Suzano (SUZB3) Q2 2025 earnings summary

Executive summary

• Pulp and paper sales volumes rose sharply year-over-year, with pulp up 28% and paper up 24% in 2Q25, driven by higher production and new capacity ramp-up.

• Adjusted EBITDA reached R$6.1 billion in 2Q25, up 25% sequentially but down 3% year-over-year, reflecting higher volumes but lower pulp prices.

• Net income for 2Q25 was R$5.0 billion, reversing a loss in 2Q24, mainly due to positive financial results from currency movements and derivatives.

• Announced a US$1.7 billion joint venture with Kimberly-Clark, acquiring a 51% stake in a global tissue business, expected to close by mid-2026.

• Strong operating cash generation and free cash flow, with FCF yield at 20.3% LTM.

Financial highlights

• Net revenue in 2Q25 was R$13.3 billion, up 16% year-over-year, with 83% from exports.

• Adjusted EBITDA margin was 46% in 2Q25, down from 55% in 2Q24 but up 4 p.p. sequentially.

• Net debt stood at R$70.8 billion (US$13.0 billion), with leverage at 3.1x in USD and 3.0x in BRL.

• Free cash flow reached R$989 million in 2Q25, with adjusted FCF at R$2.6 billion, up 5% sequentially and 36% year-over-year.

• ROIC (LTM) improved to 13.1%, up 1.7 p.p. year-over-year.

Outlook and guidance

• 2025 capex guidance revised upward to R$13.3 billion due to a biological asset transaction with Eldorado.

• The Kimberly-Clark JV is expected to close by mid-2026, pending regulatory approvals.

• Cash production cost decline reaffirmed for 2H25, with pulp cash cost ex-downtime at R$832/t.

• US packaging operations expected to achieve positive EBITDA from 3Q25.

• Strategic focus on competitiveness, JV integration, and deleveraging.