Slides
Page 1
Results Presentation 2Q26 August 06th 2026 Deca Portinari Hydra Duratex castelatto ceusa Durafloor Dexco
Page 2
Disclaimer The information herein has been prepared by Dexco S.A. and does not represent any form of prospectus regarding the purchase or subscription to the company’s shares or securities. This material contains general information relating to Dexco and the markets in which the company operates. No representation or guarantee, expressed or implied, is made herein, and no reliance should be placed on the accuracy, justification or completeness of the information provided. Dexco does not offer any assurances or guarantees regarding the fulfilment of expectations described.
Page 3
Highlights 2Q26 | 1H26 2Q25 2Q26 2.122 2.232 +5,2% 259 2Q25 166 2Q26 702 714 23,0% 24,6% Gross Margin 20,9% 24,5% ◼ Ceramic Tiles Division continues to adjust costs, productivity and capacity to a still challenging market environment, which included a plant shutdown and inventory reduction, while the industry faces declining demand and pricing pressure. ◼ Sanitary Ware Division prioritizes profitability recovery through price increases, with an expected decline in volumes as part of this strategy; progress in company-controlled initiatives and productivity projects continues to support margin improvement. ◼ Wood Division maintains a consistent earnings trajectory, even amid a quarter of cost pressure, while forestry trading operations strengthened cash generation.. ◼ LD Celulose reported Recurring EBITDA of R$339 million in 2Q26 and a 47.4% margin, of which R$166 million corresponds to Dexco’s stake. ◼ Dexco reported Adjusted Recurring EBITDA of R$547 million in 2Q26, with strong operating cash generation and continued progress in its financial deleveraging trajectory. Adjusted Recurring EBITDA totaled R$547 million in the period, representing a 23.6% increase compared to 2Q25, evidencing the solid improvement in operating performance. 1H25 1H26 4.024 4.250 +5,6% 23,2% 26,0% Recurring Net Revenue and Gross Margin R$ million / % 525 1H25 347 1H26 1.313 1.372 19,6% 24,1% 219 -105 1S25 109 -3 1S26 114 106 -7,1% Net Revenue LD Celulose Dexco EBITDA Margin 443 547 788 1.025 -64 6 94 28 +13,3% 2T25 2T26 30 34 LD Celulose Dexco Adjusted Recurring EBITDA and Margin R$ million / % Recurring Net Income R$ million
Page 4
Cash Flow 2Q26 | 1H26 Free Cash Flow R$ million Working Capital/Net Revenue ( % ) CAPEX R$ Million 15,6% 1Q25 16,2% 2Q25 18,5% 3Q25 18,3% 4Q25 17,3% 1Q26 15,8% 2Q26 (1) Maintenance, factory modernization and business sustaining. . ◼ Q26 confirms the trajectory of improved operating cash generation, with contributions from all three divisions: resilience and cost management in Wood, profitability recovery in Sanitary Ware, and adjusted productive capacity in Ceramic Tiles, all converging toward lower working capital consumption; ◼ The continued and structural improvement in working capital remained evident in 2Q26, with Working Capital / Net Revenue reaching its lowest level since 1Q25; ◼ Strong cash generation, discipline in Working Capital and Capex were the main drivers of positive Operating Cash Flow in the first half of 2026, demonstrating Dexco's focus on taking concrete actions that are under the Company's control. 789 (262) (367) (267) (68) 25 (150) (235) (385) 1.025 158 (372) (109) (33) 13 682 (326) 356 Recurring EBITDA Capital Giro CAPEX Sustaining Projects Tax Others Financial Flow 1H25 1H26 Fluxo Oper. FCL Total Investments 2Q25 Forestry OPEX 203 Maintenance 63 2TQ6 1H25 HS26 Sustaining(1) CAPEX Projects CAPEX 206 106 135 197 88 58 260 107 367 267 262 110 372 109
Page 5
Cash Flow 2Q26 | 1H26 Free Cash Flow R$ million Working Capital/Net Revenue ( % ) CAPEX R$ Million 15,6% 1Q25 16,2% 2Q25 18,5% 3Q25 18,3% 4Q25 17,3% 1Q26 15,8% 2Q26 (1) Maintenance, factory modernization and business sustaining. . ◼ Q26 confirms the trajectory of improved operating cash generation, with contributions from all three divisions: resilience and cost management in Wood, profitability recovery in Sanitary Ware, and adjusted productive capacity in Ceramic Tiles, all converging toward lower working capital consumption; ◼ The continued and structural improvement in working capital remained evident in 2Q26, with Working Capital / Net Revenue reaching its lowest level since 1Q25; ◼ Strong cash generation, discipline in Working Capital and Capex were the main drivers of positive Operating Cash Flow in the first half of 2026, demonstrating Dexco's focus on taking concrete actions that are under the Company's control. 789 (262) (367) (267) (68) 25 (150) (235) (385) 1.025 158 (372) (109) (33) 13 682 (326) 356 Recurring EBITDA Working Capital CAPEX Sustaining Projects Tax Others Financial Flow 1H25 1H26 Operational FCF Total FCF Investments 2Q25 Forestry OPEX 203 Maintenance 63 2TQ6 1H25 HS26 Sustaining(1) CAPEX Projects CAPEX 206 106 135 197 88 58 260 107 367 267 262 110 372 109
Page 6
Corporate Debt 2Q26 Amortization Timeline(1) R$ million Financial Leverage R$ million Average Term 5,1 years Average Cost 104,4% CDI 5.499 5.585 5.519 5.323 5.135 2Q25 3Q25 4Q25 1Q26 2Q26 Net Debt(1) chart reflects principal amortization only, excluding interest and derivatives.. ◼ Continued progress in the financial deleveraging trajectory, with the Net Debt/EBITDA ratio reduced to 2.72x at the end of 2Q26, down 0.27x quarter-over-quarter and 0.67x year-over-year; ◼ The reduction in indebtedness remains in line with the Company's expectations, while also focusing on a balanced debt repayment schedule and a healthy cost of debt within a high-interest rate environment; ◼ Net debt decreased by approximately R$200 million during the quarter, supported by recurring EBITDA generation and structural improvements in working capital; 2.678 71 1.218 492 230 1.142 4.376 750 Cash Avaiability (R$) 2026 2027 2028 2029 2030 2031 and beyond 3.428 3,39x 3,48x 3,35x 2,99x 2,72x 13% 87% Short Lonmg
Page 7
Ceramic Tiles
Page 8
Sector Environment ANFACER Data Capacity utilization in the sector over time (%) Ceramic Tiles sector sales volume 2021-2025 | Wet Process (million | m²) 2021 2022 2023 2024 2025 296,1 249,6 231,7 230,8 230,9 -22,0% Wet Process (MM m²) 2Q25 3Q25 4Q25 1Q26 2Q26 72,8% 74,6% 72,1% 63,1% 65,0% YTD May’25 YTD May´26 96,9 88,4 8,7% ◼ Market demand remains weak, particularly in the wet-route segment, which has contracted 8.7% year-to-date; ◼ Industry inventories remain above historical levels and, despite signs of stabilization, continue to weigh on pricing dynamics; ◼ Idle capacity remains elevated across the Ceramic Tiles industry. Excess installed capacity continues to be a structural feature of the sector, reflecting the mismatch between supply and demand.
Page 9
Volume 000m2 Results Capacity Utilization 2Q26 70,3%* Total ◼ Volume discipline, with shipments remaining virtually stable year-over-year, reflecting the alignment between production levels and underlying market demand following capacity adjustment decisions; ◼ Gross margin expansion despite lower revenue, demonstrating cost discipline and productivity gains that more than offset top-line pressure; ◼ Improved operating profitability, supported by continued portfolio and channel optimization, with a stronger focus on higher value-added products. 2Q25 2Q26 4.232 4.221 -0,3% 1H25 1H26 8.289 7.878 -5,0% Recurring Net Revenue & Gross Margin R$ million / % Adjusted and Recurring EBITDA & Margin R$ million / % 2Q25 2Q26 215 190 1H25 1H26 415 362 8,3% 13,0% Gross Margin 9,3% 14,4% 1Q25 1Q26 6 7 1H25 1H26 (6) 3 -1,5% 0,9% Net Revenue EBITDA 2,9% 3,5% EBITDA Margin *Based on the total installed capacity of the Botucatu plant, Dexco's current capacity utilization rate stands at 53.5%.
Page 10
Metals & Sanitary Ware
Page 11
ASFAMAS combined data average monthly value (R$ million) Metals Approximate Historic Industry Gross Revenue 2Q25 3Q25 4Q25 1Q26 2Q26 273 280 264 245 267 San. Ware Approximate Historic Industry Gross Revenue average monthly value (R$ million) 2Q25 3Q25 4Q25 1Q26 2Q26 287 268 270 245 255 Sector Environment ◼ The construction materials market contracted during the first half of 2026, with only early signs of stabilization emerging toward the end of the second quarter; ◼ Consumers remain active, but are increasingly shifting toward lower-priced products, putting pressure on mix across the sector (down-trading). ◼ Civil construction activity grew during the year, supported by new real estate launches; however, this has not yet translated into a meaningful increase in demand for finishing products.
Page 12
Volume 000´ pieces Adjusted and Recurrinf EBITDA & Margin R$ million / % Results Recurring Net Revenue & Gross Margin R$ million / % 2Q25 2Q26 474 471 22,8% 29,1% 1H25 1H26 890 926 21,4% 28,7% 2Q25 2Q26 9 56 1,8% 11,8% 1H25 H126 17 95 1,9% 10,3% Net Revenue EBITDA ◼ Focus on profitability, supported by commercial discipline and the execution of RGM/GTM initiatives designed to capture value through pricing and mix management; ◼ Gross margin expanded by 7.3 p.p. and EBITDA margin by 8.4 p.p. in 1H26 (vs. 1H25), driven by pricing and mix improvements, as well as higher productivity; ◼ The period's volume decline already excludes the impact of the Paraíba sanitaryware plant, which was shut down in July 2025, and reflects the strategic focus on pricing and mix over volume; ◼ Recurring EBITDA reached R$95.1 million in 1H26, exceeding the result reported for the full year of 2025. 4.266 3.625 220 2Q25 2Q26 4.486 -15,0% Volume – Paraíba Plant 8.019 7.434400 1H25 1H26 8.419 -7,3% EBITDA MarginGross Margin
Page 13
Wood
Page 14
◼ The domestic panels market maintained healthy fundamentals in 2Q26, supported by stable demand levels; ◼ The quarter was marked by cost inflation in petroleum-based inputs and resins, with costs flowing through the manufacturing cost base before the implementation of price increases. Sector Environment IBÁ data 2Q25 2Q26 2.411 2.441 +1,2% 2H26 1H26 Domestic Foreign +5% +6% -21% -19% 1H25 1H26 4.635 4.750 +2,5% 1H25 2.505 2.685 1H26 +7,2% 2Q25 2Q26 1.317 1.381 +4,9% MDF Domestic Market Volume 000m3 MDP Domestic Market Volume 000m3 2Q25 2Q26 752 788 +4,9% 1H25 1H26 1.488 1.548 +4,0% Total Panels Volume 000m vs 2025
Page 15
Panels Volume 000m3 Recurring Net Revenue & Gross Margin R$ million / % Adjusted and Recurring EBITDA & Margin R$ milion / % 2Q25 2Q26 1.432 1.570 +9,6% 2Q25 2Q26 428 485 +13,4% 2Q25 2Q26 753 792 +5,2% Net Revenue EBITDA 25,2% 24,7% Gross Margin 29,9% 30,9% Results Capacity Utilization 2Q26 96% Total 1S25 1S26 2.719 2.962 +8,9% 25,9% 26,5% 1S25 1S26 778 927 +19,2% 28,6% 31,3% 1S25 1S26 1.472 1.507 +2,4% EBITDA Margin ◼ Healthy volume and revenue performance, with war-related cost inflation partially mitigated through price increases, productivity initiatives, and disciplined cost management; ◼ Gross margin improved by 0.6 p.p. and EBITDA margin expanded by 2.7 p.p. in 1H26 (vs. 1H25), supported by operational efficiency initiatives; ◼ Recurring Adjusted EBITDA totaled R$485 million, with an EBITDA margin of 30.9%, reflecting cost management, pricing discipline, and gains from timber trading operations.
Page 16
LD Celulose
Page 17
R E S U L T S R E L A T E D T O 1 0 0 % O F T E H O P E R A T I O N Recurring Net RevenueShipped Volume Net IncomeAdjusted and Recurring EBITDA & Margin R$ millon / % Results LD Celulose 2Q25 2Q26 158 158 1H25 1H26 305 326 +6,7% 2Q25 2Q26 875 715 -18,3% 1H25 1H26 1.718 1.472 -14,3% 2Q25 2Q26 191 58 -69,6% 1H25 1H26 443 223 -49,7% 2Q25 2Q26 529 339 -36,0% 1H25 1H26 1.071 707 -34,0% ◼ Resilient volumes: reflecting operational strength and maturity, with stable shipments quarter-over-quarter and growth in 1H26, demonstrating the operation's resilience and consistency; ◼ Revenue and margins were impacted by weaker DWP pricing in international markets, coupled with adverse exchange rate effects. ◼ Net income impacted by non-cash effects, as foreign exchange fluctuations on LD Celulose’s USD-denominated asset base generated deferred tax volatility, with no direct cash impact. 60,5% 47,4% 62,3% 48,0%
Page 18
▪ Publication of the 2025 Climate-Related Risks and Opportunities Report. ▪ Prepared in accordance with the TCFD (Task Force on Climate-related Financial Disclosures); ▪ Recommendations; disclosures have been published since 2021, with limited assurance provided since 2023; ▪ This marks an important step toward the publication of the IFRS S2 report, scheduled for 2027 (based on FY2026 data). ESG Focus for 2026: advancing preparation for sustainability- related financial disclosures in line with IFRS S2 requirements.
Page 19
Dexco 75 years Transformation Plan In 2026, Dexco celebrates its 75th anniversary, remaining focused on the continued execution of its five strategic priorities. Deca Competitiveness Tiles Turnaround Wood Innovation Financial Deleverage Go To Market
Page 20
Outlook 3Q2026 Ceramic Tiles Metals & San Ware Wood LD Celulose Advancing the productivity capture plan, with a focus on higher manufacturing utilization and operational efficiency; Commercial restructuring initiatives aimed at strengthening customer coverage and optimizing capital allocation; Key Watching Point The market environment remains challenging, with ongoing volatility, uncertainty, and softer industry demand. Price increases captured throughout the quarter; Industrial/manufacturing footprint optimization, with a focus on productivity; Key Watching Point Cooling-off related to industry-wide price increases, rather than a structural weakening in demand; a gradual recovery is expected in 2H26. Moderating volumes, in line with consumption trends and supported by favorable seasonality; Gradual capture of implemented price increases; Key Watching Point Cost volatility driven by geopolitical developments, impacting key input commodities. Quarter with no scheduled maintenance shutdowns and strong productivity, sustaining LD Celulose’s position in the first quartile of the global dissolving pulp cost curve; Higher DWP prices, supporting operating results and margin expansion;
Page 21
Results 2Q26 INVESTORS RELATIONS investidores@dex.co ri.dex.co Av. Paulista 1.938 - CEP 01310-200 Consolação - São Paulo – SP Lucianna Raffaini CFO Guilherme Setubal IR, Corporate Relations & ESG Director Guilherme Ribas IR Coordinator Liliam Toledo IR Analyst