Suzano S.A. - First Quarter 2026 Results

Suzano S.A. reported its First Quarter 2026 results, highlighting a resilient business model that mitigates current risks, including those associated with the Middle East conflict. The company experienced solid operational performance and higher pulp prices, which were offset by a stronger Brazilian Real (BRL). Key financial and operational metrics for 1Q26 include Adjusted EBITDA of R$4.6 billion, Operating Cash Generation of R$2.5 billion, and a cash cost ex-downtimes of R$802/ton for pulp. The company maintained a strong liquidity position with US$13.0 billion and a net debt of US$6.1 billion, resulting in a leverage ratio of 3.3x in US$. The Paper and Packaging business saw stable volumes year-over-year in Brazilian operations, with cost improvements helping to mitigate FX and export price headwinds. However, US operations faced slower demand. The Pulp business reported higher volumes year-over-year and an increase in pulp prices, with production volume fully sold. Suzano is focused on strengthening its balance sheet and competitiveness, supported by its FX and Brent hedging portfolio. The company anticipates the joint venture with K-C to close in 3Q26 as planned. The Paper & Packaging business is expected to benefit from higher prices and volumes in Brazilian operations.