Suzano (SUZB3) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA reached R$ 4.7 billion, up 3% sequentially but down 23% year-over-year, driven by higher pulp and paper prices and volumes, but offset by higher costs and FX impacts.

• Free cash flow was R$ 3.3 billion, up from R$ 586 million in 1Q26 and 27% higher than 2Q25, supported by working capital release and positive derivative settlements.

• Net income was R$ 1.8 billion, a 58% drop from 1Q26 and 64% lower year-over-year, mainly due to a weaker financial result and higher COGS.

• Completed acquisition of a 51% stake in a joint venture with Kimberly-Clark for US$ 1.3 billion, expanding the international tissue business.

• Liquidity stood at US$ 6.9 billion, improving from US$ 6.1 billion in 1Q26 and US$ 5.9 billion in 2Q25.

Financial highlights

• Net revenue was R$ 11.6 billion, up 6% sequentially but down 13% year-over-year, mainly due to lower pulp sales volume and FX depreciation.

• Adjusted EBITDA margin was 41%, down 1 p.p. from 1Q26 and 5 p.p. from 2Q25.

• Net debt stood at R$ 66.1 billion (US$ 12.8 billion), with leverage at 3.4x in US$ terms.

• ROIC (LTM) was 10.3%, down 2.8 p.p. year-over-year.

• Free cash flow yield (LTM) was 19.2%.

Outlook and guidance

• Maintains guidance for pulp cash cost ex-downtime at approximately R$ 800/t for 2026, assuming average FX of R$ 5.07/US$ and Brent at US$ 84/bbl.

• Net debt and leverage targets in US$ are US$ 11.0 billion and below 2.5x, expected to be achieved in 2027–2028.

• Arbex integration is a focus for value creation and efficiency gains in H2.

• Pulp market outlook constructive for H2, especially in Asia, with seasonal demand and potential for higher order intake.

• No significant maintenance downtimes expected in H2, supporting lower cash costs.