Suzano (SUZB3) Q4 2025 earnings summary

Executive summary

• Achieved record sales and shipment 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.

• Strategic initiatives included the acquisition of a 51% stake in a global joint venture with Kimberly-Clark and successful integration of US paperboard assets, supporting business growth and international expansion.

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

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

Financial highlights

• Generated $400 million in free cash flow in Q4 2025, reducing net debt to $12.6 billion and leverage to 3.2x; liquidity increased to US$6.6 billion.

• Adjusted EBITDA for 2025 was R$21.7 billion, with Q4 2025 EBITDA at $4.8 billion (up 8% QoQ) and R$5.6 billion (up 7% QoQ), supported by higher volumes and better prices.

• Net income was R$116 million in Q4 2025, a recovery from a R$6.7 billion loss in Q4 2024.

• Free cash flow yield (LTM) was 16.7%, and ROIC (LTM) was 11.5%.

• Achieved lowest cash cost since Q4 2021 at BRL 778/ton, a 3% reduction from Q3 2025.

Outlook and guidance

• Expect lower sales volumes in Q1 2026 due to seasonality, but anticipate price improvements from announced increases and favorable pulp market dynamics.

• 2026 cash production cost of pulp projected to remain broadly in line with Q4 2025 levels; continued focus on reducing operational disbursement and net debt.

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

• CAPEX guidance for 2026 reduced by nearly 20% year-on-year, with a capital budget of R$10.9 billion.

• Joint venture with Kimberly-Clark on track for mid-2026 closing, expected to enhance competitiveness.