Suzano (SUZB3) Q4 2025 earnings summary

Executive summary

• Achieved record sales and shipment volumes in pulp and paper for 2025, with pulp up 4% and paper up 10% year-over-year in 4Q25, driven by operational excellence, supply chain performance, and new operations.

• Operational efficiencies and the Ribas do Rio Pardo operation contributed to the lowest cash production cost since 2021.

• Strategic initiatives included the acquisition of a 51% stake in a global JV with Kimberly-Clark and the integration of US paperboard assets.

• Ceased operations at the high-cost Rio Verde Mill to improve cost competitiveness.

• Paper and packaging business delivered strong volumes in Brazil and the U.S., with improvements at Pine Bluff and Limeira mills.

Financial highlights

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

• Adjusted EBITDA for 2025 was R$21.7 billion, with Q4 EBITDA at R$5.6 billion and margin at 43%.

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

• Paid BRL 1.4 billion in dividends and completed a 15 million share buyback; new program for up to 40 million shares announced.

• Liquidity increased to US$6.6 billion, with cash and equivalents plus stand-by facilities totaling R$32.4 billion.

Outlook and guidance

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

• Cash production cost of pulp in 2026 expected to remain broadly in line with Q4 2025 levels.

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

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

• Focus remains on reducing operational disbursement and net debt, supporting a declining cost trend toward 2027.