Empresas Copec (COPEC) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA reached US$880 million, up 11.2% year-over-year and 23.2% quarter-over-quarter, driven by strong energy division performance and positive inventory revaluation effects.

• Net income for the quarter was US$272 million, up 30.5% year-over-year and 12.5% sequentially, with significant contributions from equity investments and improved energy sector margins.

• The Sucuriú Project advanced to 62% completion, ahead of schedule, with major milestones in civil and railway construction and significant equity injections scheduled.

• The Annual Shareholders' Meeting reviewed 2025 performance and highlighted the challenging global and local economic context.

Financial highlights

• Energy division EBITDA rose to US$571 million, up 41.8% year-over-year and 77.2% quarter-over-quarter.

• Forestry division EBITDA declined to US$261 million, down 28.5% year-over-year and 9.4% quarter-over-quarter, mainly due to lower pulp prices and higher costs.

• Net financial debt to adjusted EBITDA improved to 3.10x, a 27.4% year-over-year decrease.

• CAPEX totaled US$790 million, primarily allocated to forestry and the Sucuriú Project.

• Mina Justa generated EBITDA above US$200 million, with Empresas Copec recognizing US$40 million in net income from its 40% stake.

Outlook and guidance

• Market volatility expected to persist due to global disruptions, with a challenging environment for pulp and fuels, especially in China.

• Energy division recurring EBITDA guidance for 2026 is US$1.2–$1.4 billion.

• Wood products outlook is positive, with improving demand and prices in North and Latin America.

• Sucuriú project ramp-up expected in Q4 2027, with operations set to begin at 3.5 million tons/year capacity.

• The company emphasized the need for regulatory certainty and efficient project approvals to foster investment and sustainable growth.