BRAZIL · COMPANIES
Key Facts
- The company Dexco, a Brazilian maker of wood panels and bathroom fixtures, lost R$142 million (about US$26 million) in the quarter.
- The cause One-off charges of R$136.7 million (about US$25 million), with no cash outlay, drove the loss.
- The core business Sales rose 9.8% to R$2.33 billion (about US$427 million); core operating profit rose 31.6%.
- The balance sheet Net debt fell to R$4.78 billion (about US$875 million), or 2.36 times adjusted EBITDA, the operating-profit measure.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
A Brazilian building-materials group reported a loss for a reason that has little to do with its everyday business. Dexco, based in São Paulo, said on Wednesday 4 November 2026 that it lost R$142 million (about US$26 million) in July to September, against a profit of R$14.2 million (about US$2.6 million) a year earlier.
For US readers, the report shows a Brazilian industrial group with growing sales and a loss caused by restructuring, at a time when our data on Brazil’s factory output points to a slowdown. Dexco’s shares trade on B3, the São Paulo stock exchange, as DXCO3.
What Happened
Dexco says one-off items, which it calls non-recurring, cost it R$136.7 million (about US$25 million) in the quarter, with no cash leaving the company. Of that, R$118.4 million (about US$22 million) came from restructuring and the closing of operations, and R$11.8 million (about US$2 million) from a lower valuation of stakes held through DX Ventures, its corporate venture fund for start-ups.
Without those charges, the recurring net loss was only R$5.5 million (about US$1 million). Over nine months, Dexco has a net loss of R$55.4 million (about US$10 million), but its recurring net profit is R$100.2 million (about US$18 million), up 41.2%.
The Factories Behind the Charge
The group sold its ceramic-tile plant in Urussanga, in Santa Catarina state, for R$170 million (about US$31 million), of which it received R$153 million (about US$28 million). Its board also decided on 19 October 2026 to close a bathroom-fixtures factory in Cabo de Santo Agostinho, in Pernambuco state, and move that output to São Paulo state.
Selling and closing plants can force a company to write down machinery and inventory. Dexco had warned in advance that it would book a large non-cash charge in the quarter.
Sales and Profit Margin
Net revenue rose 9.8% to R$2.33 billion (about US$427 million). Wood sales grew 16.2%, while metals and bathroom fixtures fell 2.1% and ceramic tiles fell 5.2%.
EBITDA, which is operating profit before interest, tax and depreciation, fell 11.4% to R$420.7 million (about US$77 million) after the one-off charges. Adjusted for them, the recurring figure rose 31.6% to R$585.4 million (about US$107 million), and the margin widened by 4.2 percentage points to 25.1%.
Debt and Cash
Net debt fell 6.9% from the previous quarter to R$4.78 billion (about US$875 million). That equals 2.36 times its adjusted EBITDA, a common test of how heavy debt is.
Free cash flow, the money left after running costs and investment, reached R$636 million (about US$116 million) in the quarter, against R$121 million (about US$22 million) in the second. The chief executive, Raul Guaragna, called it a strong quarter with numbers that point to a good trend.
What It Means for You
If you hold Brazilian stocks through a US fund, the loss is mostly a restructuring charge, since the one-off items explain almost all of it. Sales, recurring operating profit and cash flow all improved.
Consumers will see no change for now, because Dexco still sells its panels, fixtures and tiles in Brazil. Building-materials sales are also a gauge of home renovation and construction, which our report on Brazil’s growth forecast follows.
What Is Not Known
The company has not said whether more factories will be sold or closed. It is also unclear how soon the changes will lower costs.
Share-price reaction is not covered here, and we make no forecast for the stock. We converted reais at 5.46 per US dollar, the rate of 5 November 2026 from RT, a financial data provider.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
What Does Dexco Make?
Dexco, formerly Duratex, makes wood panels, bathroom fixtures and fittings, and ceramic tiles. It is based in São Paulo.
Why Did Dexco Report a Loss in the Third Quarter of 2026?
It booked R$136.7 million (about US$25 million) of one-off charges with no cash outlay, mostly for restructuring and closing operations. Without them, the loss was R$5.5 million (about US$1 million).
Did Dexco’s Sales Grow?
Yes. Net revenue rose 9.8% to R$2.33 billion (about US$427 million), led by a 16.2% rise in wood sales.
How Much Debt Does Dexco Have?
Net debt was R$4.78 billion (about US$875 million) at the end of September, or 2.36 times adjusted EBITDA. That is 6.9% lower than a quarter earlier.
Sources: Dexco S.A., third-quarter 2026 earnings release and material-fact notices, 4 November 2026; Brazil’s securities regulator (CVM), company filings, 4 November 2026; RT financial data provider, USD/BRL rate, 5 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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