São Paulo, May 8th, 2025. Suzano S.A. (B3: SUZB3 | NYSE: SUZ), one of the world’s largest integrated pulp and paper producers, announces today its consolidated results for the first quarter of 2025 (1Q25).
HIGHLIGHTS
- Pulp sales of 2,651 thousand tonnes (10% vs. 1Q24).
- Paper sales¹ of 390 thousand tonnes (25% vs. 1Q24).
- Adjusted EBITDA2 and Operating cash generation3 : R$ 4.9 billion and R$2.6 billion, respectively.
- Adjusted EBITDA2 /t from pulp of R$1,605/t (-1% vs. 1Q24).
- Adjusted EBITDA2 /t from paper of R$1,568/t (-25% vs. 1Q24).
- Average net pulp price in export market: US$556/t (-11% vs. 1Q24).
- Average net paper price1 of R$7,540/t (12% vs. 1Q24).
- Pulp cash cost ex-downtimes of R$859/t (6% vs.1Q24).
- Leverage of 3.0 times in USD and 3.1 times in BRL.
- Free Cash Flow Yield ("FCF Yield" - LTM ) of 18.5% (+3.2 p.p. vs. 1Q24).
EXECUTIVE SUMMARY
The pulp market showed a favorable performance in the first 2 months of 2025, with successive price increases fully implemented, in light of the effects of limited supply caused by the downtime of an important integrated paper producer in China as well as the conversion of production to dissolving pulp by one of the sector's producers. In March, market sentiment remained positive regarding pulp prices and the implementation of the new price increase announced for the period, especially after Shanghai Pulp Week - an important event in the P&P sector. However, the more uncertain global macroeconomic environment at the end of the quarter had a negative impact on market dynamics.
The results of the company's pulp business were impacted by the lower volume sold, given the commercial strategy of inventory restocking to normal levels, and the lower realized price, in turn due to the invoicing of backlogs for some regions. Operating performance was according to plan, with an increase in the cash production cost, mainly due to the effect of scheduled maintenance downtimes. This combination of factors resulted in a decrease in adjusted pulp EBITDA per ton compared to the previous quarter. In the paper business unit, the sales volume decreased mainly due to seasonality, while prices increased in relation to the previous quarter and the same period in 2024. Consolidated adjusted EBITDA in the quarter amounted to R$4.9 billion, down 25% on 4Q24 and up 7% compared to the same period in 2024. Operating cash generation reached R$2.6 billion in the quarter, representing a 36% reduction compared to 4Q24 and a 24% increase year-on-year.
Regarding the performance of the paperboard assets acquired by the company in the United States in October 2024 (now Suzano Packaging US), 1Q25 results show an operational and commercial evolution of the business, fully in line with the company's strategy.
In terms of financial management, net debt measured in dollars stood at US$12.9 billion, in a quarter marked by the disbursement of interest on equity of R$2.2 billion. Leverage in USD, on the other hand, stood at 3.0 times, given the slight decrease in Adjusted EBITDA in the last 12 months and the minor increase in net debt. The foreign exchange hedging policy continued to play its part, with average strikes of Zero Cost Collar operations contracted at 5.44 (put) and 6.26 (call) and a notional value of US$7.3 billion.
Regarding the financial execution of the Cerrado project (Ribas do Rio Pardo Unit), the company has completed approximately 97% of the total capex disbursement, with R$0.6 billion remaining to be paid still in 2025.
