Suzano (SUZB3) Q4 2024 earnings summary

Executive summary

• Achieved record sales and EBITDA in 2024, driven by the Ribas do Rio Pardo mill ramp-up, strong operational execution, and strategic acquisitions, including US packaging assets and a stake in Lenzing AG.

• Integration of Suzano Packaging US (Pactiv Evergreen assets) advanced, supporting global expansion and improved contract terms for 2025.

• Maintained tight pulp inventories and improved competitiveness through cost reductions and efficiency gains.

• Net income turned to a loss of R$6.7–7.0 billion, mainly due to negative financial results from BRL depreciation and derivative losses.

• Leverage improved to 2.9x Net Debt/EBITDA (USD basis), with net debt at US$12.8 billion.

Financial highlights

• Net revenue for 2024 was R$47.4 billion, up 19% year-over-year, with adjusted EBITDA reaching R$23.8 billion and a margin of 50%.

• Pulp sales volume reached 10.9 million tons, up from 10.2 million in 2023; paper and packaging at 1.44 million tons, up 11%.

• Operating cash flow was R$16.2 billion, up 40% year-over-year.

• Net debt ended 2024 at US$12.8 billion; liquidity at US$5.7 billion.

• Returned R$4.3 billion to shareholders via buybacks and interest on equity.

Outlook and guidance

• 2025 priorities include maintaining high service quality, leveraging new capacities, and promoting fiber replacement in a growing hardwood pulp market.

• Expect higher pulp sales volume in 2025 as Ribas mill reaches full capacity; cash cost projected to remain flat versus Q4 2024, with a temporary uptick in Q1.

• Approved 2025 capex budget of R$12.4 billion, with R$7.8 billion for maintenance.

• No transformational M&A planned; focus remains on value-creating downstream opportunities and deleveraging.