Suzano reported Q1 2026 results showing solid operational performance and higher pulp prices, but earnings were pressured by currency effects. The results were released April 29, 2026.
Net revenue reached BRL 11.0 billion, while net income totaled BRL 4.3 billion.
The company posted adjusted EBITDA of R$4.6 billion and operating cash generation of R$2.5 billion. However, EBITDA declined both sequentially and year-over-year, mainly due to the appreciation of the Brazilian real against the U.S. dollar.
Pulp sales reached 2.835 million tonnes, up 7% compared to the same period last year, while paper sales declined 3% to 378,000 tonnes.
Pulp prices rise, but FX offsets gains
The global pulp market showed positive momentum during the quarter, supported by successive price increases and stronger paper demand, despite seasonal patterns and geopolitical uncertainty.
Average realized pulp prices increased to approximately $562 per tonne in export markets. However, the stronger Brazilian real reduced revenue in local currency terms, offsetting gains from higher prices and increased volumes.
Over the 12-month period, Suzano reported record pulp sales of 12.7 million tonnes.
Sequentially, pulp sales declined due to seasonality, particularly in Asia and North America.
Market conditions were shaped by:
- Supply constraints and maintenance downtime
- Logistics disruptions linked to geopolitical tensions
- Strong demand in China, with paper production up 14.7% year-over-year
- Rising energy and chemical costs in Europe
Costs remain under control
Cash production costs (excluding downtime) declined 7% year-over-year to R$802 per tonne, supported by lower input costs and favorable currency effects.
However, costs increased slightly compared to the previous quarter due to higher consumption of materials and energy, as well as lower production volumes.
Paper segment pressured by demand and pricing
Paper demand trends varied by region. In Brazil, demand remained relatively stable with growth in coated papers and tissue. In contrast, North America and Europe saw weaker demand, while Latin America recorded modest growth.
Suzano’s paper sales declined due to seasonal factors and weaker international demand, particularly in U.S. packaging operations.
Average paper prices fell year-over-year, contributing to a decline in adjusted EBITDA for the segment.
Financial position and outlook
Net debt increased to $13.0 billion, with leverage rising slightly to 3.3x.
The company said it maintained its hedging strategy to mitigate currency and energy cost volatility, generating a positive cash impact during the quarter.
Looking ahead, Suzano expects continued uncertainty driven by geopolitical developments and currency fluctuations, although pulp market fundamentals remain supported by supply constraints and steady demand.
ESG progress
Suzano reported an upgrade of its ESG rating by MSCI to BBB, reflecting improvements in its sustainability practices.
Suzano produces market pulp and paper products, with operations primarily in Brazil. The company supplies fibre to global markets across packaging, tissue and specialty paper segments. It also develops bio-based products derived from eucalyptus fibre for industrial applications and renewable materials.
