BRAZIL –   Eucatex, one of the largest manufacturers of wooden panels in Brazil, with operations also in the paint and varnish, laminated flooring and doors segments, posted solid results in the second quarter of 2025, with sales reaching BRL 784.1 million, up 13.8% compared to the same period of 2024.

The company’s EBITDA rose 34.4% to BRL 191.5 million, while net profit advanced 31.8% to BRL 88.3 million. EBITDA margin expanded 3.7 percentage points to 24.4%.

In the first half of 2025, Eucatex’s consolidated sales totaled BRL 1.53 billion, a 15% increase over 1H24. EBITDA reached BRL 372.9 million (+35.9%), and net profit climbed 49.4% to BRL 189.2 million.

Growth was driven mainly by the export segment, which surged 40.8% in 2Q25 and 49.1% in 1H25, boosted by higher volumes, price adjustments, and favorable exchange rates. Despite a 6.9% decline in Brazilian MDP/MDF exports overall (according to IBÁ), Eucatex gained market share abroad, supported by new products, customer acquisitions, and expanded inventories in the U.S.

The Furniture Industry and Resale segment grew 8.0% in 2Q25 and 9.6% in 1H25, supported by price increases and a shift toward higher value-added products. Meanwhile, the Construction segment advanced 5.2% in the quarter and 4.5% year-to-date, supported by laminated flooring and paints amid a recovering Brazilian construction market.

However, Eucatex now faces new U.S. trade barriers. While the initial 10% tariff on Brazilian products did not cover wood panels, a subsequent 40% ad valorem tariff is expected to apply to the company’s exports until Section 232 regulatory studies are concluded later this year. The company, which had increased its U.S. inventories significantly, projects temporary challenges but expects tariffs to be realigned across Mercosur suppliers once the studies are completed.

Eucatex emphasized that it will continue its strategy of brand repositioning, focusing on product mix improvement and higher-margin lines, while maintaining sufficient inventories to serve international clients in the short term.