Suzano’s New Chapter: How Diversification Is Reshaping Its Business

The company’s third-quarter 2026 results point to a broader business, a changing portfolio and a continued focus on operational competitiveness.

A company’s quarterly results tell more than a story about revenue and profit. They can also reveal how its strategy is evolving.

Suzano’s third-quarter 2026 performance offers a compelling example. The Brazilian company reported adjusted EBITDA of R$5.7 billion, an increase of 9% compared with the same period last year, while net revenue reached R$16.5 billion, up 36%.

But beyond the headline numbers, one development stands out: Suzano is entering a new phase in its business evolution.

A broader business takes shape

The start of operations at Arbex, the joint venture with Kimberly-Clark, marks an important step in Suzano’s expansion into consumer goods.

With Suzano holding a 51% stake, the venture began operations on July 1, 2026, and its financial results have been consolidated into the company’s accounts since then.

The impact was already visible in the third quarter. Suzano’s Consumer Goods segment recorded sales of 299,000 tonnes and net revenue of R$5.0 billion. Arbex contributed R$694 million to EBITDA, while the segment’s total EBITDA reached R$803 million.

This development is significant because it broadens Suzano’s presence beyond its traditional pulp and paper businesses. It also adds a new dimension to the company’s product portfolio and geographic reach.

The strategic question now is how effectively Suzano can integrate this broader platform while maintaining the operational discipline that has long been central to its business.

Pulp remains a powerful earnings engine

Despite the growing contribution from consumer goods, pulp continues to play a central role in Suzano’s financial performance.

In the third quarter, pulp sales totalled 3.19 million tonnes. The average net export price reached US$591 per tonne, an increase of 13% year on year.

The pulp business generated R$4.8 billion in EBITDA, up 5% compared with the third quarter of 2025.

These figures underline the importance of scale, market positioning and cost competitiveness in a business exposed to international prices, foreign exchange movements and global demand conditions.

Suzano’s reported cash production cost, excluding scheduled maintenance downtime, was R$825 per tonne. This metric remains particularly important as the company navigates changes in input costs and the broader operating environment.

Growth requires investment — and discipline

Suzano’s strategy also continues to involve investment in its industrial and product platforms.

The company highlighted ongoing initiatives including a new tissue mill in Aracruz and a fluff capacity expansion in Limeira. These projects reflect its continued development in value-added product categories.

At the same time, capital expenditure during the quarter was R$2.9 billion on a cash basis. Spending on the Cerrado Project was R$29 million, lower than in the previous quarter and consistent with the project’s investment schedule.

The figures point to a company managing multiple investment priorities while keeping a close eye on the timing and allocation of capital.

In a capital-intensive industry, that balance matters. Expansion can create long-term opportunities, but the pace of investment must remain aligned with cash generation, market conditions and balance-sheet capacity.

The financial picture: strong operating performance, continued attention to leverage

Suzano reported net income of R$2.1 billion and operating cash generation of R$3.8 billion in the quarter.

Adjusted free cash flow was R$2.6 billion. Net debt stood at R$76.3 billion, equivalent to US$14.7 billion, with leverage of 3.7 times in US dollars. On a pro forma basis, including Arbex’s last-twelve-month EBITDA, leverage was 3.4 times.

The company also updated its 2026 average pulp cash-cost guidance to approximately R$825 per tonne, reflecting revised assumptions for exchange rates and Brent oil prices.

For investors and industry observers, these indicators highlight an important part of Suzano’s next chapter: converting a broader business platform into sustainable cash generation while maintaining financial discipline.

Sustainability remains part of the strategic agenda

The quarter also included developments in sustainability and financing.

Suzano published its first report aligned with the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations. It also completed its first blended-finance transaction through the Eco Invest programme, supporting the recovery of degraded land, employment and carbon sequestration.

These initiatives reflect the increasing importance of connecting business performance with environmental and social outcomes.

For a company operating at the intersection of forestry, industrial production and global consumer markets, the ability to integrate nature-related considerations into its strategy is an increasingly relevant part of long-term business resilience.

A company in transition

Suzano’s third-quarter results are notable not only for the growth in revenue and adjusted EBITDA, but also for what they reveal about the company’s changing profile.

Arbex expands its consumer goods presence. Pulp remains a significant earnings contributor. Investments in tissue and fluff strengthen the company’s position in adjacent product categories. Meanwhile, cost guidance and leverage remain important indicators of the discipline required to support this evolution.

The next phase will be defined by execution: integrating the expanded portfolio, sustaining competitiveness, allocating capital carefully and translating strategic investments into long-term value.

The broader takeaway is clear: Suzano is becoming a more diversified business, while continuing to rely on the operational strengths that built its position in the global pulp and paper industry.

Based on Suzano’s third-quarter 2026 results, released on November 5, 2026.