In the third quarter of 2026 (3Q26), Klabin (KLBN11) reported net income of R$ 393 million, down 18% from R$ 478 million in 3Q25. Net income attributable to Klabin shareholders was R$ 241 million, down 31%. Consolidated net revenue totaled R$ 5.6 billion in the period, up 3% year over year, driven mainly by higher dollar-denominated prices for short-fiber pulp and paper and by the mix effect between segments and regions.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$ 1.856 billion in 3Q26, a 12% decrease from R$ 2,117 million in 3Q25, with an adjusted EBITDA margin of 33%, 6 percentage points below the prior year. According to the company, the result was affected mainly by higher costs, the appreciation of the real against the dollar and a lower contribution from other operating revenues, factors partially offset by higher prices and volumes in its business segments.
In the quarter, total cash cost per ton, including maintenance downtime, was R$ 3,483/t, up 12% from R$ 3,104/t in 3Q25, influenced by additional spending to mitigate the effects of El Niño and by pressures on inputs and freight related to geopolitical conflicts. Klabin said it achieved a R$ 13 million reduction in variable costs through efficiency initiatives and input negotiations.
Operationally, total sales volume (excluding wood) was 1,064 thousand tons, stable compared to 3Q25. Pulp segment revenue reached R$ 1.512 billion, up 6% year over year, with the net price of short fiber 18% higher at US$ 623 per ton, while paper generated R$ 1.887 billion, an increase of 4%, and packaging totaled R$ 2.009 billion, a slight decrease of 1% from the same period of the previous year.
Net debt ended 3Q26 at R$ 23.977 billion, 8% below the level recorded in 3Q25, with a net debt/adjusted EBITDA ratio over the last 12 months of 3.3 times, in both reais and dollars. Cash totaled R$ 9.5 billion and free cash flow was R$ 73 million in the quarter. Over the last 12 months through September 2026, Klabin distributed R$ 1.152 billion in dividends and other distributions, corresponding to a dividend yield of 5.2%, and repurchased 7,243,700 units, equivalent to 23% of the approved buyback program. Dividends for 3Q26 total R$ 278 million, equivalent to 15% of adjusted EBITDA.
