Arauco Posts $99 Million Nine-Month Profit
The Chilean forestry company swung from a loss a year earlier as pre-tax profit and sales rose.
Updated on Nov. 6, 2026 in Corporate Finance
Arauco reported a net profit of $99 million for the first nine months of 2026, compared with a $10 million net loss in the same period of 2025. Sales rose to $4,681 million from $4,566 million, though adjusted EBITDA fell to $985 million from $1,013 million.
Why it matters
The swing to profit reflects higher selling prices in the third quarter and higher sales volume year to date, even as gross margin declined and operating cash flow fell to $646 million from $992 million. Investing outflows of $1,811 million, mainly for the Sucuriú project in Brazil, show the company continuing to commit capital to expansion.
Pre-tax profit rose to $87 million from $31 million, while total assets stood at $22,774 million on September 30, 2026. The figures are company-reported and do not indicate how the fourth quarter will compare.
The players
Arauco
Arauco is a Chilean forestry and forest products company with operations across South America, producing pulp, wood and panels.
The details
Third-quarter billing rose 6.4% on higher selling prices, and year-to-date billing rose 2.6% on higher sales volume. Pulp sales reached $2,339 million and wood sales reached $2,341 million, while the company cited weak printing paper demand in China and a recovery in panel sales in South America.
Timeline
2025, third quarter: Arauco's L3 mill underwent its annual maintenance shutdown and the Valdivia plant stopped after an incident.
Early 2026: Lumber sales fell due to the Middle East war.
2026, first nine months: Arauco reported the $99 million net profit.
September 30, 2026: Total assets stood at $22,774 million.
Market Dynamics
Arauco's results reflect pressure in Chinese printing paper demand, which weighed on its pulp business even as South American panel sales recovered. The company's profit swing came against that backdrop of uneven demand across its product lines.
Investors tracking forestry and pulp companies can note that Arauco moved from a net loss to a profit over the period, though operating cash flow declined sharply. Shareholders should weigh the drop in cash generation against the profit improvement when assessing the company's position.
The takeaway
The profit recovery came with lower EBITDA and cash flow, a reminder that headline earnings and cash generation can diverge. Readers should watch both measures over the coming quarters.
Further reading
For broader context on company earnings and balance sheets, see Corporate Finance.
