On Wednesday, July 15, 2026, Paranapanema (PMAM3) reported that in the fourth quarter of 2025 (4Q25) it posted negative EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 130 million, 40% lower than in the same period of 2024, impacted by the absence of copper sales at the Dias d’Ávila unit, in Bahia. Net revenue in 4Q25 totaled R$ 116 million, an 11% year-over-year drop.
In full-year 2025, net revenue came to R$ 562 million, 22% higher than in 2024, reflecting product mix strategies and growth in sales under the Integral modality. In the same period, EBITDA was negative at R$ 514 million, including a R$ 245 million loss from an impairment charge recorded in the third quarter due to the hibernation of one of the units; excluding this effect, annual EBITDA was negative at R$ 269 million, an improvement versus 2024.
The company’s sales volume reached 7,506 tons in 4Q25, a 25% decline compared to 4Q24, due to the decision to temporarily hibernate the Caraíba unit. On an annual comparison with 2024, there was a 7% increase in volume, tied to the period when all units were operating, while the Eluma unit delivered weaker performance than in the previous year, affected by atypical market impacts.
Fixed costs in 4Q25 were 33% lower than those seen in 4Q24, mainly due to resizing the cost structure at the Dias d’Ávila unit. In 2025 as a whole, fixed costs were 6% lower than in 2024, as a result of gains in operating efficiency. In the same quarter, the company posted positive operating cash flow of R$ 10 million, attributed to the adjustment in the sales mix, cost control and negotiations with suppliers, although higher inventories and the payment of tax obligations reduced cash generation over the quarters.
Regarding the financial restructuring, the board of directors approved the 8th issuance of debentures convertible into shares for a private placement, the opening of the 7th window for requests to convert credits into shares, and a capital increase through the issuance of new common shares. Within the scope of the court-supervised reorganization, the plan provides for the resumption of operations, the granting of special terms and conditions for the payment of claims, the partial sale of the group’s assets and the raising of new financing. In the 4Q25 balance sheet, R$ 2,140.5 million in renegotiated debt remains classified as short term after a reclassification made as of 4Q22, keeping 99% of indebtedness maturing in the short term, while the company continues to negotiate new terms with creditors.
