Message from management
The year 2025 required resilience and adaptability from companies around the world, and we responded to this situation with discipline and efficiency. Against a backdrop of global economic fluctuations, tariff barriers and structural changes in production chains, the Company’s business model demonstrated strength by maintaining its competitiveness and making progress in key stages of the harvest cycle.
The investments made in recent years—including the ramp-up of paper machines 27 and 28, the development of the Piracicaba II Plant (Figueira Project) and the integration of the forest assets acquired through the Caetê Project—strengthened Klabin’s operational efficiency and enhanced its ability to respond to market conditions. Performance also varied across the Company’s markets throughout 2025.
At the beginning of the year, pulp prices were higher due to lower global supply, but the situation changed in the second half as inventories normalized, seasonal demand in Europe weakened and tariff uncertainties intensified, particularly affecting short-fiber pulp. In the paper markets, paperboard faced more moderate demand and heightened international competition throughout the year, while containerboard benefited from a more balanced global environment, supported by the closure of virgin-fiber capacity in key producing regions. In packaging, the Brazilian market maintained stable volumes, with Klabin’s corrugated cardboard business outperforming the sector, as measured by the Brazilian Paper Packaging Association (Empapel). This performance was driven by the expansion of the customer base through strategic contracts, greater exposure to essential segments such as food, and support from the ramp-up of Piracicaba II, reinforcing integration as a foundation of the Company’s competitiveness.
In 2025, adjusted EBITDA totaled R$7.848 billion, up 7% from 2024. This increase was driven by higher paper and packaging prices, higher sales volumes across all business segments and the depreciation of the Brazilian real against the U.S. dollar. The Company’s sales volume in 2025 increased by 138,000 metric tons compared with the previous year, while net revenue grew 5% over the same period. Despite market instability, the Company’s cash cost remained stable compared with 2024 and within the guidance provided to the market for the year.
Disciplined capital allocation enabled Klabin to reduce its leverage by 0.6x during 2025 and lower the average cost of its dollar-denominated debt from 5.7% to 5.2% per year. In line with our Dividend and Interest on Equity Policy, we distributed R$1.2 billion in shareholder returns, corresponding to a dividend yield of 5.3%. In addition, on December 8, 2025, the Company announced the distribution of R$1.1 billion in interim dividends, to be paid in four equal installments in 2026.
In 2025, we began the succession process for the Paper Director and Chief Financial and Investor Relations Officer positions. The process was conducted transparently, based on a plan coordinated with the Board of Directors and focused on knowledge management and dissemination. These changes reaffirm our commitment to developing and preparing our people for present and future challenges.
Last year, we reviewed our double materiality assessment and integrated it into our risk management and internal controls. This work is already reflected in this report. Throughout the year, Klabin was once again recognized among the global leaders in the ESG agenda: it was included on CDP’s Triple A List for water, forests and climate change management; it scored 86 points in the Dow Jones Best-in-Class Indices, once again featuring in the World Index; and it participated in B3’s Corporate Sustainability Index (ISE) for the 13th consecutive year. In addition, the Company joined the global group of organizations that follow the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD). These achievements and recognitions place Klabin among the global leaders in terms of environmental governance, comprehensive disclosure and significant progress toward environmental resilience.
In January 2025, the Company’s new greenhouse gas emissions reduction targets were approved by the Science Based Targets initiative (SBTi). This commitment, already underway, represents an even more ambitious contribution to mitigating the effects of climate change and reinforcing Klabin’s role in developing a sustainable economy.
The progress made in 2025 underscores Klabin’s strength as well as the consistency of its strategy. The Company remains committed to enhancing its operational efficiency, maintaining disciplined capital allocation and generating sustainable value for its stakeholders.
We thank our employees, investors, customers, suppliers, communities and everyone who places their trust in Klabin’s business and contributes to our journey.
Message from Klabin’s Board of Directors and Executive Board
