Quarterly Results Report 1T25

QUARTERLY

RESULTS

0

1Q25

QUARTERLY RESULTS 1Q25

Pro-forma Adjusted & Recurring EBITDA of R$611.2 million for 1Q25, including the 49.0% of the results from LD Celulose.

WOOD

Sale of 719.5k m³ in 1Q25, a drop of 5.2% vs 1Q24, impacted by scheduled maintenance shutdowns;

Demand for panels remains strong, especially from the furniture industry, supporting high rates of factory utilization over the period;

Adjusted & Recurring EBITDA of R$350.0 million for 1Q25, with a margin of 27.2%, even without any relevant forestry trading in the period.

DISSOLVING WOOD PULP

Pro-forma Adjusted & Recurring EBITDA of R$251.8 million, with a margin of 64.2% in 1Q25 (Dexco's share);

Productivity levels consistent with recent quarters, with a strong operational performance;

Maintenance shutdowns in 1Q24 impacted the base comparison for the period.

METALS & SAN WARE

The Division's volumes fell 8.1% in 1Q25 vs. 1Q24, but with gains in market share in categories offering higher added value;

Increase of 5.6% in Net Revenue vs. 1Q24, ending the period at R$

415.6 million, with gains in the product mix;

Year-on-year increase in Adjusted & Recurring EBITDA, closing out the period at R$8.2 million.

TILES

1.8% uptick in volumes vs 1Q24, reflecting sales and marketing activities aimed at recovering market share;

Adjusted & Recurring EBITDA of R$ -12,5 million for the period, impacted by the costs of ramping up the new factory at Botucatu and extended maintenance shutdowns;

High levels of competition in the sector from price pressures and the level of capacity utilization in the industry.

Sustaining Cash Flow negative of R$142.8 million for 1Q25, a drop of 22.4% versus 1Q24, impacted by a fall in Adjusted & Recurring EBITDA for the period.

Consolidated Financial Results

1. Costs of Goods Sold: 1Q25: Inventory Impairment -Sanitary Ware in Queimados (+) R$4,487k; Costs Related to the Discontinuation of the Electric Showers and Faucets Operation (+) R$3,780 k; Ramp-Up Costs - Botucatu Unit (+) R$15,982k; Selling Expenses: Exit from the Electric Showers and Faucets Business (+) R$5,130k; General and Administrative Expenses: Exit from the Electric Showers and Faucets Business (+) R$125; Cost of Goods Sold: 4Q24: Inventory impairment arising from the exit from Electric Showers and Faucets (+) R$11,129k, Operational Restructuring (+) R$26,323k; 1Q24: Operational Restructuring (+) R$5,257k;

2. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance in accordance with CVM instruction 156/22.

3. Events of an extraordinary nature detailed in the attachment to this material.

4. Pro-forma Adjusted and Recurring EBITDA also includes Dexco's portion of the Recurring EBITDA arising from LD Celulose;

5. Current liquidity: Current assets divided by current liabilities. Indicates the amount available in R$ to cover each R$ of short-term obligations.

6. Net Corporate Debt: Total Financial Debt (-) Cash.

7. Financial leverage calculated on the rolling EBITDA over the last 12 months, adjusted for events of a purely accounting and non-cash nature.

8. ROE (Return on Equity): measure of performance obtained by taking the annualized Net Earnings over the period, annualized, and dividing by Average Net Equity.

   
   
   

9. Net earnings per share is calculated by dividing the earnings attributable to the company's shareholders by the average weighted number of ordinary shares issued during the period, excluding the ordinary shares held by the Treasury.

Marfiet Scenario

The beggining of 2025 has seen a more complex economic environment, both in Brazil and abroad. In Brazil, while economic activity has continued to tick over steadily, sustained by household consumption, which was supported by income and credit stimulus policies. Internationally, protectionist policies adopted by the United States heightened market volatility and exerted pressure on emerging market currencies. Domestically inflation above the target led the Central Bank to maintain the Selic rate at elevated levels, restricting credit and contributing to a slowdown in the construction sector, which entered the year with more cautious expectations. According to the Brazilian Chamber for the Construction Industry (CBIC), the tighter economic scenario has restricted investment and suppressed activity in the sector, with a greater concentration of residential launches in low-income segments, which mainly impacts Dexco's Finishes Division.

Despite the fluctuations, the Brazilian Association for the Construction Materials Industry (ABRAMAT) has projected growth versus the same period in 2024, for both basic (+4.5%) and finished products (+7.6%). On the other hand, the National Association of Ceramic Tile Manufacturers (ANFACER) reported a 1.4% drop in sales versus the previous year, although the wet process segment, in which Dexco operates, showed signs of recovery for the second consecutive quarter.

Regarding the Company's results, the Metals & Sanitary Ware Division showed some recovery versus 1Q24, with an Adjusted & Recurring EBITDA of R$8.2 million and a margin of 2.0%, driven by an uplift in both volumes and Net Revenue - excluding the Electric Showers and Faucets segment - and a richer product mix. Faced with a challenging ongoing scenario, with strong competition and high inventory levels in the sector, the Tiles Division officially started up operations at its new plant, which resulted in higher costs for the division. In addition, the maintenance shutdowns announced at the end of 2024 were extended into mid-January, directly impacting costs and thus the Adjusted & Recurring EBITDA, which came in at R$ -12.5 million for the period, with a margin of -6.2%.

For the Wood Division, market conditions remain favorable, with the industry operating at high levels of factory utilization amid strong demand, driven mainly by the furniture industry. According to data from the Brazilian Tree Industry (Ibá), when taking the domestic and foreign markets together, production of MDP panels grew 1.7% over 1Q24, while MDF grew 2.5% on the same comparison. At Dexco, the Division closed out the period with an Adjusted & Recurring EBITDA of R$350.0 million, at a margin of 27.2%, boosted by the profitability of the wood panels operation - despite the scheduled maintenance shutdowns during the quarter. It should also be noted that in 1Q24 the Company carried out forestry trading that was not repeated in this most recent cycle, which impacts the numbers on a comparative basis.

There are also elements of distortion in the 1Q25 versus 1Q24 comparison for LD Celulose, which carried out scheduled maintenance shutdowns at the beginning of last year, while the shutdowns for 2025 will take place in the quarters to come. With an Adjusted & Recurring EBITDA of R$541.8 million and margin of 64.2% (100% of the operation), the results remained in line with expectations, reflecting efficient cost management and an excellent operating performance.

2025 also marks the end of the investment cycle that began in 2021, with the start-up of projects such as the new Tiles factory and Casa Dexco, which aims to expand the premium portfolio and strengthen the relationship with the final consumer. In addition, standing wood prices have remained stable at high levels, contributing to a more predictable environment and reinforcing the positive outlook for the forestry sector and, consequently, for LD Celulose, which anticipates the continuation of its solid performance. . Thus, even though the macroeconomic scenario remains under pressure due to high interest rates, the Company remains focused on portfolio optimization and on the efficient use of its assets, reaffirming its commitment to sustainable value creation and to the strategic monitoring of developments in the markets in which it operates.

Financial Headlines Net Revenue

For the quarter, Net Revenue totaled R$1,902.5 million, a slight drop of 1.7% versus 1Q24, with the Tiles Division having the biggest impact on the result in battling a more challenging competitive environment and a sector still facing demand pressures.

The Metals & Sanitary Ware Division showed some recovery versus the same period of the previous year, boosted by volume gains and a richer product mix. The Wood Division maintained its importance to the portfolio, accounting for approximately two-thirds of Consolidated Revenue over the period, sustained by demand from the furniture industry and the profitability of wood panels.

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Revenue fell by 7.8% versus 4Q24, suffering from the traditional seasonality of the period, especially with respect to the Finishes Division. The external market grew 9.9% versus 1Q24, reflecting the strong performance of exports in the panels segment.

Effect of Change to the Fair Value of Biological Assets and Depletion

Faced with the variations in the price of timber over recent years, Dexco periodically adjusts the value of its biological assets to capture this market dynamic. The calculation of the value of biological assets considers the price of the transactions made by the Company and in the market related to the levels of demand for timber - considering the increased demand and high volumes in existing projects - as well as the productivity of the forests.

In 1Q25, the Change in the Fair Value of Biological Assets was positive, with an increase of 3.9% over 1Q24, which reflects the dynamics of the sector. The depletion of biological assets, which represents the consumption of the asset from its use, showed a decrease of 24.7% versus 1Q24, mainly due to the effects of forestry trading carried out last year that was not repeated this year.

The variation in the value of biological assets and exhaustion is recorded for accounting purposes, having no cash effect on Dexco's results.

Cost of Goods Sold

The Pro Forma Cash Cost - which corresponds to the Cost of Goods Sold net of depreciation, amortization, depletion, and changes in biological assets, totaled R$1,202.2 million for 1Q25, an increase of 5.5% over 1Q24. This result was driven mainly by the improved product mix in the Metals & Sanitary Ware Division, which includes higher value-added inputs such as copper, as well as by the depreciation of the Brazilian real, which raised the cost of dollar for raw materials like methanol in the Wood Division. On a sequential basis, the Pro Forma Cash Cost decreased by 4.7%, reflecting lower sales volumes in the

Metals and Sanitary Ware Division due to seasonal effects, in addition to price adjustments in the Tiles Division that resulted in a more competitive mix.

As a proportion of Net Revenue, Pro Forma COGS accounted for 63.2% in 1Q25, an increase of 4.3 p.p. compared to 1Q24. This movement was also influenced by lower fixed cost dilution, due to the reduction in production volumes during the period. Additionally, driven by lower sales volumes, the Depletion Charge on Biological Assets declined by 24.7%. However, Depreciation, Amortization, and Depletion costs increased, mainly due to higher depletion expenses recorded during the quarter. .

As a result of these factors, the Company reported Pro Forma Gross Profit of R$470.4 million for the quarter, a decrease of 15.3% compared to 1Q24. The Pro Forma Gross Margin was 24.7%, down 4.0 p.p. year over year. Compared to 4Q24, Pro Forma Gross Profit declined by 13.9%, with a 1.8 p.p. contraction in margin.

1. 1Q25: Inventory impairment of Sanitary Ware in Queimados (+) R$4,487k, Operational Restructuring (+) R$3,780k; 4Q24: Inventory impairment arising from the exit from Electric Showers and Faucets (+) R$11,129k, Operational Restructuring (+) R$26,323k; 1Q24: Operational Restructuring: (+) R$5,257k;

2. Pro-forma Gross Income / Pro-forma consolidated Net Revenue.

Sales Expenses

Sales Expenses totaled R$294.9 million in 1Q25, up 4.7% on 1Q24. This increase was mainly driven by the sales and marketing initiatives carried out over the period, such as the Company's participation in the Revestir Fair - a strategically significant event in which it participates every year - and the opening of Casa Dexco, a landmark entry into the retail segment that builds the connection with the end consumer, a particularly important factor for the Finishes Division.

1Q24 was also atypical from a comparison perspective, given the ongoing organizational restructuring at that time, which accentuated the difference between the quarters.

These effects, however, were partially offset by a reduction in sales and marketing expenses in the Wood Division, which kept volumes shipped and Net Revenue steady for the period. As a result, the ratio of Sales Expenses to Net Revenue was 15.5% for 1Q25, a increase of 1.0 p.p. versus the same period the prior year, reflecting the lower dilution of fixed expenses as revenues fell.

1. 1Q25: Exit from the electric showers and faucets business (+) R$5,130k.

General and Administrative Expenses

General and Administrative Expenses totaled R$76.5 million for 1Q25, an increase of 5.3% over 1Q24. This movement mainly relates to an increase in personnel expenses, following the reorganization of the Company's operating and administrative structure. In relative terms, the indicator remained stable, representing 4.0% of Net Revenue for the period, a level similar to that reported for 4Q24.

1. 1Q25: Exit from the electric showers and faucets business (+) R$125.

EBITDA

Dexco's Consolidated Adjusted & Recurring EBITDA was R$345.6 million for 1Q24, with a margin of 18.2%, a drop of 21.8% versus the same period of the prior year. The drop arose mainly from 1Q24 being an unusually strong point of comparison, given the significant forestry trading carried out by the Wood Division in that period. In addition, although the Metals & Sanitary Ware Division improved year on year, the drop off in results for the Tiles Division, combined with an increase in SG&A expenses, contributed to the overall decline.

Using the equity equivalence accounting method for Dexco's 49.0%, Dexco's Pro-forma Adjusted & Recurring EBITDA was R$611.2 million for 1Q25, of which R$265.5 million arose from the LD Celulose. The operations saw significant growth, increasing 134.6% over 1Q24, recording the second highest Adjusted & Recurring EBITDA in its history at R$541.8 million (considering 100% of the operation).

The table below shows the reconciliation of EBITDA, in accordance with CVM Instruction 156/22. From this result, and in order to better convey the Company's potential operating cash generation, two adjustments have been made: the exclusion from EBITDA of events of an accounting and non-cash nature, and the disregard of events of an extraordinary nature. Thus, in line with the best practices, we present below the calculation of the indicator that best reflects the Company's cash generation potential.

1. Extraordinary events detailed in the attachment to this report;

2. Pro-forma Adjusted and Recurring EBITDA also includes Dexco's portion of the Recurring EBITDA arising from LD Celulose.

Financial Results

The Financial Result was negative R$194.4 million for 1Q25, R$37.4 million worse than for 1Q24. This performance reflects a drop of R$23.5 million in revenues, arising from the lower operating cash generation in the period. In addition, financial expenses increased by R$13.9 million, on the back of higher interest rates, which continue to put pressure on the average cost of debt, and on the impact of exchange rate movements, arising from the financial instruments used to hedge exposure, in keeping with the Company's risk management policy.

1. Extraordinary events relating to revenue: 4Q24: Interest on extemporaneous credit: (-) R$8,701k; 1Q24: Interest on INSS on base PIS COFINS without IR CS (-) R$3.997k, Interest on INSS on base PIS COFINS (+) R$3,603k.

Net Income

Recurring Net Income totaled R$83.8 million in 1Q25, with a recurring ROE of 4.9%, a result higher than that recorded in the same period of the previous year. This result mostly reflects the costs associated with the start-up of the new Tiles factory in Botucatu (SP), which began to ramp up in January, operating at reduced capacity. In the Metals & Sanitary Ware Division, the one-off impacts of operational restructuring, following the discontinuation of the Electric Showers and Faucets operation, also had an impact. The accounting effects relating to the sales of the operation were recognized in 4Q24, but there were SG&A expenses in the Division recorded in 1Q25.

On the other hand, Pro-forma Recurring Net Income benefited from the positive equity equivalence stemming from LD Celulose for the quarter - of R$125.3 million - an accounting effect, with no cash impact. Dexco's consolidated Pro-forma Recurring Net Income thus totaled R$83.8 million for 1Q25.

1. Extraordinary events detailed in the attachments to this material.

2. Pro-forma Recurring Net Income also includes Dexco's portion of the Recurring EBITDA arising from LD Celulose.

Cash Flow

Dexco reported consuming R$142.8 million in Sustaining Free Cash Flow in 1Q25, driven mainly by the 21.8% drop in Adjusted & Recurring EBITDA year on year. Including disbursements made on projects as part of the investment cycle, total cash consumption was R$303.3 million.

Despite the positive dynamics arising from working capital in the quarter, Sustaining Cash Flow suffered from disbursements on financial charges and extraordinary expenses, mostly associated with the ramp up of the new Tiles factory in Botucatu (SP). Improvement in client payment lead times reduced the need for operational financing, but this was partially offset by an increase in inventory levels - reflecting seasonality typical at the start of the year. Even so, the Net Working Capital to Net Revenue ratio fell to 15.6%, an improvement of 1.3 p.p. versus 1Q24, reflecting the Company's efforts to optimize the financial cycle.

With respect to projects during the period, in 1Q25 the Company invested R$54.0 million as part of the 2021-2025 Investment Cycle - a lower figure than in recent quarters, as we reach the end of the cycle, with an additional R$106.5 million invested in other projects.

1. Projects: 1Q25: Forestry Expansion (-) R$7.6 million, Productivity, Mix improvement and Deca automation projects (-) R$18.2 million, New Tile Factory (-) R$24.8 million, DX Ventures (-) R$3.3 million, Other Projects (-) R$106.5 million; 1Q24: Forestry Expansion (-) R$6.7 million, Productivity, Mix improvement and Deca automation projects (-) R$10.8 million, New Tile Factory (-) R$76.3 million, Other Projects: (-) R$32.6 million, DX Ventures (-) R$9.1 million, LD Celulose (-) R$84.9 million.

2. Cash Conversion Ratio: sustaining Free Cash Flow / Adjusted & Recurring EBITDA.

Corporate Debt

The Company closed out 1Q25 with consolidated gross debt of R$6,782.7 million, a reduction of 11.5% versus 1Q24, the equivalent of R$892.5 million. Net debt came in at R$5,364.4 million, an increase of 9.0% over the same period.

Compared to 4Q24, Net Debt increased by 7.9%, primarily due to negative cash flow in the period, driven by investments under the 2021-2025 CAPEX Investment Cycle and higher working capital requirements. Leverage, measured by the Net Debt to Adjusted & Recurring EBITDA ratio, ended the period at 3.45x - an increase of 0.13x compared to 1Q24 and 0.44x compared to 4Q24, reflecting the lower level of operating cash generation in 1Q25..

The average cost of financing was 106.8% of the CDI during the quarter, a drop of 0.2 p.p. year on year, but up 3.5 p.p. versus 4Q24, due to the increase in base interest rates over the period. Average maturity is 4.1 years, with 79% of the debt concentrated in the long term.

Strategic Management and Investment

The Company's Sustaining CAPEX totaled approximately R$161.4 million in 1Q25, in line with the same period of the prior year. The bulk of investment continues to be allocated to rebuilding the forestry base, reflecting the high levels of factory utilization in the panels operations in recent quarters.

With regards to projects, the following disbursements were made as part of the 2021-2025 Investment Cycle:

1. R$24.8 million for the new ceramic tiles plant in Botucatu (SP), which began to ramp up at the beginning of the year;

2. R$18.2 million for the Metals and Sanitary Ware operations, for automation projects and improvements to the product mix;

3. R$7.6 million for expanding the forestry base in the Northeast region;

4. R$3.3 million for DX Ventures;

There was also around R$106.5 million invested in other projects related to innovation and operational improvement in the period.

As the end of the Investment Cycle approaches at the end of this year, the Company is reinforcing its commitment to making projects profitable and boosting the value creation potential of its operations.

1. Including Investment Cycle 2021-2025 projects and other strategic projects.

2. In 1Q24 a R$84.9 million contribution was made to LD Celulose, which impacted the Company's Cash Flow.

Capital Marfiets

The Company closed out the end of the first quarter of 2025 with a market value of R$4,349.0 million, with a closing share price of R$5.38 on 31/03/2025.

Dexco's shares (B3: DXCO3) closed out the period 9.7% lower than at the end of 4Q24, while the Ibovespa index was up 8.3%. This result reflects the paper's lower liquidity in a domestic economy undergoing volatility and uncertainty.

343,452 trades in DXCO3 shares were carried out on the B3 spot market in 1Q25, which represents turnover of approximately R$960,648.9 million, that is, a daily average trade value of R$15.0 million.

WOOD

OPERATIONS

Wood Panels

1. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance in accordance with CVM instruction 156/22;

   
   
   

2. Extraordinary events: detailed in the attachments to this material.

WOOD

Demand in the wood panels market remained strong throughout the first quarter of 2025, according to data from Ibá - Indústria Brasileira de Árvores. The sector reported growth of 2.2% over 1Q24, driven by higher demand for MDP and MDF in the domestic market. This positive scenario prevailed despite the more challenging international environment, with economic instability affecting global trade, and exports in particular.

At Dexco, the Wood Division's results highlighted the solid consistency of the business. Volumes sold for the period

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totaled 719.5k m³, a drop of 5.2% year on year. This decline was anticipated, being directly related to scheduled maintenance shutdowns, a key component of the operating strategy that preserves the efficiency of the factory throughout the year. Versus 4Q24, the volume drop off was only 1.7%, despite the seasonality typical at the beginning of the year, which includes long holidays and a slower return to economic activity. The result highlights the resilience of demand, especially from the furniture industry.

Net Revenue came in at R$1,286.9 million for 1Q25, down 3.4% versus the same period of the prior year, albeit this comparison is a little misleading as the result for 1Q24 was significantly boosted by forestry

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trading in the period. The quarterly results thus highlight the capacity of the panels business to generate value even in a less favorable economic scenario. The performance of the export market was another plus: volumes shipped abroad grew 10.1% year on year and 13.1% versus 4Q24, highlighting the importance of this channel to the Division's trade strategy.

The Unit Cash Cost rose 15.3% versus 1Q24, pressured by inflation that has accumulated in recent quarters, the appreciation of the dollar and the lower dilution of fixed costs

due to scheduled maintenance shutdowns carried out over the period. Even so, compared to 4Q24, the increase was more contained (+1.5%), reflecting an increase in the prices of key inputs, many of which -such as resins and fuels - are linked to foreign currencies.

With respect to operating expenses, Sales Expenses fell by 7.9% versus 1Q24, and by 9.8% versus 4Q24, a result of lower volumes and a fall in logistics costs, especially freight, whose prices fell in comparison to both periods. On the other hand, General and Administrative Expenses rose by 14.5% year on year, driven by expenses related to strategic tax advisory services. Compared to 4Q24, they declined by 14.7%, reflecting the normalization of costs following the completion of technology projects that had generated additional expenses in the previous quarter.

The Division's Adjusted & Recurring EBITDA was R$350.0 million for 1Q25, with a margin of 27.2%. This result was in line with 4Q24, albeit with an increase of 0.8 p.p. in the margin, which reflects profitability gains, the efficient management of operating costs and the good overall performance of the business even in the face of the challenges mentioned. Versus 1Q24, Adjusted & Recurring EBITDA decreased by 20.3%, which directly reflects the lack of forestry trading in the quarter, which gave the figures for 1Q24 a one-off boost.

1 - Columbia and Brazil operations

WOOD PULP

DISSOLVING

Dissolving Wood Pulp

LD Celulose began the year solidly, reflecting the efficient operational management and high productivity levels at the plant. Adjusted & Recurring EBITDA was R$541.8 million for 1Q25, with a margin of 64.2%, in line with the figure for the end of 2024, already reflecting the gains from the factory debottlenecking process, foreseen since the start up of the operation. It should be noted that there were maintenance shutdowns during the quarter, scheduled to continue in the quarters ahead, which distort the comparison with previous quarters.

Net Income totaled R$251.8 million for the period, with no extraordinary accounting events. The annual comparison, however, was impacted by higher costs arising from scheduled maintenance and adjustments to the Fair Value Variation of Biological Assets. The dollar remains another significant factor, being the operation's functional currency, with the ongoing appreciation versus the real providing a boost that has continued since 2024.

LD Celulose's performance in the quarter led to an Adjusted & Recurring EBITDA of R$265.5 million, in terms of Dexco's 49% stake. This result is reflected using equity equivalence, contributing R$125.3 million to the Company's Net Income, included in the adjustments to the consolidated recurring results.

13

Quarterly Results 1Q25

& S

AN WARE

METALS

FINISHES

Metals & San Ware

1. 1Q25: Cost of Goods Sold: Inventory Impairment - Queimados (+) R$4,487k; Costs related to the discontinuation of the Electric Showers and Faucets operation (+) R$3,780k, Selling Expenses: Deca restructuring (+) R$5,130k; General and Administrative Expenses: Deca restructuring (+) R$125. Cost of Goods Sold: 4Q24: Inventory impairment arising from the exit from Electric Showers and Faucets: (+) R$11.129k;

2. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance in accordance with CVM instruction 156/22;

   
   
   

3. Extraordinary events: detailed in the Attachment to this material.

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AN WARE

METALS

According to ABRAMAT (Brazilian Association of the Construction Materials Industry), the Civil Construction sector began 2025 with signs of promise, continuing the recovery seen since the end of last year. According to data provided by the trade association, deflated gross revenue for basic materials rose 4.5% versus 1Q24, while finished materials rose by 7.6%. Total market growth was 5.7%. It should be noted that the basket of products considered by ABRAMAT encompasses a wide variety of items, including, but not limited to, those sold by Dexco.

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This sector recovery has yet to be significantly reflected in the results for the Company's Metals & Sanitary Ware Division, which reported a drop of 8.1% in volumes sold in 1Q25 versus 1Q24, with a total of 3,933k pieces sold. However, it should be noted that in the second half of 2024, Dexco announced its exit from the Electric Showers and Faucets segment - a line that represented a significant share of the division's volumes. Excluding this portfolio from the comparison, the Division's remaining business shows volume growth of 6.0% versus 1Q24, reflecting the progress made in these segments of the business.

The same trend is seen with the Division's Net Revenue, which grew 5.6% in 1Q25 over 1Q24, totaling R$415.5 million. This upturn reflects gains in market share, especially with respect to higher value-added items - especially in the Metals line, whose premium portfolio incorporates technologies, positioning it as a benchmark for the sector.

Operating costs were impacted by a number of factors: reorganization of the manufacturing facility, following the exit from the Electric Showers and Faucets segment, which had contributed to a greater dilution of fixed costs; prioritization of a more premium product mix for the portfolio; and an increase in input prices, especially for non-ferrous metals such as copper and brass. The Pro-Forma Unit Cash Cost thus increased by 10.7% over 1Q24. This increase was already foreseen, however, given the factors cited above.

Pro-Forma Sales Expenses rose 17.5% versus 1Q24, driven by the sales and marketing actions carried out over the period. The focus was the March opening of Casa Dexco, a concept store that now acts as a strategic sales channel for the Finishes Division. In addition, in 1Q24 investment in publicity and advertising fell, on the back of commercial restructuring carried out by the Division at the beginning of the year, which contributed to negative pressures when making quarterly comparisons. Meanwhile, Pro-Forma General and Administrative Expenses fell 4.0% in the period, reflecting the Division's focus on diligent cost management.

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Finally, the Division's Adjusted & Recurring EBITDA totaled R$8.2 million for 1Q25, reversing the negative R$1.7 million

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reported for the same period the previous year. This positive performance reflects the ongoing restructuring, adjustments to the product portfolio and trade policies, all of which are aimed at rebuilding market share in the segments in which the Company operates.

TILES

Tiles

1. Cost of Goods Sold: 1Q25: Ramp-up of the new factory at Botucatu (+) 15,982k; 4Q24: Tiles Restructuring (+) R$26,323k; 1Q24: Tiles Restructuring (+) R$5,257k;

2. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): measure of operating performance in accordance with CVM instruction 156/22;

   
   
   

3. Extraordinary events: detailed in the Attachment to this material.

TILES

According to data from ANFACER (National Association of Ceramic Tile Manufacturers), the total tiles market closed out in line with 1Q24, impacted by an increased share of the wet process segment and drop off in the levels of factory utilization, which fell to 67.0%, reflecting the ongoing high levels of inventory in the chain. The wet process tile segment, in which Dexco operates, showed resilience in 1Q25, growing 4.8% over 1Q24. This growth was mainly driven by a concentrated sell-in trend in January, associated with significant price reductions.

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Dexco ended the quarter with 4,056.6k m² in volumes shipped, a rise of 1.8% over 1Q24, albeit 4.3% less than for 4Q24. This result came on the back of initiatives to recover market share through optimizing the product mix and adopting pricing policies more aligned to the market environment, and reflects the intensification of competition among the industry players and profitability challenges faced in the short term.

Despite the uptick in volume, stiff competition and margin pressures restricted Net Revenue, which totaled R$200.2 million for the quarter, a fall of 4.7% versus 1Q24 and of 8.8% versus 4Q24. Unit Net Revenue, in turn, fell 6.4% versus 1Q24, influenced by a more competitive product mix in the period.

Pro-Forma Unit Cash Cost, meanwhile, increased 6.0% versus 1Q24 and 3.2% versus 4Q24, mainly due to the lower dilution of fixed costs resulting from the maintenance shutdowns that began in 4Q24 and extended through mid-January. Additional pressure also came from ramp-up costs at the new Botucatu (SP) plant, which began operations at reduced capacity in January 2025 and incurred higher-than-usual costs during its production stabilization phase.

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Sales Expenses rose 21.6% vs. 4Q23, on the back of investment in trade activities, such as participating in Expo Revestir, a strategically important event for the Finishes sector. There were also costs incurred from structuring the Company's new retail front, with the opening of Casa Dexco in March 2025. General and Administrative Expenses rose, in turn, increasing by 10.9% year on year and by 10.0% versus 4Q24, impacted by the corporate structure reorganization resulting from entry into the retail market.

It was against this backdrop that the Tiles Division's Adjusted & Recurring EBITDA came in at negative R$12.5 million for 1Q25, with a margin of -6.2%, versus the positive R$4.1 million reported for 1Q24. This result reflects the sector's ongoing market pressures, with the increase in volumes and trade activities and adjustments insufficient to offset the impact of additional fixed costs and lower unit revenue over the period.

1 - Ceusa and Portinari brands.

Attachments Financial Statements - Assets

Financial Statements - Liabilities

Income Statement

Cash Flow Statement

Extraordinary events (Adjusted & Recurring EBITDA)







Extraordinary events (Recurring Net Income)