On Monday, August 31, 2026, Paranapanema (PMAM3) released its results for the second quarter of 2026 (2Q26), reporting EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 68.9 million and net revenue of R$ 169.2 million, a 19% increase compared to 2Q25, reflecting higher sales volume in the full-ownership modality and a more favorable product mix.
In the period, adjusted EBITDA, which excludes the effects of LME and the dollar on inventory, contingencies and other non-recurring items, was a positive R$ 93.2 million, a 246% increase versus 2Q25. Adjusted gross profit totaled R$ 30.0 million, and fixed costs including idle capacity fell 20% to R$ 66.4 million, as a result of the hibernation of units and a right-sizing of the cost structure.
Despite the operational improvement, the Company posted a net loss of R$ 285.1 million in 2Q26, mainly impacted by the interest update on its indebtedness, with no immediate cash effect. Adjusted net loss, after excluding financial charges and other non-recurring effects, was R$ 63.8 million.
Paranapanema’s gross debt reached R$ 6.1 billion at the end of 2Q26, with net debt of R$ 6.1 billion and 99% of obligations classified as short term, due to the reclassification of debts under renegotiation since 4Q22. Operating cash flow was a negative R$ 14.9 million, influenced by higher purchases of raw materials and payments to suppliers.
In the context of its judicial reorganization, the Company highlighted capital increases via conversion of credits into shares, a reduction of indebtedness by R$ 85.0 million through the 9th capital increase and conversion process, the completion of the 11th issue of debentures convertible into shares, and the execution of amendments for debt settlement, including a R$ 849.7 million transaction with Fundo BS and a binding proposal for a US$ 40 million investment in debentures by HW Holding Ltd.
