Chilean conglomerate Empresas Copec reported a milestone second-quarter 2026 on August 19, posting adjusted EBITDA exceeding $1 billion for the first time in company history. Net income nearly doubled year-over-year to $440 million, driven by exceptional performance in its energy division and a significant recovery in forestry operations.
Financial results released by the company show broad-based operational strength across major business segments, easily outpacing Wall Street expectations. Revenue reached $9.25 billion, surpassing the $8.46 billion forecast, while earnings per share hit $0.34 to beat the $0.1962 estimate. Shares traded at $6,028.20, up 0.29% following the announcement.
Record Energy Performance and Asset Sales Lift Results
Consolidated adjusted EBITDA reached $1,037 million, marking a 30.1% increase year-over-year and 17.9% sequential growth. Traditional EBITDA climbed to $1,029 million, up 44.3% from the prior year. The energy division delivered a record performance with EBITDA exceeding $600 million, bolstered by favorable inventory revaluation effects, strong industrial margins, and robust demand across Latin American geographies.
Management addressed the sustainability of these energy gains during the earnings presentation. Rodrigo Alvarado, CFO of Empresas Copec, explained that while the division maintains a strong commercial performance trend, the recent quarterly EBITDA of $500–$600 million includes exceptional components compared to historical figures of $300–$400 million. The roughly $150 million per quarter difference stems largely from inventory revaluation effects tied to rising oil prices and industrial margins, which may fluctuate if commodity prices shift.
Meanwhile, the forestry subsidiary Arauco reported EBITDA of $415 million, up from $355 million in the prior year, aided by a 58.9% sequential recovery in forestry EBITDA. This division’s non-operating income benefited from a $124 million gain from the sale of forestry assets in Valdivia involving 29,500 hectares of eucalyptus plantations sold for $217 million to a Chilean forestry investment fund. Additional transactions included the sale of a 50% stake in Puerto Coronel for $65 million, generating a pretax gain of $26 million slated for the third quarter.
Capital Allocation, Debt Structure, and Division Breakdown
Capital expenditures totaled $920 million for the quarter. The vast majority—80%—was allocated to forestry operations, primarily supporting the Sucuriú project in Brazil, which reached 74.5% completion. The project remains 6.4% ahead of schedule and remains on track to start operations in Q4 2027. Energy investments accounted for 17% of CapEx, with the remaining 3% directed elsewhere.
Financial health metrics showed notable improvement. Total financial debt stood at $13.4 billion, offset by cash and equivalents of $2.9 billion, yielding a net debt of $10.4 billion. The net financial debt-to-adjusted EBITDA ratio improved to 3.13 times from 4.09 times a year earlier, though subsidiary debt leverage remains elevated. Arauco accounts for 70% of total debt, reflecting the capital-intensive nature of forestry operations and ongoing development projects. To optimize its maturity profile, the company successfully issued $260 million in bonds carrying 10- and 20-year maturities at favorable rates of 3.34% and 3.46%, alongside a well-structured debt composition featuring significant refinancing needs scheduled across 2026 ($1.6 billion) and 2027 ($1.4 billion).
| Segment | EBITDA / Metric | Key Driver |
|---|---|---|
| Energy (Copec / Terpel) | Over $600 million | Inventory revaluation and industrial margins |
| Forestry (Arauco) | $415 million | Stumpage gains and asset monetization |
| Wood Products | $113 million | Rebound in panel volumes and prices |
| Copper Segment | $287 million | Solid cash cost control at $1.59 |
Diverging Regional Dynamics in Pulp and Fuel Markets
Operational segments experienced contrasting market conditions globally. Pulp production reached 1,119 thousand tons against sales volumes of 1,190 thousand tons, but operating income declined to $54 million from $117 million due to higher costs and lower pulp and sawn timber prices. Unit selling costs ticked upward across all grades, including a 6.5% rise for bleached softwood, 14% for dissolving pulp, and 4.3% for bleached hardwood.
China presented a challenging environment characterized by weak demand for printing, writing, and tissue, prompting local producers to cut operating rates and implement mill stoppages. In contrast, European markets showed solid tissue demand, though momentum softened late in the period. Price disparities reflected these regional splits: NBSK pulp traded at $641 per ton in China compared to $1,650 per ton in Europe, while BHKP stood at $567 per ton in China against $1,398 per ton in Europe.
In domestic energy markets, fuel volumes for Copec decreased 6.6% year-on-year due to higher pricing pressures, while Abastible achieved a 36.5% volume increase in Colombia and grew its market share in Chile to 29.4%.
