Q4 2025 Empresas CMPC SA Earnings Call Transcript
Key Points
- Empresas CMPC SA (XSGO:CMPC) reported a 6% quarter-on-quarter increase in Pulp sales, driven by higher international prices and increased sales volume of hardwood pulp.
- The company's fourth quarter EBITDA increased to $262 million, with the Pulp segment contributing 59% of this figure.
- Net income rose to $37 million, up from $34 million in the previous quarter and $10 million in the fourth quarter of 2024, aided by higher EBITDA and favorable exchange rate differences.
- The company achieved a AAA rating from the carbon disclosure project, highlighting its leadership in managing climate risk and responsible resource use.
- Empresas CMPC SA (XSGO:CMPC) successfully negotiated contracts for 100% of its volume for 2026, indicating strong demand in certain regions.
- Softys and Biopackaging segments experienced declines, with Softys decreasing by 1% and Biopackaging by 5% quarter-on-quarter due to lower sales volumes.
- Operating costs increased by 1% quarter-over-quarter and 2% year-over-year, driven by higher sales volume and consolidation expenses.
- Biopackaging EBITDA fell by 61% from the prior quarter and 63% year-over-year, reflecting lower volumes and a challenging market environment.
- The net debt-to-EBITDA ratio increased to 3.97 times in the fourth quarter of 2025, up from 3.79 times in the third quarter and 3.15 times in the fourth quarter of 2024.
- Softwood pulp production decreased by 14% quarter-over-quarter and 6% year-over-year, reflecting maintenance schedule fluctuations and lower sales to Asia, China, and Europe.
(technical difficulty) quarter sales growth was driven primarily by the Pulp business. Pulp increased by 6% quarter-on-quarter, reflecting higher international prices and increased sales volume of hardwood pulp.
Softys decreased 1% or lower volumes in the tissue paper unit, while Biopackaging decreased by 5% mainly on lower sales volume. The year-on-year variation reflects an 8% drop in Pulp and Forestry sales, largely explained by a lower average price. In Biopackaging, a 12% drop was recorded as a result of a lower sales volume; and in the case of Softys, a 9% increase was observed, explained by higher sales volume along with a lower average price in US dollar terms.
Operating costs increased 1% quarter-over-quarter and 2% year-over-year. Operating costs increased quarter-on-quarter due to higher sales volume and year-on-year mainly by the consolidation of Falcon in Brazil. Other operating expenses amounted to $348 million in the fourth quarter, increasing 4% and quarter-on-quarter and 5%
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