Klabin Concludes Record Expansion Cycle As Market Keeps Shares Under Pressure

Klabin has completed the largest expansion cycle in its history, after investing around R$29–30 billion in forestry, pulp and paperboard capacity, including major projects such as Puma II and new packaging lines. The cycle leaves the company with a more diversified and integrated portfolio across pulp, papers and packaging, better positioned to benefit from the recent recovery in global pulp prices and stronger export demand, particularly to markets like China. Despite this improved operating backdrop and the start of a deleveraging phase focused on cash generation over the next 18–24 months, Klabin’s shares remain pressured, having posted negative or modest performance in the last year amid concerns over leverage, capital intensity and still-volatile pulp cycles. Analysts see room for re-rating if the company delivers on debt reduction, margin improvement and disciplined capital allocation post-expansion