Suzano (SUZB3) Q2 2025 earnings summary

Executive summary

• Pulp and paper sales volumes rose sharply year-over-year, with pulp up 28% and paper up 24%, driven by new capacity and strong demand in Asia and North America.

• Adjusted EBITDA reached R$6.1 billion, up 25% sequentially but down 3% year-over-year, as higher volumes offset lower prices and increased costs.

• Net income was R$5.0 billion, reversing a loss in 2Q24, but down 21% from 1Q25 due to lower financial results.

• Announced a US$1.7 billion joint venture with Kimberly-Clark, expanding global tissue operations.

• Entered a R$1.3 billion biological asset exchange with Eldorado, increasing 2025 capex guidance.

Financial highlights

• Net revenue rose 16% year-over-year to R$13.3 billion, with 83% from exports.

• Adjusted EBITDA margin was 46%, up 4 p.p. sequentially but down 9 p.p. year-over-year.

• Free cash flow yield (LTM) reached 20.3%, up 8.3 p.p. year-over-year.

• ROIC (LTM) improved to 13.1%, up 1.7 p.p. from 2Q24.

• Net debt/Adjusted EBITDA was 3.1x in USD and 3.0x in BRL.

Outlook and guidance

• 2025 capex guidance raised from R$12.4 billion to R$13.3 billion due to the Eldorado timber transaction.

• Cerrado Project capex nearly complete, with R$0.4 billion remaining in 2025.

• US packaging operations expected to achieve positive EBITDA from 3Q25.

• The Kimberly-Clark JV is expected to close by mid-2026, pending regulatory approvals.

• Cash production cost decline reaffirmed for 2H25.