Suzano Reports 1Q26 Results with Strong Operational Performance

Suzano S.A., one of the world’s largest pulp and paper producers, reported its first-quarter 2026 results, highlighting solid operational performance and improved pulp pricing, despite currency headwinds.

Key Highlights

• Net Revenue: R$10.97 billion (↓5% YoY, ↓16% QoQ)

• Adjusted EBITDA: R$4.6 billion (↓6% YoY, ↓18% QoQ)

• EBITDA Margin: 42% (stable YoY)

• Net Income: R$4.3 billion

• Operating Cash Generation: R$2.5 billion

Operational Performance

• Pulp Sales: 2.84 million tonnes (+7% YoY)

• Paper Sales: 378 thousand tonnes (−3% YoY)

• Average Pulp Price: US$562/t (+1% YoY)

According to the chart on page 5, pulp sales declined sequentially due to seasonality but increased year-over-year, driven by stronger demand in Asia and North America.

Business Segment Highlights

Pulp

• Adjusted EBITDA: R$4.06 billion (↓5% YoY)

• EBITDA per tonne: R$1,431/t (↓11% YoY)

• Cash cost (ex-downtime): R$802/t (↓7% YoY)

Performance benefited from higher prices and lower costs but was pressured by FX appreciation and lower volumes.

Paper

• Adjusted EBITDA: R$524 million (↓14% YoY)

• EBITDA per tonne: R$1,385/t (↓12% YoY)

Decline driven by lower prices, reduced volumes, and weaker export markets.

Financial Position

• Net Debt: ~US$13.0 billion

• Leverage: 3.3x (USD basis)

• Free Cash Flow Yield (LTM): 13.6%

The company benefited from FX hedging and derivative gains, contributing to a positive financial result of R$4.6 billion.

Market Outlook

• Pulp market supported by price increases and resilient demand

• Paper demand impacted by seasonality and weaker global markets

• Costs pressured by geopolitical tensions and logistics challenges

Strategic & ESG Update

Suzano continues advancing its ESG strategy, achieving an MSCI rating upgrade to BBB, reflecting improvements in sustainability practices.

Summary

Suzano delivered strong operational results with higher pulp volumes and pricing, but currency appreciation and seasonality weighed on profitability. The company remains financially resilient with strong cash generation and disciplined cost management.