Analysis Center

Irani (RANI3) reports 11.6% increase in net revenue in the second quarter of 2025

• • Net revenue of BRL 413.8 million, up 11.6% over 2Q24
  • Adjusted EBITDA from continuing operations of BRL 127.5 million, 6.8% year-over-year growth
  • Net income of BRL 112.1 million, up 168.5% compared to 2Q24
  • Net debt/EBITDA at 2.30x, with 91% of debt classified as long-term
  • Sales volume slightly down in 2Q25: -2.3% in paper and -0.5% in corrugated board, impacted by seasonal factors
  • Share Repurchase Program: over 23 million shares repurchased since 2021 (9.2% of capital stock)
  • ESG Recognition: Irani is simultaneously included in the ISE B3 and ICO2 B3 indices

“Even with the temporary decline in shipped volumes, due to seasonal market dynamics, we managed to implement significant price adjustments, maintaining our strategy focused on margin optimization,” said Lindomar Lima de Souza, Director of the Packaging Business at Irani.

“We are operating in a challenging environment, facing significant cost pressures, especially with OCC, our main raw material, which rose 65% over the past 12 months. Even so, we preserved our margins, a reflection of the strength of our business model and the discipline in executing our strategy,” emphasized Odivan Cargnin, Director of Administration, Finance and Investor Relations at Irani.

Adjusted EBITDA from continuing operations totaled BRL 127.5 million in 2Q25, with a margin of 30.8%. Compared to the second quarter of 2024, in absolute terms, there was a 6.8% growth, supported by higher average prices in the paper and sustainable packaging segments.

The company’s net income reached BRL 112.1 million in the quarter, a 168.5% increase compared to the same period last year. This performance reflects, among other factors, the recognition of a non-recurring IPI tax credit of BRL 18.4 million. Excluding this effect, adjusted net income would be BRL 93.6 million, still a significant increase of 124.4% over 2Q24.

Additionally, the company explains that the fair value variation of biological assets positively impacted quarterly net income, with an increase of BRL 52.2 million compared to 2Q24. This growth was driven by the acquisition of forest areas in the states of Rio Grande do Sul and Santa Catarina, as disclosed in the Material Facts published on March 26 and April 3, 2025. The appreciation of these areas led to a higher fair value variation this quarter.

Irani ended the second quarter with a cash position of BRL 627.1 million, up 3.8% from the end of 2024. The capital structure remains solid, with 91% of debt classified as long-term and 99% denominated in local currency. The net debt/adjusted EBITDA ratio was 2.30x, within the 2.5x limit set in the Company’s Financial Management Policy.

Over the past 12 months, BRL 153.9 million in dividends were distributed, equivalent to BRL 0.66 per share. For 2Q25, the Board proposes the distribution of 25% of net income, as outlined in the Company’s Dividend Distribution Policy, which corresponds to BRL 0.1096 per share.

Summary of 2Q25:

Operating Cash Generation (Adjusted EBITDA FROM CONTINUING OPERATION)

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