Suzano (SUZB3) Q2 2026 earnings summary

Executive summary

• Delivered solid operational results and strong free cash flow in Q2 2026, with adjusted EBITDA reaching R$4.7 billion, up from R$4.6 billion in 1Q26 but down from R$6.1 billion in 2Q25.

• Free cash flow was R$3.3 billion, a significant increase from 1Q26 and 27% higher than 2Q25, driven by working capital release and lower capex.

• Successfully closed the Arbex acquisition (51% stake in a global tissue JV with Kimberly-Clark) for US$1.3 billion on July 1, 2026, with integration and efficiency gains underway.

• Leadership transition in industrial operations, with Carlos Aníbal taking over as EVP.

• Net income was R$1.8 billion, a 58% drop from 1Q26 and 64% lower year-over-year, reflecting weaker financial results and higher costs.

Financial highlights

• Net revenue for Q2 2026 was R$11.6 billion, up 6% sequentially but down 13% year-over-year, mainly due to lower pulp sales and FX impacts.

• Pulp sales volume was 2.9 million tons, up sequentially but below the prior year; average export price was $601/ton.

• EBITDA for pulp operations was R$4.2 billion with a 48% margin, driven by higher USD prices.

• Net debt decreased to US$12.8 billion from US$13.0 billion in both 1Q26 and 2Q25; leverage at 3.4x.

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

Outlook and guidance

• Expecting higher demand and stronger sales in H2 2026, with confidence in meeting cash cost guidance of ~R$800/ton.

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

• Net debt and leverage targets in US$ (US$11.0 billion and <2.5x) expected to be achieved in 2027–2028.

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

• Standalone Consumer Goods segment will be disclosed from 3Q26 onwards.