Earnings release
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Dexco Viver ambientes . QUARTERLY RESULTS 2Q26
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Quarterly Results 2Q26 1 QUARTERL Y RESUL TS 2Q26 Pro forma Adjusted and Recurring EBITDA totaled R$714 million in 2Q26, reflecting Dexco’s 49.0% share of LD Celulose’s results through the equity method. Total Free Cash Flow was positive at R$120.7 million in 2Q26, reflecting the Company’s disciplined capital allocation strategy, supported by strict Capex control, a positive contribution from working capital to cash generation, and financial expenses alrea dy well -structured at the beginning of 2026. MARKET CAP GRI 102-7 R$ 4.512 million SHARES OUTSTANDING 919.034.196 CLOSING PRICE R$ 4,97 TREASURY SHARES 11.163.524 WOOD Sales volume totaled 791.9 thousand cubic meters in 2Q26, up 5.2% versus 2Q25, supported by resilient domestic demand despite input cost pressures. Adjusted and Recurring EBITDA reached R$485 million, with a margin of 30.9%, up 13.4% year -over-year, reflecting higher volumes, strong pricing and contributions from forestry businesses. Investors Relations Lucianna Raffaini CFO Guilherme Setubal ESG, Corporate Relations & IR Director Guilherme Ribas IR Coordinator Liliam Toledo IR Analyst Av. Paulista 1.938 - CEP 01310-200 Consolação - São Paulo – SP investidores@dex.co DISSOLVING WOOD PULP Pro forma Adjusted and Recurring EBITDA reached R$338.8 million in 2Q26, with a margin of 47.4%, considering 100% of the operation. Despite the pressure from lower dissolving wood pulp prices and foreign exchange effects in the year - over-year comparison, shipped volumes remained stable versus 2Q25, sustaining robust margins and reflecting the operational maturity achieved by the joint venture. METALS & SAN. WARE Sales volume totaled 3,625 thousand units in 2Q26, down 19.2% year -over- year, reflecting the division’s profitability-focused strategy through pricing and mix management. Net Revenue amounted to R$471.3 million in 2Q26, remaining broadly stable versus 2Q25 despite lower shipped volumes. Adjusted and Recurring EBITDA reached R$55.6 million in 2Q26, with a margin of 11.8%, reflecting the continued execution of the division’s profitability enhancement initiatives. TILES Sales volume totaled 4,221.4 thousand square meters in 2Q26, broadly stable versus 2Q25 ( -0.3%), reflecting productive capacity adjustments and the closure of the Urussanga facility in a still challenging ceramic tiles market. Adjusted and Recurring EBITDA reached R$6.7 million in 2Q26, with a margin of 3.5%, supported by industrial productivity gains and disciplined management of selling expenses, while market conditions remain challenging.
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Quarterly Results 2Q26 2 Market Scenario The second quarter of 2026 continued to be marked by a challenging macroeconomic environment, albeit with gradual signs of disinflation and adjustments in monetary conditions. Internationally, the IMF now projects global growth of 3.1% in 2026 and 3.2% in 2027 , remaining below pre-pandemic averages amid heightened geopolitical uncertainty, commodity price pressures, and predominantly downside risks to global economic activity. In Brazil, inflation showed signs of moderation towards the end of the quarter, with IPCA rising 0.16% in June, compared to 0.58% in May, accumulating increases of 3.36% year-to-date and 4.64% over the last twelve months. Despite this marginal improvement, inflation remained above the midpoint of the target range, reinforcing the need for caution in monetary policy management. In this context, Copom reduced the Selic rate to 14.25% per year in June, continuing the monetary calibration cycle, while reiterating the need to maintain a contractionary monetary policy for a prolonged period in light of elevated inflation expectations and a more uncert ain external environment. As a result, financial conditions remained restrictive, particularly for household credit and sectors more sensitive to the economic cycle. Despite this backdrop, the residential real estate market continued to demonstrate resilience during the first half of 2026, supported primarily by end -market demand. According to ABRAINC -Fipe indicators released in May, new home sales increased by 11.4% between January and April compared to the same period of the previous year, with the Minha Casa, Minha Vida (MCMV) program remaining the main highlight, advancing 17.1% in units sold. In contra st, launches declined by 3.7% during the period, reflecting greater selectivity among developers in an environment where credit conditions remain restrictive, although the Middle and High-Income (MAP) segment recorded a 14.6% increase in new units launched. Final inventory levels remained healthy, equivalent to 11.7 months of sales, indicating a balanced supply -demand dynamic. This performance, combined with the creation of 154.4 thousand formal jobs in the Construction sector year-to-date through May, reinforces the continuity of construction activity, albeit at a more selective pace. In the building materials value chain, indicators pointed to a gradual, albeit uneven, recovery. The ABRAMAT Index reported a 0.8% increase in inflation -adjusted industry revenues in May compared to April, with basic materials, a segment more closely linke d to construction activity, growing by 1.6%. Nevertheless, the sector still accumulated a 3.7% decline during the first five months of the year and a 3.8% decrease over the last twelve months. Finishing materials remained under greater pressure, reflecting the effects of elevated interest rates, cautious consumer behavior, and the still gradual recovery of the home improvement retail market. Housing programs and initiatives aimed at home renovation and improvement continue to represent potential demand driv ers; however, their impact on finishing -related categories remains in the process of maturing. In the furniture value chain, the environment also remained mixed. According to ABIMÓVEL, production showed a temporary recovery in March following a weaker start to the year; however, the first quarter still recorded a 1.6% decline in furniture and mattre ss production and a 3.4% decrease in retail volumes. For 2026, IEMI (Institute for Industrial Studies and Marketing) projects moderate growth, with volume production expected to increase by 0.5% and retail sales by 1.5%. Nevertheless, persistent inflation, elevated interest rates, household indebtedness, and low willingness to invest continue to limit a broader market recovery. Internally, the Company continues to observe resilient demand for wood panels, supported by consistent sell-out levels and the absence of significant inventory buildup across the value chain, while closely monitoring the effects of housing and renovation programs on categories related to finishing products and home improvement. Within this context, we begin our analysis by business division.
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Quarterly Results 2Q26 3 In the Ceramic Tiles Division, the industry continues to face a challenging environment, characterized by (i) high levels of installed capacity underutilization, (ii) declining production volumes, (iii) downward pressure on market prices, and (iv) inventories remaining at elevated levels. According to ANFACER data, the Brazilian ceramic tiles market totaled 17.6 million square meters in May 2026, representing a decline of 7.7% compared to the previous month and 17.4% versus May 2025. The wet-process segment, which represents Dexco’s core area of activity, continued to underperform the broader market, accumulating a decline of 8.8% through May 2026 compared to the same period of the previous year. ANFACER estimates indicate that total ceramic tiles sales in Brazil are expected to decline by approximately 4.3% in 2026, reinforcing the expectation of a market that remains broadly challenged throughout the year. In the Metals & Sanitary Ware Division , the competitive environment remains challenging, with price increases being passed through the value chain, driven by higher copper prices in Metals and elevated freight and natural gas costs in Sanitary Ware. In Metals, the market contracted year -to-date compared to 2025, although the second quarter performed better than the first in terms of market size, despite remaining below expectations. Internal analyses indicate that this slowdown is primarily associated with the successive price increases impleme nted across the industry, supporting expectations of gradual market normalization throughout the year. In Sanitary Ware, market conditions remain more pressured, reflecting the greater sensitivity of discretionary consumption to elevated interest rates. Preliminary indicators suggest that this pressure is more conc entrated in the retail channel, while the engineering channel has proven more resilient, a trend the Company continues to monitor closely. Additionally, a down-trading movement continues to be observed across the sector, with part of demand shifting toward lower value -added segments as prices increase. This trend has been partially offset by market share gains in higher value-added segments, although there is a natural limit to such compensation should the migration toward lower-priced alternatives intensify. In the Wood Division, the panels market maintained the healthy conditions observed at the beginning of the year, with total market volumes increasing by 2.5% in the first half of 2026 compared to the same period of 2025. Demand for both MDF and MDP continued to expand, with b oth segments operating close to full capacity. The retail pricing environment remained more stable following the recent round of price adjustments, while the export market continued to show lower relative attractiveness, pressured by higher freight rates and international tariffs. On the cost front, volatility in methanol, urea, and oil prices remained significant throughout the quarter. Within this context, the industry continues to closely monitor product mix optimization, logistics competitiveness, and t he efficient management of its industrial and forestry footprint. Despite the challenging macroeconomic environment, characterized by elevated interest rates, selective consumption, and cost pressures, Dexco continued to strengthen its operating performance during the second quarter of 2026, building on the progress achieved since the beginning of the year. In the Wood Division, the domestic market remained strong, supported by healthy demand and rising prices, although significantly impacted by input cost pressures throughout the quarter. In Metals & Sanitary Ware, the Company substantially increased price c apture and profitability, delivering strong margin expansion and EBITDA growth despite lower volumes and a more selective market environment driven by elevated interest rates. In the Ceramic Tiles Division, industry conditions remained challenging; however, initiatives focused on productive capacity adjustments, productivity gains, and expense discipline contributed to the recovery of Adjusted and Recurring EBITDA to positive levels during the quarter. This performance reflects the continued execution of initiatives under the Company’s control, including commercial discipline, operational efficiency, and portfolio management, in a market environment that continues to require caution, particularly in Cera mic Tiles and amid the risk of consumption shifting
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Quarterly Results 2Q26 4 toward lower value -added categories in Metals & Sanitary Ware. The Company remains focused on portfolio profitability, operational efficiency, and cash generation throughout 2026.
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Quarterly Results 2Q26 5 Consolidated Financial Results (1) Pro Forma information considers adjustments for non-recurring events detailed in the Appendix to this material; (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): operating performance measure in accordance with CVM Resolution No. 156/22 ; (3) Extraordinary Events detailed in the Appendix to this material ; (4) Adjusted Recurring EBITDA: calculated based on EBITDA in accordance with CVM Resolution No. 156/22, adjusted for accounting a nd non -cash events and excluding extraordinary events, in order to more accurately reflect the Company’s operating cash generation potential; (5) Includes Dexco’s share in LD Celulose; (6) Current Ratio: Current Assets divided by Current Liabilities. Indicates the amount in BRL available to cover each BRL 1.00 of short-term obligations; (7) Net Debt: Total Financial Debt minus Cash and Cash Equivalents; (8) Financial leverage calculated based on the recurring EBITDA of the last twelve months, adjusted for accounting and non-cash events; (9) ROE (Return on Equity): performance measure calculated as the annualized Net Income for the period divided by average Shareholders’ Equity; (10) Earnings per Share is calculated by dividing the profit attributable to the Company’s shareholders by the weighted average number of common shares outstanding during the period, excluding treasury shares.
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Quarterly Results 2Q26 6 Consolidated Financial Highlights Net Revenue In the second quarter of 2026, Consolidated Net Revenue reached R$2,231.5 million, representing a 5.2% increase compared to 2Q25. This performance was primarily driven by the strong results of the Wood Division, which combined higher shipment volumes, pric e increases, and a more favorable sales mix. In Metals & Sanitary Ware, higher unit net revenue largely offset the decline in volumes, while the Ceramic Tiles Division remained pressured by a competitive market environment and less favorable pricing and mix dynamics. By division, Net Revenue increased by 9.6% in Wood, declined by 0.6% in Metals & Sanitary Ware, and decreased by 11.5% in Ceramic Tiles compared to 2Q25. Unit net revenue increased in the Wood (+4.2%) and Metals & Sanitary Ware (+23.0%) divisions compared to 2Q25, reflecting price adjustments and a more favorable product mix. In the Ceramic Tiles Division, unit net revenue declined by 11.3%, highlighting the competitive and commercial pressures that continue to affect the sector. On a sequential basis, Consolidated Net Revenue increased by 10.6% compared to 1Q26, driven by the performance of all three business divisions. In this context, Net Revenue in the Wood Division increased by 12.8%, supported by higher shipment volumes, price increases, and a more favorable product mix. Metals & Sanitary Wa re reported growth of 3.7%, despite the seasonal decline in volumes, sustained by higher unit net revenue. Meanwhile, the Ceramic Tiles Division recorded a 10.3% increase in Net Revenue, pr imarily driven by the recovery in shipped volumes resulting from productive capacity adjustments and inventory reductions, although unit net revenue remained below the level reported in the previous quarter. Net Revenue in the domestic market totaled R$1,844.4 million during the quarter, representing a 5.7% increase compared to 2Q25, while Net Revenue in the foreign market amounted to R$387.2 million, reflecting growth of 3.0% over the same period. During the quarter, domestic dynamics remained the main driver of consolidated revenue, particularly in the Wood Division, where domestic Net Revenue increased by 10.8%, supported by higher volumes, price increases, and a more favorable product mix. In Metals & Sanitary Ware, the stability of domestic revenue reflected the offsetting effects of lower volumes and higher unit net revenue. In the foreign market, despite foreign exchange volatility, higher freight costs, and renewed uncertainty arising from conflicts in t he Middle East, revenue growth in the Wood Division more than offset the declines recorded in Metals & Sanitary Ware and Ceramic Tiles.
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Quarterly Results 2Q26 7 Biological Assets Fair Value Variation and Depletion The results related to biological assets reflect not only the physical development of the forests but also updates to the economic and accounting assumptions used in their valuation. In this context, fair value changes and depletion are relevant components for the proper interpretation of the Company's performance, as they affect reported earnings for the period, although they do not necessarily represent immediate cash impacts. To facilitate the understanding of this dynamic, we present below the concepts of biological assets and biological assets fair value, as well as how these elements interact within the financial statements. A biological asset consists of standing forests under Dexco's control, primarily composed of eucalyptus plantations intended to supply wood for the Company's industrial operations and, secondarily, for sale to third parties. As a living asset, its economic value changes throughout the forestry cycle because of tree growth, expected productivity, and market conditions and wood prices. The fair value of biological assets corresponds to the carrying amount assigned to standing forests at the balance sheet date. This value is estimated based on the present value of the expected cash flows from the timber to be harvested, considering assump tions such as volume, productivity, plantation age, harvesting plans, standing timber market prices, selling costs, and discount rates. Fair value changes do not generate cash in the period in which they are recognized; they are realized when the timber is effectively harvested and sold. Depletion, in turn, represents the accounting write -down of the carrying number of trees effectively harvested during the period when they cease to be recognized as Biological Assets and become part of the Company's inventories. This amount does not exclusively reflect historical planting and cultivation costs incurred in the past; it also incorporates fair value effects previously recognized for the same trees throughout their growth cycle. As a result, depletion in each quarter reflects both the historical forestry formation costs and the cumulative appreciation or depreciation recognized through the fair value methodology up to the harvest date. Neither of these components, nor the fair value variation recognized in the current period, represent cash movements at the time of accounting recognition. Due to the timber price dynamics observed over recent years, Dexco has periodically adjusted the value of its biological assets to better reflect prevailing market conditions. The fair value calculation considers factors such as market and transaction pric es, demand levels, and forestry productivity, reflecting the continuous enhancement of the Company's biological asset valuation governance. To improve transparency, Dexco discloses the effects of price, growth/volume, depletion, and other assumption changes. In 2Q26, the Fair Value Variation of Biological Assets was positive at R$40.9 million, an increase of 8.9% compared to 1Q26, in line with the stability of timber prices observed across the regions monitored by the Company during the quarter. On a year -over-year basis, the amount was 43.4% lower than in 2Q25 (R$72.2 million). Biological asset depletion totaled R$84.9 million in 2Q26, decreasing 44.1% compared to 2Q25 and 13.1% compared to 1Q26. The variation primarily reflects lower timber sales volumes during the period ( -16% versus 2Q25), as the comparable quarter had been bo osted by significant one -off sales to specific customers, resulting in a higher comparison base. It is reiterated that the Fair Value Variation of Biological Assets and depletion are accounting effects with no impact on the Company’s cash flow at the time of recognition, with cash realization occurring upon the harvesting and/or sale of timber.
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Quarterly Results 2Q26 8 Cost of Goods Sold Pro forma Cash Cost, corresponding to Cost of Goods Sold net of depreciation, amortization, depletion, and biological asset fair value variation, totaled R$1,322.6 million in 2Q26, representing a 2.1% increase compared to 2Q25 and an 11.5% increase versus the previous quarter. The increase in Pro forma COGS reflects inflationary pressures on key inputs such as methanol, urea, and oil, which preceded the full capture of price adjustments implemented during the quarter, temporarily pressuring the cost structure ahead of the normalization expected in the coming periods. As a proportion of Net Revenue, Pro forma COGS represented 59.3% in 2Q26, a reduction of 1.8 percentage points compared to 2Q25, reflecting Net Revenue growth (+5.2%) outpacing the increase in cash costs during the period. On a sequential basis, however, P ro forma COGS increased by 0.6 percentage points versus 1Q26, in line with the input cost pressures observed during the quarter. Pro forma Gross Profit totaled R$568.3 million in 2Q26, with a margin of 25.5%, representing an expansion of 0.9 percentage points compared to 2Q25, supported by fixed -cost dilution and the combination of pricing and mix improvements across the business di visions. Sequentially, margin declined by 2.0 percentage points versus 1Q26, reflecting greater input cost pressures during the period. Compared to the previous quarter, results were also impacted by the exclusion, from cash COGS, of a non-recurring event totaling R$18.3 million related to the closure of the Urussanga Ceramic Tiles facility (RC4), which had no equivalent event in 1Q26. It is important to note that this item, together with the exclusions related to depreciation, amortization, depletion, and biological asset fair value variation, does not represent a recurring cash effect, although it impacts the comparability of reported accounting results between periods. (1) See Note (1) on the previous page (Consolidated Financial Highlights); (2) Pro Forma Gross Margin is calculated as Pro Forma Gross Profit divided by Pro Forma Consolidated Net Revenue. Selling Expenses Pro forma Selling Expenses totaled R$315.9 million in 2Q26, representing an increase of 3.1% compared to 2Q25 and 11.9% versus the previous quarter. The year -over-year increase reflects higher shipment volumes in the Wood Division during the period, which naturally led to higher variable selling expenses associated with sales activities. Sequentially, the increase was primarily driven by the concentration of trade shows and advertising and promotional investments during the second quarter, particularly in t he Ceramic Tiles and Metals & Sanitary Ware divisions, with part of these expenditures having been postponed from 1Q26. As a percentage of Net Revenue, Pro forma Selling Expenses represented 14.2% in 2Q26, a slight reduction of 0.3 percentage points compared to 2Q25, reflecting revenue growth outpacing the increase in expenses. Compared to 1Q26, however, Selling Expenses increased by 0.2 percentage points, reflecting the seasonal concentration of commercial and marketing investments during the quarter.
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Quarterly Results 2Q26 9 (1) Eventos não recorrentes detalhados no Anexo deste relatório. General and Administrative Expenses Pro forma General and Administrative Expenses (G&A) totaled R$74.7 million in 2Q26, representing a reduction of 4.5% compared to 2Q25 and 1.7% versus 1Q26. This performance reflects the continued execution of initiatives aimed at simplifying the organizati onal structure and enhancing administrative efficiency across the Company. As a percentage of Pro forma Net Revenue, G&A Expenses represented 3.3% in the period, compared to 3.7% in 2Q25 and 3.8% in 1Q26. On a year-to-date basis, Pro forma General and Administrative Expenses totaled R$150.7 million, representing a 2.5% reduction compared to 1H25, and accounted for 3.5% of Pro forma Net Revenue, compared to 3.8% in the same period of the previous year. EBITDA Dexco’s Consolidated Adjusted and Recurring EBITDA totaled R$547.4 million in 2Q26, representing an increase of 23.6% compared to 2Q25 and 14.5% versus 1Q26, with a margin of 24.5% (+3.7 p.p. vs. 2Q25 and +0.9 p.p. vs. 1Q26). Performance in 2Q26 was once again supported by the Wood Division, which reported Adjusted and Recurring EBITDA of R$485.1 million, representing growth of 13.4% compared to 2Q25 and reaffirming the Company’s operational consistency in the panels business, even amid a scenario of increasing production costs. The Metals & Sanitary Ware Division also significantly increased its contribution to results, delivering Adjusted and Recurring EBITDA of R$55.6 million in the quarter, supported by commercial discipline and price adjustments, with improved profitability despite a lower-volume environment. The Ceramic Tiles Division reported Adjusted and Recurring EBITDA of R$6.7 million in 2Q26, reversing the slightly negative result recorded in 1Q26. Performance was driven by industrial productivity gains and disciplined management of selling expenses, whi le also benefiting from non -recurring effects recorded during the period. The table below presents the EBITDA reconciliation, prepared in accordance with CVM Resolution No. 156/22. Based on this result, the Company applies two adjustments to better reflect its operating cash generation potential: the exclusion of non -cash accoun ting effects and the removal of extraordinary events. The resulting indicator, aligned with market best practices, is presented below.
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Quarterly Results 2Q26 10 (1) Eventos não recorrentes detalhados no Anexo deste relatório; (2) Inclui a parte Dexco da LD Celulose. Financial Results In 2Q26, net financial results were negative at R$197.9 million, representing an improvement of 7.1% compared to 1Q26. This performance reflects the early benefits of the Company’s deleveraging trajectory on interest expenses, partially offset by the persistence of a high -interest-rate environment. Financial income totaled R$108.4 million, representing an increase of 41.4% compared to 2Q25, supported by a higher average cash balance during the period. Sequentially, financial income declined by 17.7% versus 1Q26. Financial expenses amounted to R$306.3 million in the quarter, increasing by 11.3% year -over-year, reflecting the maintenance of financial indexers at elevated levels. Compared to 1Q26, however, financial expenses declined by 11.1%, consistent with the R$1 88.2 million reduction in net debt recorded during the period. Excluding the effects of non -recurring events recorded in 2Q25 (R$26.5 million), pro forma net financial result in 2Q26 was negative by R$197.9 million, representing an improvement of 12.1% compared to the pro forma result reported in 2Q25 and highlighting the positive effects of liability management and capital structure optimization throughout the period. (1) Eventos não recorrentes detalhados no Anexo deste relatório. Net Income In 2Q26, the Company reported Net Income of R$14.9 million. Recurring Net Income totaled R$33.8 million, representing growth of 13.0% compared to 2Q25 and reflecting the progress achieved through initiatives aimed at enhancing competitiveness, operational efficiency, and business profitability. The quarter’s performance reinforces the Company’s increased earnings generation capacity, supported by positive contributions from the Wood, Metals & Sanitary Ware, and Ceramic Tiles divisions. Reported net income for the period was impacted by positive net non -recurring effects totaling R$18.9 million, primarily related to the monetization of forestry assets and expenses associated with the discontinuation process of the Urussanga (SC) Ceramic T iles facility, including the impairment charge
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Quarterly Results 2Q26 11 recognized in connection with the future divestment of the operation. These effects were excluded for the purpose of calculating recurring net income. Compared to previous periods, consolidated results reflected the lower contribution from LD Celulose through the equity method, mainly due to the more challenging environment for international dissolving wood pulp (DWP) prices and the accounting effects as sociated with foreign exchange fluctuations on U.S. dollar-denominated assets. Additional information on LD Celulose’s performance is presented in a dedicated section of this report. (1) Eventos não recorrentes detalhados no Anexo deste relatório. Cash Flow Dexco reported Operating Free Cash Flow of R$455.1 million in 2Q26, driven by stronger operating cash generation, a favorable working capital performance, and lower project-related investments. Adjusted and Recurring EBITDA reached R$547.4 million during t he quarter, representing growth of 23.6% compared to 2Q25, while project-related Capex was reduced by 16.8%, in line with the conclusion of the 2021–2025 Investment Cycle. Working capital contributed positively by R$206.5 million during the period, reflecting cash inflows from the timber trading operation, in addition to the management of operating assets and liabilities. As a result, Operating Free Cash Flow reached R$455.1 million in the quarter. After financial cash outflows during the period, Total Free Cash Flow remained positive at R$120.7 million. In the first half of 2026, Operating Free Cash Flow totaled R$681.7 million, while Total Free Cash Flow reached R$355.9 million, reflecting stronger operating performance, disciplined capital allocation, and the continued strengthening of the Company’s cash generation capacity. (1) Cash Convertion Ratio: Fluxo de Caixa Livre Sustaining / EBITDA Ajustado e Recorrente. Corporate Debt The Company closed 2Q26 with consolidated gross debt of R$7,812.9 million, a reduction of R$641.6 million compared to 1Q26 and an increase of R$852.1 million versus 2Q25. This performance primarily reflects the Company’s cash generation throughout the period and the active management of its capital structure. Net debt totaled R$5,135.1 million at the end of the quarter, representing a reduction of R$188.2 million compared to 1Q26 and R$364.2 million versus 2Q25. This performance reflects stronger operating cash
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Quarterly Results 2Q26 12 generation, disciplined capital allocation, and lower investment intensity following the completion of the 2021–2025 Investment Cycle. As a result, financial leverage, measured by the Net Debt to Adjusted and Recurring EBITDA (L TM) ratio, closed the quarter at 2.72x, compared to 2.99x in 1Q26 and 3.39x in 2Q25. The improvement recorded during the period reflects the continued progress of the Company’s deleveraging trajectory, supported by stronger operating cash generation and higher cash conversion over recent quarters. The debt profile remained concentrated in the long term, which represented 87.5% of gross debt at the end of the quarter, while 12.5% was concentrated in the short term. Cash and cash equivalents totaled R$2,677.8 million, reinforcing the Company’s liquidi ty position. In addition, the cash balance remains sufficient to fully cover all short-term debt maturities. These results reinforce Dexco’s strategy of strengthening its capital structure, supported by operating cash generation, disciplined capital allocation, and the gradual reduction of financial leverage. *The chart reflects principal amortization only and excludes interest payments and derivative instruments. Strategic Management and Investment The Company’s sustaining Capex totaled R$205.5 million in 2Q26, representing an increase of 4.4% compared to 2Q25. Investments remained focused on maintaining operations, ensuring asset reliability, and supporting the operational efficiency of the business units. In the first half of 2026, sustaining Capex totaled R$371.3 million, representing growth of 1.2% compared to 1H25. Project-related investments amounted to R$88.3 million in 2Q26, representing a reduction of 16.8% compared to 2Q25. In the first half of the year, project -related disbursements totaled R$108.7 million, declining 59.2% versus 1H25, reflecting the conclusion of the 2021–2025 Investment Cycle and the lower investment intensity observed during the period. Within this context, the Company remains focused on disciplined capital allocation and on capturing returns from investments made in recent years, prioritizing strategic initiatives with strong value creation and profitability potential, in line with Dexco’s new operating cycle.
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Quarterly Results 2Q26 13 Capital Markets The Company closed 2Q26 with a market capitalization of R$4,512.1 million, based on the closing share price of R$4.97 as of June 30, 2026. Dexco’s shares (B3: DXCO3) ended the period with a 12.3% decline compared to 2Q25, while the Ibovespa Index recorded an appreciation of 23.9% over the same period. During 2Q26, a total of 294,613 trades were executed with DXCO3 shares in the B3 spot market, resulting in a financial trading volume of approximately R$775.8 million, corresponding to an average daily trading volume of R$12.7 million. .
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Resultado Trimestral 2T26 14 Wood Panels (1) Pro Forma information for the Wood Division did not include any non-recurring events in the periods presented (2Q26, 2Q25 and 1Q26); (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): operating performance measure calculated in accordance with CVM Resolution No. 156/22 ; (3) Non-recurring events are detailed in the Appendix to this material.
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Resultado Trimestral 2T26 15 According to data from Ibá – Brazilian Tree Industry Association, the panels market maintained healthy fundamentals in 2Q26, with elevated levels of manufacturing capacity utilization. Compared to 2Q25, the domestic market expanded, with MDF growing by 4.4 % and MDP by 6.2%, reinforcing the resilience of domestic demand, particularly associated with the furniture industry. In contrast, the foreign market remained more challenging, declining by 16.7% during the period, reflecting heightened uncertainty in the international environment and the reallocation of demand toward the domestic market. The Wood Division delivered solid commercial performance in 2Q26, supported by higher shipment volumes and the continued capture of price increases, reinforcing the resilience of demand and the effectiveness of the commercial discipline adopted over recent quarters. A profitability-focused approach, supported by disciplined channel, mix, and inventory management, contributed to preserving revenue quality in an environment still characterized by selective demand and greater competitive rationality. As anticipated in the previous quarter, cost pressures became more pronounced in 2Q26, particularly in raw materials and logistics, partially offsetting the commercial gains achieved during the period. Even so, the panels business remained highly profitabl e, supported by the combination of commercial discipline, price capture, operational management, and expense control. In addition, the Division benefited from positive contributions from forestry businesses, particularly timber commercialization activities , which further supported EBITDA generation during the quarter. Selling, General and Administrative expenses increased in line with the higher level of activity and continue to be closely monitored with a focus on efficiency, preserving the Division’s operating leverage and profitability. The Division reported Adjusted and Recurring EBITDA of R$485.1 million in 2Q26, representing growth of 13.4% compared to 2Q25, with an Adjusted and Recurring EBITDA margin of 30.9%. This performance reflects the combination of higher shipment volumes, unit net revenue maintained at elevated levels, and positive contributions from forestry businesses, despite the greater cost pressures observed throughout the quarter. Shipments totaled 791.7 thousand cubic meters, representing an increase of 5.2% compared to 2Q25, driven by higher sales of standard and coated panels. Net Revenue reached R$1,570.1 million, up 9.6% year -over-year, while unit net revenue remained at elevat ed levels, reaching R$1,983 per cubic meter and reinforcing the quality of the Division’s revenue. Unit Cash Cost amounted to R$1,118 per cubic meter in 2Q26, representing an increase of 4.2% compared to 2Q25 and reflecting the materialization of cost pressures related to raw materials and logistics. Even so, the Division reported Pro forma Gross Profit of R$388.1 million, with a gross margin of 24.7%, demonstrating the operation’s ability to absorb part of these pressures through disciplined operational and commercial management.
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Resultado Trimestral 2T26 16 Within this context, the Wood Division continues to play a key role in the Company’s earnings generation. The quarter’s performance highlights the operation’s ability to sustain strong results even in a more challenging cost environment, reinforcing the ex ecution capabilities and management discipline that have historically characterized the business across different market cycles.
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Resultado Trimestral 2T26 17 Dissolving Wood Pulp LD Celulose maintained high asset utilization levels in 2Q26, closing the quarter with sales volume of 157.6 thousand tons, in line with 2Q25. In the first half of 2026, sales totaled 325.9 thousand tons, representing growth of 6.7% compared to 1H25. Net Revenue reached R$714.6 million in 2Q26, representing a decline of 18.3% compared to 2Q25, reflecting a less favorable pricing environment for dissolving wood pulp throughout the period, as well as the effects of foreign exchange dynamics observed duri ng the quarter. In the first half of 2026, Net Revenue totaled R$1,472.2 million, down 14.3% versus 1H25. Within this context, Adjusted and Recurring EBITDA totaled R$338.8 million in 2Q26, with a margin of 47.4%, remaining at robust levels despite the less favorable pulp pricing environment. In the first half of the year, Adjusted and Recurring EBITDA reached R$707.0 million, with a margin of 48.0%. Net Income totaled R$58.1 million during the quarter, of which R$28.4 million was attributable to Dexco and recognized through the equity method. In the first half of 2026, the portion attributable to Dexco totaled R$109.2 million. Net financial result was negative by R$211.2 million during the period. The equity income recognized by Dexco from its investment in LD Celulose was impacted by volatility in deferred income taxes recorded by the joint venture during the period. This effect stems from the specific nature of the operation: LD Celulose’s assets are measured in U.S. dollars, its functional currency, while the corresponding tax basis, for purposes of calculating corporate income taxes and social contribution taxes, is determined in Brazilian reais. Monthly fluctuations in the exchange rate affect the temporary difference between the carrying amount of these assets and their tax basis, leading to the recognition or reversal of deferred income taxes in proportion to such variations. This is an accounting effect with no impact on the Company’s operating cash generation, as it does not correspond to taxes effectively paid or recovered during the period. However, as it directly affects the income tax and social contribution line in the i ncome statement, it consequently impacts reported Net Income. This effect is expected to normalize over time as the temporary difference reverses through the realization of the underlying assets. Cash position closed the quarter at US$139.9 million, representing an increase of 60.3% compared to 2Q25, while gross debt totaled US$925.1 million, remaining broadly stable year-over-year. Despite a more challenging pricing environment for dissolving wood pulp, LD Celulose maintained solid operational performance and robust margins, continuing to provide a meaningful contribution to the Company’s results.
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Resultado Trimestral 2T26 Metals & Sanitary Ware (1) Pro Forma information for the Metals and Sanitary Ware Division did not include any non -recurring events in the periods presented (2Q26, 2Q25 and 1Q26); (2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): operating performance measure calculated in accordance with CVM Resolution No. 156/22; (3) Non-recurring events are detailed in the Appendix to this material.
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Resultado Trimestral 2T26 The Metals & Sanitary Ware market maintained the moderation trend observed throughout the first half of 2026, according to the Company’s internal analyses. The Metals segment recorded a 3.6% decline year-to-date compared to the same period of 2025, while Sanitary Ware contracted by 8.6% over the same comparison base. Cost pressures, particularly from copper in Metals and freight and natural gas in Sanitary Ware, combined with successive price increases implemented across the industry throughout the semester, continued to be the main factors contributing to softer demand. A down-trading trend also continued to be observed across the sector, with part of consumption migrating toward lower value-added segments as prices increase. This movement has been partially offset by market share gains in higher value-added categories, a lthough there is a natural limit to such compensation should migration toward lower-priced alternatives intensify. Internally, management continues to believe that the slowdown primarily reflects the price adjustments implemented across the industry, supporting expectations of a gradual recovery throughout the second half of the year. External factors, such as interest rate levels and consumer indebtedness, however, continue to be closely monitored. The Metals & Sanitary Ware Division delivered a meaningful improvement in profitability during 2Q26, despite operating in a more selective volume environment. The Division reported shipments of 3,625 thousand units in 2Q26, representing a decline of 19.2% compared to 2Q25 and 4.8% versus the previous quarter. Part of this reduction reflects a base effect, as the Paraíba Sanitary Ware facility, which was closed in July 2025, accounted for approximately 5% of the Division’s volume in 2Q25. Excluding this effect, the comparable volume decline was approximately 15.0%, reflecting the deliberate strategy of prioritizing profitability over volume through price adjustments and greater commercial selectivity focused on higher value -added products. During the period, the Company’s market share reached 49.5% in Metals and 34.9% in Sanitary Ware. Pro forma Net Revenue totaled R$471.3 million in 2Q26, remaining broadly stable compared to 2Q25 ( - 0.6%) and increasing 3.7% versus 1Q26, despite the significant decline in volumes. This performance was supported by higher unit net revenue, which reached R$130.01 per unit (+23.0% year-over-year and +9.0% quarter-over-quarter). In Metals, price adjustments more than offset lower volumes and cost pressures during the period, while in Sanitary Ware, performance primarily reflected a more favorable product mix, with more moderate price increases given the segment’s lower elasticity.
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Resultado Trimestral 2T26 Pro forma Unit Cash Cost reached R$84.53 per unit in 2Q26, representing an increase of 10.7% compared to 2Q25 and 7.3% versus the previous quarter. This variation was primarily concentrated in the Metals segment, reflecting copper cost pressures and lower fixed-cost dilution resulting from production adjustments implemented to optimize inventory levels. In Sanitary Ware, on the other hand, unit costs improved, benefiting from productivity and quality gains. Pro forma Selling Expenses totaled R$89.9 million in 2Q26, representing a 5.2% reduction compared to 2Q25, reflecting the Company’s lower participation in industry events relative to the previous year. Compared to 1Q26, however, Selling Expenses increased by 7.9%, driven by the concentration of trade shows and advertising and promotional investments during the early part of the second quarter. Pro forma General and Administrative Expenses totaled R$31.8 million, increasing by 7.2% year -over- year and 16.4% quarter-over-quarter. In the Metals segment, copper remained the main source of cost pressure in 2Q26, reflecting a structural trend associated with global commodity market dynamics rather than temporary market factors. The Company successfully captured the corresponding price pass-through during the quarter. Against this backdrop, the Division’s Adjusted and Recurring EBITDA totaled R$55.6 million in 2Q26, with a margin of 11.8%, representing a significant improvement compared to 2Q25 (R$8.6 million and a margin of 1.8%) and a meaningful increase versus 1Q26 (R$39.5 million and a margin of 8.7%). In the first half of 2026, Adjusted and Recurring EBITDA increased from R$16.8 million to R$95.1 million. Performance was primarily driven by the combination of: (i) price recomposition; (ii ) improvement; (iii) operational efficiency gains; and (iv) disciplined management of selling expenses, even within a more selective volume environment.
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21 Resultado Trimestral 2T26 Tiles 1) Pro Forma information considers adjustments for non-recurring events detailed in the Appendix to this material; (2) Pro Forma Selling Expenses and Pro Forma General and Administrative Expenses: adjusted for non -recurring events detailed in the Appendix to this material ; (3) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): operating performance measure in accordance with CVM Resolution No. 156/22; (4) Non-recurring Events detailed in the Appendix to this material.
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22 Resultado Trimestral 2T26 According to ANFACER data, the wet -process ceramic tiles market, Dexco’s core area of activity, closed the first five months of 2026 with an 8.7% decline compared to the same period of 2025, signaling a market that remains under pressure. Industry idle capacity reached 35.0% in 2Q26 (65.0% utilization), a level that, while still elevated, represents a slight improvement compared to the 36.9% idle capacity recorded in 1Q26. Within this context, Dexco’s Ceramic Tiles Division reported shipments of 4,221.5 thousand square meters in 2Q26. Volumes remained broadly stable compared to 2Q25 ( -0.3%) and increased by 15.5% versus 1Q26. This performance reflects the realignment between production and underlying demand following productive capacity adjustment measures, particularly the closure of the Urussanga facility (RC4) in May 2026. Nevertheless, market conditions remain challenging and do not yet support expectations of a structural or sustainable volume recovery in the coming quarters Pro forma Net Revenue totaled R$190.1 million in 2Q26, representing a decline of 11.5% compared to 2Q25, but an increase of 10.3% versus 1Q26, following the sequential recovery in shipment volumes. Unit Net Revenue reached R$45.03 per square meter, declining by 11.3% year -over-year and 4.5% quarter - over-quarter, highlighting the still challenging pricing environment in Brazil’s wet -process ceramic tiles market. Pro forma Unit Cash Cost amounted to R$31.13 per square meter in 2Q26, representing a reduction of 9.8% compared to 2Q25 and 11.8% versus 1Q26, reflecting operational efficiency gains driven by productive capacity optimization and improved industrial productivity. Pro forma Selling Expenses totaled R$42.7 million in 2Q26, declining by 7.5% compared to 2Q25, but increasing by 11.1% versus 1Q26, reflecting advertising and promotional expenses initially planned for 1Q26 and postponed to the quarter. Pro forma General and Administrative Expenses totaled R$10.7 million, declining by 31.7% year -over-year but increasing by 24.1% compared to 1Q26. The sequential increase primarily reflects the reversal of profit-sharing provisions and a labor lawsuit relat ed to Cecrisa recorded in 1Q26, which had artificially reduced the comparison base for that quarter. As such, the level reported in 2Q26 is considered representative of the operation’s normalized cost structure. The year -over-year decline, in turn, reflects the absence of a provision related to a civil lawsuit involving Castelatto, which had been recorded in 2Q25 and did not recur in the current period. Adjusted and Recurring EBITDA was positive at R$6.7 million in 2Q26, with a margin of 3.5%, reversing the negative result reported in 1Q26 (negative R$3.5 million and a margin of -2.0%) and exceeding the level recorded in 2Q25 (R$6.1 million and a margin of 2.9%). Supported by industrial productivity gains and disciplined management of selling expenses, the result also
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23 Resultado Trimestral 2T26 benefited from the non -recurring effects previously mentioned and, therefore, should not be interpreted as a sustainable earnings level for the coming quarters. The Division remains committed to a disciplined approach focused on cost austerity and productivity improvement, with the objective of restoring business profitability, in line with the progress observed in recent quarters. The turnaround plan continues to advance, supported by initiatives under the Company’s control, including industrial productivity, fixed-cost discipline, and portfolio optimization. While part of the quarter’s performance reflects non -recurring effects, management remains focused on buil ding a more sustainable profitability profile over the medium term.
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24 Resultado Trimestral 2T26 Attachments Financial Statments – Assets
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25 Resultado Trimestral 2T26 Financial Statments – Liabilities
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26 Resultado Trimestral 2T26 Income Statement
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27 Resultado Trimestral 2T26 Cash Flow Statement
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28 Resultado Trimestral 2T26 Non-Recurring Events Non-Recurring Events (Adjusted and Recurring EBITDA) Non-Recurring Events (Recurring Net Income)