CHILE – Arauco posted revenues of USD 1,531.5 million for the first quarter of 2025 (1Q-2025), reflecting a 7.5% year-over-year decrease compared to the USD 1,654.9 million reported in the same period of 2024.

The decline was mainly driven by reduced sales volumes in the company’s Pulp and Forestry and Wood Products divisions.

Sales from Wood Products reached USD 730.2 million, down 4.5% from the previous year. Overall, the company’s performance was affected by weaker demand and lower pricing conditions across key markets.

EBITDA for the quarter fell 21.7% to USD 348.3 million, with the EBITDA margin declining 4.2 percentage points to 22.7%, from 26.9% a year earlier. This was attributed primarily to reduced volumes and price pressures in core segments.

As a result, Arauco reported a net loss of USD 26.5 million, a sharp turnaround from the USD 100.3 million profit recorded in 1Q-2024 — representing a 126.4% drop in net income.

The company cited challenging market conditions in the pulp and wood sectors and emphasized its continued focus on operational efficiency and market adaptability in the coming quarters.

In 1Q25, Arauco moved forward with key investments in Mexico and Chile. In Mexico, the Vikingo 2.0 project involves a USD 250 million investment to expand MDF production at the Zitácuaro plant. The new line, with a capacity of 300,000 m³, is scheduled to begin operations in 2026. The Alacrán project includes a paper impregnation center with two lines and a melamine line to supply Arauco facilities in Mexico, the U.S., and Canada, backed by a USD 40 million investment. Also in Mexico, a second pallet line at the Guadalajara plant is expected to begin operations in 3Q-2025, bringing total annual capacity to 2.5 million pallets.

In Chile, Arauco is investing USD 100 million in a new OSB production line at the Trupán–Cholguán complex in Ñuble, set to start operations in 2Q-2026, producing raw and siding OSB panels.