Suzano (SUZB3) Q3 2025 earnings summary

Executive summary

• Achieved a 7% year-over-year reduction in cash cost, now below BRL 800 per ton, driven by operational efficiencies, lower wood and input costs, and FX appreciation.

• Adjusted EBITDA reached R$5.2 billion, down 20% year-over-year, mainly due to lower pulp prices and currency depreciation, partially offset by higher sales volumes and improved efficiency.

• Net income was R$1,961 million, a 39% decrease year-over-year, reflecting lower financial results and reduced net revenue.

• US packaging business and paperboard assets delivered their first positive EBITDA since acquisition.

• Focus remains on extracting value from recent investments, including Suzano Packaging, the new tissue mill in Aracruz, and the JV with Cascades.

Financial highlights

• Leverage in dollar terms increased to 3.3x due to lower LTM EBITDA from reduced pulp prices, while net debt remained stable quarter-on-quarter.

• Adjusted EBITDA margin was 43%, down from 53% a year ago; free cash flow yield (LTM) was 18.1%, up 1.2 p.p. year-over-year.

• Liquidity stood at US$6.5 billion, up from US$5.7 billion a year ago.

• Issued $1 billion in new 10-year bonds at the lowest corporate spread in company history and repurchased short-term bonds, extending average debt maturity to 80 months at a stable 5% cost.

• Net revenue totaled R$12,153 million, a 1% decrease year-over-year, with 81% from exports.

Outlook and guidance

• Confident in delivering the most competitive quarterly cash cost in Q4 2024-2025 and maintaining a full-year average near Q4 2024 levels.

• CAPEX guidance for 2025 reaffirmed at BRL 13.3 billion, with a declining trend expected for 2026 as major projects conclude.

• Further reduction in cash production cost expected for 4Q25, with continued focus on operational efficiency and cost control.

• New tissue mill in Aracruz and JV with K-C/Cascades progressing as planned, with benefits expected from 4Q25.