Suzano Reports R$4.7 Billion Adjusted EBITDA and R$3.3 Billion Free Cash Flow in 2Q26

Suzano S.A. reported adjusted EBITDA of R$4.705 billion and adjusted free cash flow of R$3.3 billion for the second quarter of 2026, with results supported by higher pulp and paper prices and sales volumes.

Consolidated net revenue totaled R$11.59 billion, up 6% from the first quarter of 2026 and down 13% from the second quarter of 2025. Adjusted EBITDA increased 3% quarter on quarter but declined 23% year on year. Net income was R$1.807 billion, compared with R$4.312 billion in the previous quarter and R$5.012 billion a year earlier. Operating cash generation reached R$2.885 billion, up 14% from 1Q26 and down 30% year on year.

Pulp sales totaled 2.897 million tonnes, increasing 2% from the previous quarter, mainly due to higher volumes to Europe and North America, while declining 11% year on year, primarily due to lower volumes shipped to Asia. Paper sales reached 406,000 tonnes, up 7% quarter on quarter and down 1% from the same period of 2025.

The average net price for pulp sold by Suzano was US$599 per tonne, up 7% from 1Q26 and 8% from 2Q25. The average net export price was US$601 per tonne. Average hardwood pulp prices increased 3.4% in China and 13.8% in Europe compared with the previous quarter. In Brazilian reais, Suzano's average net pulp price was R$3,023 per tonne.

Pulp production cash cost excluding downtimes was R$843 per tonne, up 5% from 1Q26 and 1% year on year. Higher input prices, particularly for natural gas, caustic soda and chlorine dioxide, together with higher wood, diesel and logistics costs, contributed to the increase. Suzano said some cost pressures reflected indirect effects from the conflict in the Middle East.

Pulp segment adjusted EBITDA totaled R$4.184 billion, up 3% from the previous quarter and down 22% year on year. Paper segment performance remained stable quarter on quarter, as higher prices and volumes were largely offset by higher cash costs.

Suzano's net debt measured in U.S. dollars totaled US$12.8 billion, down 2% from the previous quarter. Leverage stood at 3.4 times in U.S. dollar terms and 3.3 times in Brazilian real terms. During the quarter, the company recorded R$147 million in positive cash adjustments from its hedge portfolio, helping mitigate energy cost pressures.

On July 1, 2026, Suzano completed the formation of its joint venture with Kimberly-Clark focused on the international consumer goods, or tissue, business. Suzano acquired a 51% stake through a payment of US$1.3 billion, equivalent to R$6.7 billion. At the transaction date, the joint venture had approximately US$1.0 billion in net debt, primarily related to financing obtained as part of the transaction. The purchase price remains subject to customary adjustments.