Klabin Advances Industrial Modernization, Completes Scheduled Maintenance Shutdown and Extends Project Financing Maturities

Klabin reported continued progress on industrial modernization and operational investment initiatives in the third quarter of 2026, alongside the completion of scheduled maintenance at its Otacílio Costa facility in Santa Catarina, Brazil. The company also reported progress in the ramp-up of its PM28 paper machine and amendments to financing agreements associated with the Puma II Project.

These initiatives form part of Klabin’s broader focus on operational reliability, production efficiency, and long-term financial management.

Scheduled Maintenance Shutdown at Otacílio Costa

Klabin completed a planned maintenance shutdown at its Otacílio Costa facility during the third quarter of 2026. The shutdown affected containerboard, including kraftliner production, and lasted 15 days.

The maintenance work had a direct cost of R$25 million. The shutdown lasted five days longer than the previous maintenance event at the facility in the second quarter of 2025, primarily because of additional work on the recovery boiler.

Following completion of the maintenance activities, the mill resumed operations and was reported to be operating normally.

The shutdown temporarily affected containerboard production and sales. Containerboard sales volume reached 148,000 metric tons in 3Q26, down 10% compared with the same period of 2025.

Industrial Projects and Production Expansion

PM28 ramp-up

Klabin continued advancing the operational ramp-up of PM28, contributing to the growth of coated board production and sales. During 3Q26, coated board sales volume reached 231,000 metric tons, an increase of 9% compared with the third quarter of 2025.

Coated board revenue increased 10% year over year to R$1.306 billion, supported by higher sales volumes, particularly in export markets, and an improved product and regional sales mix.

Monte Alegre modernization

The company continued investing in the modernization of the recovery boiler at its Monte Alegre facility in Paraná. Investment in the Monte Alegre modernization program reached R$511 million during the first nine months of 2026, compared with R$346 million in the same period of 2025.

The modernization program was a significant contributor to the company's capital expenditure during the reporting period.

Capital Investment and Operational Continuity

Klabin invested R$754 million in capital expenditure during 3Q26, bringing total investment for the first nine months of 2026 to R$2.250 billion, an increase of 24% compared with the same period of the previous year.

The main investment categories for the first nine months of 2026 were:

• Forestry and standing wood: R$846 million, primarily reflecting higher planting volumes.

• Operational continuity: R$827 million, supporting the ongoing operation and maintenance of industrial facilities.

• Monte Alegre modernization: R$511 million, directed toward the recovery boiler modernization program.

• Special projects: R$66 million.

The company’s disclosed capital expenditure guidance for 2026 totals R$3.3 billion.

Puma II Project Financing Amendments

On October 15, 2026, Klabin announced amendments to financing agreements associated with the implementation of the Puma II Project.

The agreements include financing from the Inter-American Development Bank Invest (IDB Invest), the International Finance Corporation (IFC), and the Japan International Cooperation Agency (JICA), as well as loans from commercial banks.

Under the amendments described in the earnings release, the maturity of the A Loan was extended from 2032 to 2034, while the maturity of the B Loan was extended from 2029 to 2033.

The amendments represent a change to the maturity profile of the project-related financing. The earnings release does not specify the complete revised financing terms in this section.

Maintenance Planning for 2027

Klabin's preliminary maintenance schedule for 2027 indicates that all of its pulp and paper units are expected to undergo general maintenance shutdowns during the year.

The facilities identified in the preliminary schedule are Monte Alegre and Ortigueira in Paraná, and Otacílio Costa and Correia Pinto in Santa Catarina.

The schedule remains preliminary, and the timing of individual shutdowns should be confirmed against subsequent company announcements.

Conclusion

Klabin’s third-quarter activities highlight its continued commitment to maintaining industrial reliability, modernizing production facilities, advancing paper machine operations, and managing long-term project financing.

The completion of maintenance at Otacílio Costa, ongoing investment in Monte Alegre, continued progress with PM28, and the extension of Puma II financing maturities are key developments in the company’s operational and capital management during 2026.