Irani Reports Consistent Growth, Strong Cash Generation and Strategic Progress in 2025

Porto Alegre, February 23, 2026 – Irani Papel e Embalagem S.A. (B3: RANI3) announced its consolidated results for the fourth quarter of 2025 (4Q25) and full year 2025, demonstrating consistent operational execution, margin expansion and strong free cash flow generation.

In 2025, net revenue totaled R$ 1.686 billion, an increase of 8.4% compared to 2024, driven primarily by price recovery across both the Sustainable Packaging (Corrugated Cardboard) and Sustainable Packaging Paper segments. Adjusted EBITDA reached R$ 539.0 million, up 11.4% year-over-year, with margin expansion to 32.0%. Net income from continuing operations totaled R$ 253.9 million. The Company ended the year with a Net Debt/Adjusted EBITDA ratio of 1.99x, improving from 2.26x in 2024, reflecting disciplined financial management and robust operating cash flow.

Free cash flow generation was a key highlight of the year. Adjusted Free Cash Flow reached R$ 387.1 million, an increase of 62.8% compared to 2024, resulting in a Free Cash Flow Yield of 21.5%. The Company closed 2025 with a strong cash position of R$ 839.8 million, up 39% year-over-year.

Operationally, Irani maintained its strategy of prioritizing profitability over volume. In the Sustainable Packaging (Corrugated Cardboard) segment, sales volume totaled 170.0 thousand tons in 2025, a 2.5% reduction compared to the previous year, consistent with the value-over-volume strategy. Average prices increased 10.9% year-over-year, supporting margin expansion.

In the Sustainable Packaging Paper segment, production reached 317.1 thousand tons, up 1.1% from 2024, while sales increased 2.6% to 127.5 thousand tons. Rigid paper prices rose 17.5% year-over-year, reflecting gradual market recovery and pricing discipline, while flexible paper prices increased 3.1%. During the fourth quarter, production was temporarily impacted by a scheduled Recovery Boiler shutdown for regulatory inspection (NR-13), as previously disclosed.

The Forestry RS segment generated R$ 11.7 million in revenue in 2025 and continued to strengthen the Company’s forest base through afforestation investments.

Throughout 2025, Irani invested R$ 278.6 million in modernization, expansion and sustainability initiatives. Of this total, R$ 178.1 million was allocated to equipment and facilities and R$ 88.7 million to afforestation and reforestation. In 4Q25 alone, investments totaled R$ 78.3 million, mainly directed toward operational efficiency projects and industrial infrastructure improvements.

The Company continued to advance its Gaia Platform projects. Gaia I (Chemical and Utility Recovery) continued capturing returns, while Gaia IV (Cristo Rei Repowering) remains under review pending environmental licensing updates. Gaia V (São Luiz Repowering) progressed into the site preparation and contracting phase, with turbine and generator packages already secured. The project is partially funded by the 6th Issuance of Green Debentures, completed in October 2025 in the amount of R$ 120 million, with a 15-year tenor. Gaia X (New Printer FFG Dual Slotter) is scheduled for startup in the first half of 2026, and Gaia XI (MP#5 Reform) is fully prepared for its planned shutdown between January 19 and February 25, 2026.

As part of its strategic focus, the Company discontinued the gum rosin distillation plant in Rio Grande do Sul during the first quarter of 2025, reinforcing its positioning as a pure-play sustainable packaging company and optimizing capital allocation toward higher-return assets.

Irani maintained strong access to capital markets. In addition to the 6th Green Debenture issuance, the Company preserved solid credit ratings, including “brAA” from S&P Global Ratings and “AA.br” from Moody’s.

Shareholder remuneration remained consistent with the Company’s financial discipline. Dividends paid in 2025 totaled R$ 0.73357 per share, representing a dividend yield of 10.8% based on the December 30, 2024 share price. The Company also executed R$ 22.1 million in share repurchases during the year.

Return on Invested Capital (ROIC) reached 13.3% in the last twelve months, representing an expansion of 2.5 percentage points over 2024 and a spread of 4.4 percentage points above the after-tax cost of debt. This marks the first annual positive ROIC evolution following the completion of the main Gaia Platform investment cycle and reflects consistent value creation above the cost of capital.

Despite continued volatility in OCC (Old Corrugated Containers) prices, which remained on average 33.2% higher year-over-year, Irani demonstrated resilience through its integrated business model, vertical forestry base, energy self-generation and disciplined commercial strategy.

Entering 2026, Irani maintains a strong liquidity position, healthy leverage levels and ongoing expansion projects under execution. The Company remains committed to operational efficiency, sustainable growth and long-term value generation aligned with circular and low-carbon economy principles.