would like to underscore that any statements made about the future are based on the company's assumptions and beliefs. This is all based on the information that is currently available for the company. These statements may involve risks and uncertainties as they refer to future events that, therefore, depend on circumstances that may or may not occur. Investors, analysts, and journalists should take into account that events related to the macroeconomic scenario and to the industry and other factors may lead these results to differ materially from those expressed in these forward-looking statements.
We have with us in this conference call, the company's Executive Directors and the Investor Relations team. We will now hand it over to Ms. Lucianna
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