Suzano S.a Stock Earnings Reports

Key points for investors: Suzano delivered broadly in line Q3 results with several positive operational trends. Paper & Packaging achieved its first quarterly positive EBITDA (BRL 542m) and record quarterly volumes, with continued focus on cost reduction and improving Packaging margins (Pine Bluff turnaround). Pulp posted EBITDA of BRL 4.5 billion (~49% margin) but was affected by lower dollar prices and FX; management highlighted market volatility from the short-lived U.S. tariff scare and subsequent strong Chinese buying that created abnormal order backlogs. Cash costs improved (Q3 ex-downtime BRL 801/t, already running below BRL 800/t in Q4), driven by better wood quality, lower input prices and operational gains. Leverage (net-debt/EBITDA LTM) ticked to 3.3x mainly due to lower EBITDA; net debt stable and company continued active liability management (including a $1bn 10-year bond at historically low spread and buybacks of near-term bonds). Hedging portfolio (~$6bn) provides potential positive cash impact if BRL remains near Q3 levels. CapEx guidance for 2025 reaffirmed at BRL 13.3bn with a declining trend expected into 2026 as major projects complete. Outlook: management is prioritizing cash-cost reduction and deleveraging regardless of price cycles, sees early signs of pulp price recovery driven by higher wood-chip costs in China and supply-side stress globally, but cautions that the current price environment remains unsustainable and dependent on supply adjustments and the timing of new projects. Key risks: continued low pulp prices, FX, trade policy uncertainty, and potential operational downtime.