Quarterly Results Report 2Q25

QUARTERLY

tado Trimestral 3T24 | 0

Resul

2Q25

Pro-forma Adjusted & Recurring EBITDA of R$702.2 million in 2Q25, including the 49.0% share of the results from LD Celulose.

WOOD

Volume of 752.6k m3 in 2Q25 stable versus 2Q24 (+0.4%), and of 1,472.1k m3² for the half, a slight downturn versus the prior year (-2.4%);

Demand remained strong, supported by high levels of capacity utilization, the highlight being MDP panels;

Adjusted and Recurring EBITDA of R$427.9 million, with a margin of 29.9%, boosted by improved panel margins and execution of forestry trading.

DISSOLVING PULP

WOOD

Pro-forma Adjusted & Recurring EBITDA YTD of R$525.1 million in 1H25, with a margin of 60.5% in 2Q25 (Dexco's share);

Operations showed efficiency and productivity gains which drove the results for the quarter;

Base comparison impacted by maintenance shutdowns and accounting effects.

METALS & SAN WARE

Increase of 14.1% in volumes versus 1Q25, closing out the period with 4,486.0k pieces;

Increase in Recurring Net Income in both 2Q25 and 1H25, discounting the Electric Showers and Faucets Operation;

Adjusted & Recurring EBITDA of R$8.6 million in 2Q25 and of R$16.8 million in 1H25, reflecting higher costs and operational efficiency impacts in the Sanitary Ware division.

TILES

Volume of 4,232.2k m² in 2Q25 and of 8,288.7k m² in 1H25, both figures flat versus the same periods in 2024;

Adjusted and Recurring EBITDA of R$6.1 million for the period, a recovery versus 1Q25 and 2Q24;

High inventory levels and idle capacity in the sector remain a challenge, especially when coupled with demand that is below historical levels and a highly competitive marketplace.

Sustaining Cash Flow of negative R$90.6 million for 2Q25, down on 2Q24, reflecting the greater need for working capital during the quarter, which outweighed the increase in EBITDA.

((1) 2Q25 Cost of Goods Sold: Ceramic Tiles: Inventory impairment arising from factory restructuring: (+) R$14,946k; Costs from Botucatu ramp-up (+) R$16,217k; Admin and operational costs from factory restructuring: (+) 2,858k; 1Q25: Inventory impairment - kiln-fired sanitary ware (+) R$4,487k; Costs arising from exiting Electric Showers and Faucets production (+) R$3,780k; Costs from Botucatu ramp-up (+) R$15,982k;; 1Q24: Operational restructuring (+) R$5,257k;

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

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

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

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

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

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

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

   
   
   

8. 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.

The second quarter of 2025 saw a more volatile economic environment, both in Brazil and beyond. From a global perspective, the main economies reported a downturn which, coupled with the ongoing introduction of protectionist trade policies in the United States, heightened the perception of global risk. In Brazil inflation continues to slow, albeit remaining above the target ceiling. By way of response, the Central Bank has raised the Selic rate to 15.0% per year, intensifying credit restrictions, a backdrop that directly affects the construction sector. Despite slightly more positive inflation and economy growth projections, the scenario remains challenging, with high interest rates, fiscal uncertainty and political instability, necessitating constant vigilance with respect to the dynamics of the markets in which the Company operates.

Even against this backdrop, the Wood Division continued to see steady demand. According to data from the Brazilian Tree Industry (Ibá), the wood panels sector ended 2Q25 with growth of 2.0% versus 2Q24, and of 2.1% year-to-date. At Dexco, the Division reported Adjusted and Recurring EBITDA of R$427.9 million for the quarter, with a margin of 29.9%, a 34.3% increase over 2Q24. This performance was driven by the profitability of the wood panels business and by forestry trading carried out over the period. For the first half, Adjusted and Recurring EBITDA totaled R$777.8k, with a margin of 28.6%, 2.6% up on 1H24.

With an Adjusted and Recurring EBITDA of R$529.1 million and a margin of 60.5% for 2Q25 (considering 100% of the operation), LD Celulose maintained its levels of quality and production efficiency, ensuring operational excellence and cost resilience, even faced with a more cautious macroeconomic environment with respect to commodity pricing. Year-to-date, the joint venture recorded an Adjusted and Recurring EBITDA of R$1,070.9 million, with a margin of 62.3%, of which R$525.1 million relates to Dexco's share.

Data from ASFAMAS (the Brazilian Association of Sanitation Materials Manufacturers), aligned with the Company's internal analyses, are starting to indicate an increase in demand for building materials. This scenario was reflected in the performance of the Metals & Sanitary Ware Division, which closed out the quarter with an Adjusted and Recurring EBITDA of R$8.6 million, with a margin of 1.8%, 5.9% up on 1Q25. The Division also reported growth in both volumes and Net Revenue in year-over-year comparisons for both the quarter and the semester., discounting the Electric Showers and Faucets business, which was discontinued in 2024. Year-to-date, Adjusted and Recurring EBITDA totaled R$16.8 million, with a margin of 1.9%, reflecting the impact of the increased cost of manufacturing inputs and initiatives to optimize Dexco's manufacturing facilities.

Unlike the other sectors, consistent signs of recovery are yet to be seen in the Ceramic Tiles industry, where levels of idle capacity are nearly 30%, while production volumes are falling, according to data from ANFACER (National Association of Ceramic Tile Manufacturers). At Dexco's Tiles Division, this more challenging scenario continues to impact results, with the Division closing out 2Q25 with an Adjusted and Recurring EBITDA of R$6.1 million, and a margin of 2.9%. Volumes were stable but Net Revenue was under pressure from a drop-off in prices. Year-to-date, the Division's Adjusted and Recurring EBITDA is negative R$6.3 million.

Despite each business facing its own set of challenges, Dexco remains alert to opportunities for efficiency gains, with a focus on efforts to maximize the profitability of its portfolio while optimizing the manufacturing facilities. The performance for the first half of the year, coupled with a more positive outlook for the macroeconomy, suggests brighter prospects for the second half of the year, buttressed by operational discipline and a focus on generating value.

Consolidated Net Revenue totaled R$2.121.7 million for the second quarter, an increase of 6.3% over 2Q24, reflecting the Wood Division's ongoing steady performance, with a positive trend boosted by the greater profitability of the panels portfolio and by forestry trading during the period. In addition, strong demand from the furniture sector has been a key driver of the division's performance, accounting for 68.0% of Consolidated Net Revenue in the quarter, which partially offset the drop-off reported for the Finishes Division - which saw a decline of 11.4% for Metals & Sanitary Ware and of 5.1% for Ceramic Tiles.

Net Revenue grew 11.5% quarter-on-quarter, reflecting the seasonal recovery typically seen in the first half of the year, especially in the Finishes Division.

Year to date, Consolidated Net Revenue totaled R$4.024.2 million, growth of 2.4% versus 1H24. The result primarily reflects the performance of the Wood Division, which grew 6.0% over the period, plus the positive impact of price increases introduced in

Net Revenue Breakdown

2Q25 (%)

10%

22%

68%

San Ware

Net Revenue Breakdown

10%

20%

70%

1H25 (%)

the second half of 2024, which only started to make a full impact at the beginning of this year. These factors helped to offset the impact of a more competitive environment in the Finishes Division, which saw pressure on both prices and sales volumes. Finally, Net Revenue from the external market grew 5.5% versus the same period of the previous year.

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 2Q25, the Change to the Fair Value of Biological Assets saw an increase totaling R$72.2 million, albeit this figure was significantly lower than for 2Q24, with an overall decrease year-on-year of 75.8%. This fall mainly reflects the high base comparison, as the 2Q24 figure was influenced by a significant adjustment to wood pricing parameters.

.

Pro-Forma Cash Cost - which corresponds to the Cost of Goods Sold, net of depreciation, amortization, depletion, and changes to biological assets - totaled R$1,295.6 million in 2Q25, an increase of 3.7% over 2Q24. The rise stemmed from greater pricing pressures for raw materials, particularly urea and methanol,

- two of the main inputs for the Wood Division - and for copper, a key component for the Metals & Sanitary Ware Division. This situation arose from the adverse impact of geopolitical tensions on supply chains. In addition, the richer product mix in the Metals & Sanitary Ware Division also saw an increase in the Division's costs year-on-year. As a proportion of Net Revenue, Pro-Forma COGS came in at 61.1% for 2Q25, a fall of 1.6 p.p. versus 2Q24, which reflects the increase in Consolidated Net Revenue over the period. On a half-year comparison, the increase was 4.5%, with a total of R$2,497.8 million for the half, which reflects both an increase in sales volumes across all divisions, and a lower dilution of fixed costs arising from scheduled maintenance shutdowns in the Wood Division, which were concentrated in the first half of this year.

As a result of these factors, Pro-Forma Gross Income totaled R$521.0 million in 2Q25, with a Pro-Forma Gross Margin of 24.6%, a drop of 12.4 percentage points versus the same period the prior year. This fall primarily reflects the higher base comparison from 2Q24, which saw an impact from the change to the fair value of biological assets. For the half-year, the Company reported a Pro-Forma Gross Income of R$991.4 million, a drop of 23.4% year-on-year. The Pro-Forma Gross Margin, in turn, was 24.6%, a decrease of 8.3 p.p.

(1) One-off events: 2Q25: Ceramic Tiles: Inventory impairment arising from factory restructuring: (+) R$14,946k; Costs from Botucatu ramp-up (+) R$16,217k; Admin and operational costs from factory restructuring: (+) 2,858k; 1Q25: Inventory impairment of kiln-fired sanitary ware (+) R$4,487k; Operational restructuring (+) R$3,780k; Costs from Botucatu ramp-up (+) R$15,982k; 4Q24: Inventory impairment arising from exit from the electric showers and faucets operation (+) R$11,129k, Operational restructuring (+) R$26,323k; 1Q24: Operational restructuring (+) R$5,257k;

(2) Pro-forma gross income / Pro-forma consolidated Net Revenue.

Pro-forma sales expenses totaled R$306.4 million for 2Q25, a 2.6% uptick over 2Q24. This increase reflects brand-building initiatives, such as participation in Casacor, which is traditionally held during this period, as well as the roll out of activities for Casa Dexco - which launched in March this year and aims to build the Company's presence with end consumers. The goal of this strategy is to differentiate the brand and consolidate the Finishes Division in the B2C segment.

The increase in sales expenses versus 2Q24 was partially offset by a reduction in sales expenses for the Wood Division, which reflects stable volumes shipped and efficiency gains in the sales structure. As a result, the ratio of sales expenses to net revenue fell 0.5 percentage points year-on-year, closing out 2Q25 at 14.4%.

Year-to-date, Pro-forma Sales Expenses totaled R$596.2 million for the half, an uptick of 2.7% versus 1H24, which reflects the strengthening of commercial activities, especially in the Finishes Division.

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

Pro-Forma General & Admin Expenses totaled R$78.2 million for 2Q25, a 7.5% increase versus 2Q24. This movement reflects adjustments to the organizational and administrative structure carried out in recent quarters, against a leaner base comparison for the same period the previous year. In relative terms, these expenses represented 3.7% of Net Revenue for the period.

Pro-Forma General & Admin Expenses came in at R$154.6 million for the half, a 6.3% increase versus the same period the previous year, impacted by the initiatives cited above.

(1) 2Q25: Consultancy (+) 4,970k; 1Q25: Exit from the electric showers and faucets business (+) R$125.

Dexco's Consolidated Adjusted & Recurring EBITDA totaled R$442.6 million for 2Q25, an increase of 17.6% versus 2Q24. This result was driven primarily by the Wood Division, and forestry trading in particular, as well as the higher volumes in MDP, in a sector that continues to boom. For the Finishes Division, improved operating efficiency in Tiles, from the new manufactory plant of Botucatu (SP) made a positive impact, reversing the negative figure for 1Q25, meanwhile Metals & Sanitary Ware remained stable. The Adjusted & Recurring EBITDA margin came in at 20.9% for the quarter, up 2.0 p.p. year-on-year, reflecting gains in efficiency and profitability and a richer mix, plus the positive impact of forestry trading.

For the first half of the year, consolidated Adjusted & Recurring EBITDA totaled R$788.3 million, a 3.7% decline versus the same period in 2024, with a margin of 19.6% (-1.2 p.p.), which reflects the ongoing challenges faced by the Finishes Division and their impact on the Company's operating performance.

Dexco's Pro-forma Adjusted & Recurring EBITDA totaled R$702.2 million for the quarter, of which R$259.5 million came from Dexco's 49.0% share in LD Celulose, which reported another strong performance, reaching its third highest Adjusted & Recurring EBITDA recorded, totaling R$529.1 million, 40.6% up on 2Q24, with a margin of 60.5% (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 best practices, we present below the calculation of the indicator that best reflects the Company's cash generation potential.

(1) One-off events detailed in the addendum to this report;

(2) Includes Dexco's share of LD Celulose.

The financial result for 2Q25 came in at negative R$198.6 million, a decrease of R$44.6 million versus 2Q24. This drop off is mainly attributable to the R$30.2 million fall in financial income, equating to 28.3% year-on-year, which arose from the lower average cash position during the period, limiting the return on financial investments. In addition, financial expenses increased by R$14.3 million on the same base comparison, reflecting the pressure arising from an elevated base interest rate. The average cost of debt thus reached 107.1% of CDI, with 99.6% of the exposure indexed to the rate by the end of the quarter.

On a Pro-Forma basis, the Net Financial Result was negative R$225.1 million, impacted by one-off events related to the gross up for interest on ICMS for the PIS/COFINS tax base, which totaled R$26.5 million.

(1) One-off events re Financial revenue: 2Q25: Interest on INSS on base PIS COFINS (+) 26,476k; 1Q24: Interest on INSS on base PIS COFINS without IR CS (-) R$3,997k, Interest on INSS on base PIS COFINS (+) R$3,603k;

Recurring Net Income totaled R$29.9 million for 2Q25, with a recurring ROE of 1.7%, a drop off of 71.5% (-4.7 p.p.) year-on-year. Although LD Celulose's equity equivalence income was positive R$93.6 million for the quarter, this figure was not enough to overcome a particularly strong base comparison from 2Q24, which arose from the Change to the Fair Value of Biological Assets, as previously described. In addition, the negative impact of the financial result added pressure to the quarterly performance.

Recurring Net Income totaled R$113.7 million for 1H25, a 12.0% increase versus 1H24, which reflects the higher contribution from equity equivalence income arising from LD Celulose, which had reported a loss for the same period of the previous year, due to accounting effects related to exchange rate variations and deferred taxes.

1. One-off events detailed in the addendum to this report;

2. Includes Dexco's share of LD Celulose.

Dexco reported Sustaining Free Cash Flow consumption of R$90.6 million for 2Q25, reversing the R$36.2 million generated in 2Q24. This figure was primarily the result of increased working capital requirements, which totaled R$63.9 million for the quarter, arising from the replenishment of inventory levels following factory reorganization and the strategy to improve service levels in the Finishes Division.

Total Free Cash Flow came in at negative R$196.7 million, a 5.0% downturn versus 2Q24. Despite the 22.7% reduction in Sustaining CAPEX and improvement in receivables and supplier dynamics - reflecting a shorter average customer collection period and extended supplier payment terms - the boost to working capital was partially offset by an increase in inventories. As a result, the ratio of Net Working Capital to Net Revenue rose by 1.8 p.p. year-on-year, at 16.2% for the quarter.

With respect to strategic projects, in 2Q25 the Company invested R$89.0 million as part of the 2021-2025 Investment Cycle. In addition, R$17.2 million was allocated to other maintenance and factory modernization projects.

Year-to-date, sustaining cash consumption totaled R$233.3 million for the half, while Total Free Cash Flow was negative R$500.0 million, primarily driven by higher working capital consumption and financial expenses during the period, this despite a drop off in project investments versus 1H24.

1. 2Q25: Forestry Expansion (-) R$9.1 million, Productivity Projects, Improvement to the mix and Deca automation (-) R$11.6 million, New Tiles Factory (-) R$3.2 million, DX Ventures (-) R$12.9 million, Other Projects (-) R$106.5 million 1Q25: Forestry Expansion (-) R$7.6 million, Productivity Projects, Improvement to the mix and Deca automation (-) R$18.2 million, New tiles 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 Projects, Improvement to the mix and Deca automation (-) R$10.8 million, New tiles 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.

The Company closed 2Q25 with consolidated gross debt of R$6,960.8 million, a 4.5% decrease versus 2Q24, which represents some R$328.9 million. Net debt, in turn, ended the quarter at R$5,499.3 million, an increase of R$275.1 million versus the same period of the prior year, reflecting the lower available cash balance. Net Debt was up 2.5% on 1Q25, largely explained by optimization of the amortization timeline carried out between the periods.

Leverage, as reported by the Net Debt/Adjusted & Recurring EBITDA ratio, ended the period at 3.39x - a decrease of 0.07x versus 2Q24, and of 0.06x versus 1Q25, which reflects the improved level of operational generation during the period.

The average cost of financing for the quarter was 107.1% of CDI, an increase of 3.5 p.p. year-on-year and of 0.3 p.p. versus 1Q25, arising from the increase in base interest rates during the period. Currently, the average term is 4.3 years, with 73% of the debt concentrated in the long term.

Gross Corporate Debt I 2Q25 (%)

Amortization Timeline

2,660

27%

73%

2,212

764

1,335

1,267 744

190

Cash Position 2025 2026 2027 2028 2029 2030 and after

The Company's Sustaining CAPEX totaled R$205.5 million for 2Q25, a fall of 22.7% versus the same period of the prior year, with R$139.9 million related to the rebuilding of forestry assets, and R$65.6 million directed at factory maintenance. Sustaining CAPEX totaled R$366.9 million for the first half of the year, a figure 13.8% below that reported for the same period in 2024.

With respect to Projects, the following was allocated as part of the for the 2021-2025 Investment Cycle:

1. R$3.2 million for the new ceramic tiles plant in Botucatu (SP), which began to ramp up at the beginning of 2025;

2. R$11.6 million for the Metals and Sanitary Ware operations, for automation projects and improvements to the product mix;

3. R$9.1 million for expanding the forestry base in the Northeast region;

4. R$65.1 million on DX Ventures

   There was also around R$17.2 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.

The Company closed out the end of the second quarter of 2025 with a market value of R$4.595.0 million, with a closing share price of R$5.67 on 30/06/2025.

Dexco's shares (B3: DXCO3) closed out the period 5.4% higher than at the end of 1Q25, while the Ibovespa index was up 6.6%. This result reflects the paper's greater liquidity, despite the volatility and uncertainty that has beset the domestic economy.

326,386 trades in DXCO3 shares were carried out on the B3 spot market in

Shareholders Structure I 2Q25

37.6%

40.8%

1.2%

20.4%

2Q25, which represents turnover of approximately R$1.0 billion, that is, a daily average trade value of R$15.5 million.

WOOD

OPERATIONS

1. 2Q25: Sales expenses: Consultancy R$ (+) 2,023k; 2Q24: Cost of Goods Sold: Donations (+) R$1,081k

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

   
   
   

3. One-off events: detailed in the addendum to this report.

WOOD

According to data from Ibá - the Brazilian Tree Industry, the panels market continued to see strong demand in 2Q25. The sector reported 2.0% growth over 2Q24, while for the first half of the year, it grew 2.1%. This performance was mainly driven by high levels of demand in the domestic market, particularly for MDP (MDF) in the furniture industry. This growth was partially offset by a decline in exports, which closed out the quarter and the half with falls of 2.8% and 6.8%, respectively, in the face of an increasingly pressured international scenario with political, fiscal, and logistical uncertainties.

Dexco's Wood Division closed out 2Q25 having shipped 752.6k m³, an uptick of 0.4% versus the same period in 2024, which reflects the continued strong performance of the domestic market, which accounted for 82.6% of sales in the period. The company was able to optimize its profitability strategy despite the shutdowns carried out during the quarter. Year-to-date, 1,472.1k m³ were shipped, 2.4% down on 1H24, explained by the concentration of shutdowns in the half-year.

The Division's Net Revenue totaled R$1.432.5 million in 2Q25,

Sales Segmentation I 2Q25(1)

15%

47%

37%

1%

Industry

Construction

Sales Segmentation I 1H25 (1)

14%

50%

35%

1%

Industry

Construction

growth of 16.1% versus 2Q24, driven by a price pass-through in domestic channels and significant forestry trading over the period. Revenue for the first half of the year totaled R$2,719.4 million, 6.0% up on 1H24. The profitability of the operation was also reflected in unit Net Revenue, which rose 15.7% for

Cost of Products Sold I 2Q25(1)

9% 5%

12%

26%

23%

25%

Cost of Products Sold I 1H25 (1)

8% 6%

13%

26%

22%

25%

the quarter.

The Division's Unit Cash Cost was R$1,072/m³, a 12.8% increase versus 2Q24, pressured primarily by price increases to inputs such as paper and resin, together with the reduced dilution of fixed costs during maintenance shutdowns. Nevertheless, factory utilization remained high, mitigating some of this pressure. On a half-year comparison, the average cost grew 14.1%, reflecting inflation in raw materials and a one-off increase in industrial expenses.

Sales expenses fell 1.8% versus 2Q24, down 4.8% year-to-date, despite the growth in volumes shipped. Pro-Forma General & Admin Expenses decreased 1.6% for the quarter and 7.5% versus 1Q25, reinforcing the Company's focus on discipline and efficiency in fixed cost management. For the first half of the year, G&A expenses increased 6.1%, mostly reflecting the impact of inflation.

Against this backdrop, the Division's Adjusted & Recurring

EBITDA totaled R$427.9 million for 2Q25, a 34.3% upturn over the same period in 2024. The EBITDA margin was 29.9%, an increase of 4.0 p.p., driven by both the panel operations and the significant contribution from forestry trading. EBITDA totaled R$777.8 million for 1H25, with a margin of 28.6%, a 2.6% uptick versus 1H24.

1 - Columbia and Brazil operations

WOOD PULP

DISSOLVING

LD Celulose's operations continued apace in the second quarter of 2025, the highlight being the growth in volumes and maintenance of high levels of productivity and efficiency. Production at the unit totaled

157.6k tons for the quarter, an increase of 11.5% versus 2Q24, driving Net Revenue to R$874.5 million, growth of 30.0% on the same comparison.

Adjusted & Recurring EBITDA came in at R$529.1 million, with a margin of 60.5%, reflecting continued gains in scale, cost control and a solid operating performance. Year-to-date, the Adjusted & Recurring EBITDA totaled R$1.070.9 million, with a margin of 62.3%, of which R$525.1 million represents Dexco's share in the joint venture.

The recovery in Net Income, which totaled R$191.2 million for the quarter, was aided by the base comparison, which was impacted by accounting effects in 2024, and by operating stability. The net result for Dexco from the operation was R$93.6 million for the quarter, recognized using equity equivalence.

13

Resultado Trimestral 2T25

& S

AN WARE

METALS

FINISHES

Metals & San Ware

1. 2Q25: Consultancy (+) 2,279k; 1Q25: Cost of Goods Sold: Inventory impairment - Kiln-fired sanitary ware (+) R$4,487k; Costs arising from exiting Electric Showers and Faucets production (+) R$3,780k; Sales expenses: Deca Restructuring (+) R$5,130k; General & Admin Expenses: Deca Restructuring (+) R$125k;

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

   
   
   

3. One-off events: detailed in the addendum to this report.

& S

AN WARE

METALS

The building sector, to which Dexco's Metals & Sanitary Ware business is directly linked, showed positive signs in 2Q25, according to data from both ASFAMAS (Brazilian Sanitation Materials Association) and the Company's own internal analyses. The metals market remains in a process of stabilization, following a cycle of price increases that increased the base comparison for 2024, which has led the market to shrink 5.4% year-on-year. Nevertheless, performance remains above the levels reported at the start of the year, reinforcing prospects of a gradual recovery during 2025. For the Sanitary Ware sector, the scenario remained positive, showing 10.9% growth in the monthly market average versus 2Q24, supported by more robust, steady demand during the first half.

The Metals & Sanitary Ware Division reported a stable performance for the quarter, despite a still challenging sector environment. Volumes shipped totaled 4,486,000 units in 2Q25, an improvement on 1Q25 but 25.5% lower than in 2Q24. Volumes shipped came in at 8,419,000 units for 1H25, an 18.3% drop-off versus 1H24, driven mainly by the electric showers and faucets

Sales Segmentation I 2Q25(1)

8%

17%

43%

26%

3% 3%

Sales Segmentation I 1H25(1)

10%

40%

17%

27%

4% 2%

operations, whose facility was sold in 2024. Discounting this impact, the Division's volumes remained stable for both the quarterly and half-yearly comparisons.

Recurring Net Revenue also increased versus 1Q25 (+14.1%), totaling R$474.4 million for the quarter, driven by growth in higher-value-added segments. There was an 11.4% decline versus 2Q24, reflecting lower volumes. However, excluding the effects of the electric faucet and shower operations, the Company's Net Revenue grew 1.9% versus 2Q24, and 6.9% versus 1H24, reflecting gains in Unit Net Revenue for both the annual and half-yearly comparisons.

Costs remained under pressure during the quarter, driven by

Cost of Products Sold I 2Q25

4% 2%

6%

18%

40%

30%

Cost of Products Sold I 1H25

rising input prices - particularly metals - and lower operational efficiency observed in the Sanitary Ware segment. As a result, the Pro Forma Unit Cash Cost increased by 22.6% year-over-year and by 17.3% compared to 1H24, while remaining stable versus 1Q25.

Pro-Forma Sales Expenses grew by 14.5% for 2Q25 versus 2Q24 and by 19.2% for 1H25 versus 1H24, reflecting investment in strategic events that showcase Dexco's portfolio brands, such as Expo Revestir, CasaCor, and Casa Dexco. Pro-Forma General & Admin Expenses rose 3.4% for the quarter, but saw a slight

7%

18%

40%

29%

4% 2%

drop of 0.4% for the first half of the year.

The Division's Adjusted & Recurring EBITDA totaled R$8.6 million for 2Q25, with a margin of 1.8%, in line with the previous quarter. Despite the pressure on results, the stability compared to 1Q25 suggests that the operational adjustments implemented throughout the period -- in anticipation of the factory reorganization -- are beginning to take effect. with

prospects for a gradual recovery in profitability during the second half of the year.

REVESTIMENTOS

1. Cost of Goods Sold: 2Q25: Inventory impairments arising from factory restructuring: (+) R$14,946k; Costs from Botucatu ramp-up (+) R$16,217k; Admin and operational costs from factory restructuring: (+) 2,858k; 1Q25: Ramp-up of new factory at Botucatu (+) R$15,982k; 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. One-off events: detailed in the addendum to this report.

REVESTIMENTOS

According to data from ANFACER (National Association of Ceramic Tile Manufacturers), the overall tiles market fell 1.0% in 2Q25 versus 2Q24, amid a still-challenging sector scenario with excess inventory and idle capacity. The wet process segment, Dexco's focus, however, reported growth of 2.4% for the quarter and of 3.6% for 1H25, indicating greater dynamism for the sector, albeit while facing increased competitive pressures and high inventories throughout the supply chain.

Against this backdrop, Dexco's Tiles Division reported volumes shipped of 4,232.2k m² for the quarter, a 1.0% drop versus 1Q24, but a 4.3% uptick over 1Q25, while flat on a year-to-date comparison, with a total volume shipped of 8,288.7k m² for 1H25 (+0.3% versus 1H24).

Net Revenue for 2Q25 was R$214.8 million, a 5.1% fall versus 2Q24, impacted by a 4.2% reduction in average price and a decline in volumes shipped. This result stems from weaker demand and a more price-sensitive consumer environment,

Sales Segmentation I 2Q25(1)

10%

14%

38%

17%

21%

Sales Segmentation (1) I 1H25

9%

12%

39%

18%

22%

which has stimulated a dontrading trend, thus putting pressure on margins in the sector. Revenues grew 7.3% versus 1Q25 however, reflecting higher capacity utilization and productivity gains. For 1H25, Net Revenue came in at R$415.0 million, 4.9% down on 1H24. Despite the decline, the Division saw improvements in operating efficiency, with an increase in capacity utilization driven by manufacturing reorganization (as per the Announcement to the Market on July 2), and by the ramp-up of the new Botucatu unit, which is still undergoing a period of stabilization.

Cost of Products Sold I 2Q25(1)

8%4%

16%

49%

23%

Cost of Products Sold I 1H25(1)

8%

5%

17%

47%

23%

On the cost side, the Pro-Forma Unit Cash Cost fell by 9.5% versus 2Q24 and by 4.9% versus 1Q25, reflecting the greater dilution of fixed costs over the period. The improvement in operations stemmed from the manufacturing reorganization carried out during the semester - including the temporary suspension of two production lines in the Southern units - and from the gradual ramp-up of the new Botucatu plant. As a result, capacity utilization improved during the quarter, highlighting the Company's efforts to rebalance its manufacturing operations.

Sales expenses grew 2.7% for the quarter and 8.7% for the first half of the year, following initiatives aimed at boosting both sales and brand positioning¹, such as Expo Revestir and the launch of retail operations through the opening of Casa Dexco. General & Administrative Expenses rose 15.4% year-on-year, impacted by the restructuring of support areas for the new manufacturing operation.

Against this backdrop, the Tiles Division's Adjusted & Recurring

EBITDA came in at R$6.1 million for 2Q25, with a positive margin of 2.9%, flat versus the previous year. For 1H25, the year-to-date figure was negative R$-6.3 million, reversing the positive figure of R$10.1 million reported for 1H24. Performance remains under pressure from a combination of lower volumes, a drop in average prices, and the reduced dilution of fixed costs, which continues to limit the return to profitability in the short term.

1 - Ceusa and Portinari brands.

One-off events (Recurring Net Income)