Suzano (SUZB3) Q1 2026 earnings summary

Executive summary

• Delivered solid Q1 2026 results with higher pulp sales volumes and prices year-over-year, supported by operational efficiency and robust hedging, though sequential results were impacted by seasonality and BRL appreciation.

• Adjusted EBITDA was R$4.6 billion, down 18% from 4Q25 and 6% from 1Q25; operating cash flow was R$2.5 billion, down 31% sequentially and 4% year-over-year.

• Net income reached R$4.3 billion, up from R$116 million in 4Q25 but down 32% from 1Q25, mainly due to financial result variations and lower revenue.

• ESG progress recognized with MSCI ESG rating upgrade to BBB.

• JV with Kimberly-Clark progressing as planned, with closing expected in Q3 2026.

Financial highlights

• Net revenue for Q1 2026 was R$10.97 billion, down 16% from 4Q25 and 5% year-over-year, with 81% from exports.

• Net debt was US$13.0 billion (R$68.1 billion), up from 4Q25, mainly due to dividends, CapEx, and interest payments; leverage at 3.3x (USD basis).

• Free cash flow yield (LTM) was 13.6%, down 4.9 p.p. year-over-year.

• Adjusted EBITDA margin was 42%, stable year-over-year.

• Cash cost (ex-stoppages) in Q1 2026 at R$802/ton, up 3% sequentially, down 7% year-over-year.

Outlook and guidance

• Management expects improved sales volumes and pricing in Q2 2026, with price increases and cost pass-throughs in Brazil and the U.S.

• CapEx guidance for 2026 maintained at R$12.9 billion, with expectations for lower CapEx in coming years.

• FX and Brent hedging portfolios expected to further strengthen business resilience.

• No material operational or financial impacts identified from Middle East geopolitical instability as of March 31, 2026.

• Annual maintenance at Suzano Packaging in May will temporarily impact production costs, but no sales impact expected.