Suzano (SUZB3) Q4 2024 earnings summary

Executive summary

• Achieved record sales volumes in 2024, driven by the Ribas do Rio Pardo mill ramp-up, strong operational execution, and successful integration of new assets, especially in the U.S. and Brazil.

• Integration of Suzano Packaging US (Pactiv Evergreen assets) added 870 employees and contributed to higher sales and global expansion.

• Maintained tight pulp inventories and improved competitiveness through cost reductions and efficiency gains.

• Adjusted EBITDA reached R$23.8 billion for 2024, with a 56% margin in the pulp business.

• Net income turned to a loss of R$6.7 billion, mainly due to negative financial results from BRL depreciation and derivative losses.

Financial highlights

• Full-year 2024 EBITDA reached R$23.8 billion, up from R$18.3 billion in 2023; operating cash generation at R$16.2 billion.

• Net debt ended 2024 at US$12.8 billion, with net debt-to-EBITDA at 2.9x (USD basis), improved from 3.1x in 4Q23.

• Pulp sales volume reached 10.9 million tons, up from 10.2 million in 2023; paper and packaging at 1.2 million tons.

• Financial results impacted by a -$15.6 billion accounting loss due to FX variation and hedge mark-to-market.

• Shareholder remuneration in 2024 totaled R$4.3 billion, including R$2.8 billion in buybacks and R$1.5 billion in interest on equity.

Outlook and guidance

• Expects higher pulp sales volume in 2025 as Ribas mill reaches full capacity; U.S. paperboard demand projected to remain robust.

• Cash cost ex-downtime for 2025 expected to be flattish versus Q4 2024, with a one-off increase in Q1 due to maintenance downtimes.

• Management approved a 2025 capex budget of R$12.4 billion, with R$7.8 billion for industrial and forestry maintenance.

• No transformational M&A deals planned; focus remains on value-creating, scalable downstream opportunities.

• Ongoing focus on deleveraging.