Irani Papel e Embalagem (RANI3) Q3 2025 earnings summary

Executive summary

• Net revenue reached BRL 433.5 million in Q3 2025, up 4.7% year-over-year, driven by higher prices, improved operational efficiency, and sustainable packaging initiatives.

• Adjusted EBITDA was BRL 146.2 million, up 15.9% year-over-year, with a margin of 33.7%.

• Net profit for the quarter was BRL 42.1 million, up 5.3% year-over-year, with sequential decline due to non-recurring tax credits in 2Q25.

• ROIC for the last 12 months reached 12.9%, up from 11.8% in 2024.

• Operational efficiency gains and Gaia Platform projects contributed to margin improvements.

Financial highlights

• Adjusted EBITDA margin improved to 33.7% in Q3 2025 from 30.5% in Q3 2024.

• Net debt/Adjusted EBITDA ratio improved to 2.06x, in line with financial policy.

• Dividend yield for the last 12 months was 9.85%.

• Adjusted free cash flow was BRL 100.3 million, up 202% year-over-year.

• Cash position at quarter-end was BRL 681.5 million, up 8.7% from the previous quarter.

Outlook and guidance

• Management expects continued margin improvement as Gaia Platform projects ramp up.

• Demand for corrugated cardboard is expected to remain stable through year-end, with 2% growth projected for 2026.

• Prices are expected to remain stable, with no major reductions anticipated.

• New investment cycles will be considered once interest rates drop and uncertainties ease.

• Ongoing investments in operational efficiency and sustainability are expected to support future growth.