Suzano (SUZB3) Q4 2025 earnings summary

Executive summary

• Achieved record sales volumes in pulp (12.5 million tons) and paper/packaging (1.5 million tons) for 2025, with strong year-over-year growth and operational excellence across key regions.

• Net sales reached R$50.1 billion in 2025, up 5.7% year-over-year, with net income of R$13.4 billion, reflecting a return to profitability.

• Major acquisition announced: 51% stake in a global tissue business from Kimberly-Clark for US$1.73 billion, expected to close in mid-2026, supporting international expansion.

• Operational efficiencies and the Ribas do Rio Pardo operation contributed to the lowest cash production cost since 2021, supporting competitiveness.

• Demonstrated resilience and competitiveness with strong operational and free cash flow despite a low price cycle.

Financial highlights

• Adjusted EBITDA for 2025 was R$21.7 billion, with a margin of 43.4%, and free cash flow reached $400 million in Q4 2025.

• Net debt decreased to US$12.6 billion, leverage at 3.2x by end of 2025, and liquidity increased to US$6.6 billion.

• Net income was R$13.4 billion, rebounding from a loss in 2024.

• Gross profit was R$16.2 billion, with cash and equivalents rising to R$15.2 billion.

• EBITDA margin for pulp remained robust at 50% for 2025.

Outlook and guidance

• 2026 cash production cost of pulp projected to remain broadly in line with Q4 2025 levels, with further cost improvements expected.

• Management approved a 2026 capital budget of R$10.9 billion, with reduced CAPEX guidance and focus on operational efficiency.

• Maintenance downtimes in Q1 and Q2 2026 will constrain pulp availability and require inventory buildup.

• Kimberly-Clark JV and tissue acquisition expected to close mid-2026, expanding global reach.

• New revolving credit facility of US$1.78 billion arranged in February 2026 to enhance liquidity.