Suzano (SUZB3) Q1 2026 earnings summary

Executive summary

• Delivered solid Q1 2026 results with higher pulp prices and volumes year-over-year, supported by operational efficiency and cost control, though sequential results were impacted by seasonality and currency appreciation.

• Achieved a 10% reduction in headcount year-over-year, aligning with cost control initiatives.

• Business model demonstrated resilience amid geopolitical tensions, supported by robust hedging and structured contracts.

• JV with Kimberly-Clark progressing as planned, with closing expected in Q3 2026.

• ESG progress recognized with MSCI ESG rating upgrade to BBB.

Financial highlights

• Pulp sales volume reached 2.84 million tons in Q1 2026, up nearly 200,000 tons year-over-year, but down from 3.4 million in 4Q25.

• Adjusted EBITDA was R$4.6 billion, down from R$5.6 billion in 4Q25 and R$4.9 billion in 1Q25; consolidated EBITDA margin at 42%.

• Net debt increased to US$13.0 billion, mainly due to dividends, CapEx, and interest payments.

• Free cash flow yield near 14%; operating cash generation was R$2.5 billion, down sequentially.

• Net revenue for 1Q26 was R$10,968 million, down 16% from 4Q25 and 5% from 1Q25.

Outlook and guidance

• Expect average cash costs in 2026 to be below 2025 levels, despite geopolitical cost pressures.

• Q2 2026 sales volumes and prices in Brazil and U.S. projected to improve, with price increases and cost pass-throughs.

• Annual maintenance at Suzano Packaging in May will temporarily impact production costs, but no sales impact expected.

• CapEx guidance for 2026 maintained, with expectations for lower CapEx in coming years.

• Company maintains focus on long-term strategy, sustainability, and innovation, with ongoing investments in packaging and tissue capacity.