DXCO3

Dexco S.A., formerly known as Duratex, is a publicly held company founded in 1951, headquartered in São Paulo, with shares traded on B3’s Novo Mercado segment under the ticker DXCO3. Its trajectory began with the manufacture of wood fiberboards in Jundiaí (SP), in a pioneering operation in Brazil. Over the following decades, the company expanded its industrial and forestry base, incorporated new businesses, and diversified its portfolio. Relevant moves included the acquisition of Deca in 1972, entry into the MDP and MDF segments, the launch of laminate flooring, international expansion into Argentina, the United States, Europe, and Mexico, as well as the achievement of international certifications in forest management. From the 2000s onward, the company consolidated its presence in wood panels, strengthened its footprint in metal fittings and sanitary ware, and began to join governance and sustainability indices on the Brazilian stock exchange.

Historically anchored in wood and building materials, Dexco has evolved into a business model based on two major fronts: Wood and Construction Finishes. The Wood division encompasses own forestry operations, production of reconstituted wood panels (MDF and MDP), laminate and vinyl flooring, as well as a stake in dissolving pulp through the LD Celulose joint venture. The Construction Finishes front brings together the Metals and Sanitary Ware and the Coatings divisions, operating in faucets, valves, showers, toilets, sinks, and a wide range of ceramic and cement coatings. This setup reflects a verticalized model in which the company controls everything from forestry to industrial transformation and distribution, with strong integration between production base, brands, and sales channels. In 2021, upon reaching its 70th anniversary, the change of corporate name to Dexco marked a phase of strategic repositioning and broadening of the “house of brands” concept focused on solutions for renovation, construction, and decoration.

Dexco’s operating segments have different weights in revenue generation, with predominance of the Wood division. In 2024, this segment accounted for around 65% of consolidated net revenue, while Metals and Sanitary Ware represented approximately 24% and Coatings, 11%. In Wood, products are sold mainly under the Duratex and Durafloor brands. Duratex supplies raw and coated MDF and MDP panels used in the furniture and construction industries, with a focus on high machinability and a wide variety of finishes. Durafloor focuses on wood laminate flooring and recyclable PVC-based vinyl flooring, as well as baseboards and other accessories. In dissolving pulp, through LD Celulose in Minas Gerais, the company participates in a project with annual capacity of 500 thousand tons, aimed at producing cellulose specifically for textile fibers such as viscose, modal, and lyocell, whose results are recognized by the equity method.

On the Construction Finishes front, the Metals and Sanitary Ware division is represented mainly by the Deca and Hydra brands, operating across different income segments, but with a greater focus on the mid- and high-income public. The portfolio includes sanitary metal fittings, valves, faucets, mixers, showers, sinks, toilets, and accessories for bathrooms and kitchens. The Coatings division, in turn, comprises the Ceusa, Portinari, and Castelatto brands, offering polished porcelain tiles, tiles, special pieces with 3D technology, and premium cement coatings. The acquisition of companies such as Ceusa, Cecrisa (Portinari), and Castelatto reinforced Dexco’s presence in higher value-added coatings, enabling greater diversification in materials and design. In 2024, the company announced its exit from the electric shower and faucet segment, while keeping the Hydra brand in its portfolio, in line with its focus on core businesses.

Dexco maintains a relevant industrial and forestry presence in Brazil and Colombia, with 15 manufacturing units and 5 forestry units in Brazil, as well as 2 plants and 1 forestry unit in Colombia. This footprint is structured to supply both the domestic market and exports, supported by offices and distribution centers in countries such as the United States and Colombia, in addition to commercial partners in different regions. In 2024, approximately 82.7% of consolidated net revenue originated in Brazil, while the remainder was obtained in 53 countries, with a strong concentration in the Americas and a relevant contribution from markets such as Colombia, the Dominican Republic, Peru, and Paraguay. The customer base is diversified: in the Wood segment, around 2,200 customers were served in 2024, while Deca products reached approximately 52 thousand points of sale and the Coatings division around 20 thousand points of sale, with a strong presence in home centers, building materials retailers, and industrial channels.

Dexco’s distribution and commercial relationship model combines direct sales, long-term contracts—especially in MDF and MDP panels—and wholesale and retail channels in the case of Metals, Sanitary Ware, and Coatings. The company works with more than 8.7 thousand active suppliers, concentrated mainly in Brazil and Colombia, complemented by partners in Europe, China, and India related to mineral inputs, logistics, equipment, and outsourced services. In Metals and Sanitary Ware logistics, shipping is concentrated in units located in João Pessoa, Recife, and Jundiaí, with the latter accounting for most of the revenue, serving primarily the Southeast and South regions, in addition to exports. Transportation is mostly carried out by third parties under a CIF model, in which Dexco assumes responsibility for delivery to customers.

Dexco’s operations are embedded in a complex regulatory environment, mainly in the environmental field. The company depends on various licenses and authorizations for its industrial and forestry activities, including operating licenses, authorizations for the use of controlled chemical substances, and the movement of hazardous waste, with regulations at the federal, state, and municipal levels. Requirements vary according to the state and type of activity, with specific regimes, for example, in São Paulo, Minas Gerais, Rio Grande do Sul, and Alagoas for planted forests. In the manufacture of sanitary metal fittings, some product lines require specific certifications and seals, such as those from INMETRO. Compliance with these norms demands continuous investments in process adjustments, emissions control, waste management, and environmental monitoring, directly influencing operational planning and long-term costs.

In terms of environmental, social, and governance practices, Dexco maintains management systems certified under standards such as ISO 14001, ISO 9001, and ISO 45001, in addition to internationally recognized forest management certifications such as the FSC seal, present in its operations since the 1990s. The company structures its activities around formal ESG policies, with an emphasis on sustainable use of natural resources, circular economy, climate change, and assessment of social and environmental risks in investment decisions. On the social front, it adopts human rights policies aligned with international standards, rejects forced, child, or slave-like labor, and values diversity, equity, and inclusion, with targets for greater participation of women in leadership positions in Brazil and Colombia. In governance, besides being listed on B3’s Novo Mercado, Dexco states that it does not make political donations and maintains formal whistleblowing and compliance channels, as well as a dedicated Institutional and Government Relations department to monitor the regulatory environment and participate in sector discussions.

The shareholding structure of Dexco S.A. is characterized by shared control between two relevant blocs: Itaúsa and the Seibel group, which hold significant stakes in the voting capital. This configuration is combined with listing on Novo Mercado, a segment that requires higher levels of transparency, governance practices, and minority shareholder rights. The creation of the corporate venture capital fund DX Ventures, with investments in innovative companies in the construction sector such as Mysa, Brasil ao Cubo, Urbem, and Noah, highlights the strategy of capturing opportunities in new construction models and industrialized solutions. In parallel, investment cycles such as that of 2021–2025, later adjusted in amount, demonstrate a capital allocation approach based on prioritizing projects with higher return potential, industrial modernization, forestry expansion, and asset optimization, while maintaining a focus on a business portfolio tied to wood, finishes, and dissolving pulp, which are the economic foundation of DXCO3 shares traded on B3.