Suzano recorded sequential gains in revenue, adjusted EBITDA and operating cash generation in the second quarter of 2026, supported by higher pulp prices and stronger sales volumes. Year-on-year results, however, remained under pressure from currency movements, lower pulp shipments and rising costs.
Net revenue reached R$11.59 billion, up 6% from the first quarter but down 13% from the same period in 2025. Adjusted EBITDA totalled R$4.71 billion, representing a 3% sequential increase and a 23% year-on-year decline.
The adjusted EBITDA margin stood at 41%, compared with 42% in the previous quarter and 46% a year earlier.
Operating cash generation rose 14% quarter-on-quarter to R$2.89 billion, although it was 30% below the second quarter of 2025. Adjusted free cash flow reached R$3.3 billion.
Net income amounted to R$1.81 billion, down 58% from R$4.31 billion in the first quarter and 64% from R$5.01 billion a year earlier. The decline primarily reflected the reversal in Suzano’s net financial result, which shifted from a R$4.62 billion gain in the first quarter to a R$10 million loss in the second quarter, alongside lower year-on-year revenue and higher production costs.
Pulp prices offset weaker annual volumes
Suzano sold 3.30 million tonnes of pulp and paper during the quarter, a 3% increase from the first quarter but a 10% decrease year-on-year.
Pulp sales reached 2.90 million tonnes, up 2% sequentially but down 11% from the second quarter of 2025, mainly because of lower shipments to Asia. Paper sales increased 7% from the previous quarter to 406,000 tonnes and were broadly stable year-on-year.
The average net pulp price in export markets rose to US$601 per tonne, an increase of 7% from the first quarter and 8% from a year earlier. In Brazilian reais, however, the average net pulp price declined 4% year-on-year as the stronger real offset the improvement in dollar-denominated prices.
The cash cost of pulp production, excluding downtime, was R$843 per tonne, up 1% year-on-year. Cash production costs were affected by higher input, energy and logistics expenses, including indirect cost pressures linked to geopolitical tensions in the Middle East.
Suzano’s oil-related hedge portfolio generated R$147 million in positive cash adjustments during the quarter, partially mitigating the impact of higher energy costs.
“We have delivered a solid second quarter in a volatile market environment,” CEO Beto Abreu said, adding that the company remains focused on operational efficiency, deleveraging and extracting value from investments already completed.
Suzano ended June with net debt of US$12.8 billion, down 2% from the previous quarter. Its net debt-to-adjusted EBITDA ratio nevertheless increased slightly to 3.4 times in US dollars, reflecting lower adjusted EBITDA over the preceding 12 months.
Arbex to be consolidated from the third quarter
After the reporting period, Suzano completed the formation of Arbex, its international tissue joint venture with Kimberly-Clark, after acquiring a 51% stake for US$1.3 billion.
Arbex began operations on July 1, 2026. The company comprises 22 mills across 14 markets and manufactures, markets and distributes consumer and professional tissue products in more than 70 countries.
Arbex’s financial results will be consolidated into Suzano’s accounts beginning in the third quarter of 2026.
The complete figures are available in Suzano’s second-quarter earnings release.
Suzano is a Brazilian multinational and the world’s largest pulp producer, as well as one of Latin America’s largest paper manufacturers. Its portfolio includes market pulp, printing and writing paper, packaging, tissue and other eucalyptus-based products sold in more than 100 countries. Suzano is listed on Brazil’s B3 exchange under SUZB3 and on the New York Stock Exchange under SUZ.
