Suzano reports Q2 growth and revises annual investment plan

Suzano, the world’s largest market pulp producer, closed the second quarter of 2025 with a net profit of R$5 billion, reversing the net loss of R$3.77 billion recorded in the same period last year. According to the company, the improvement was mainly driven by the appreciation of the Brazilian real against the U.S. dollar, which fell 5% in the quarter, compared with an 11% increase in the same period of 2024. This resulted in a positive net financial result of R$4.42 billion, compared with a loss of R$11.07 billion in Q2 2024.

Foreign exchange and monetary variations boosted the company’s financial result by nearly R$3 billion, while derivative operations contributed an additional R$2.66 billion.

Net revenue rose 16% year-on-year to R$13.3 billion, supported by higher sales volumes, up 28% for pulp and 24% for paper, as well as a 9% increase in the average exchange rate and contributions from the new Suzano Packaging US operation. These factors partially offset a 20% drop in the average pulp price in U.S. dollars.

The company sold 3.27 million tons of pulp in the quarter, up 28% year-on-year, while paper sales reached 235,000 tons, up 24%. Adjusted EBITDA totaled R$6.09 billion, up 25% quarter-on-quarter but down 3% year-on-year, with an EBITDA margin of 46%, nine percentage points lower than in 2024. Operating cash generation fell 8% to R$4.15 billion.

As of June 30, Suzano’s net debt stood at R$70.8 billion (US$13 billion), down from R$74.2 billion (US$12.9 billion) in March. Leverage, measured in U.S. dollars, was at 3.1 times.

INVESTMENT PLAN REVISED

Suzano revised its 2025 investment plan from R$12.4 billion to R$13.3 billion, reflecting the signing of a contract with Eldorado Brasil Celulose involving the exchange of 18 million cubic meters of standing timber in Mato Grosso do Sul, a Brazilian state located in the Central-West region.

Under the agreement, Eldorado will provide mature wood for Suzano to harvest between 2025 and 2027. In return, Suzano will supply immature wood for Eldorado to harvest between 2028 and 2031. The deal also includes a payment of R$1.32 billion from Suzano to Eldorado, with R$878 million to be paid in 2025 and R$439 million in 2026.

 

“Through this transaction, Suzano captures a strategic opportunity to increase the average age of its forest base in the state of Mato Grosso do Sul, enabling greater operational efficiency by reducing wood harvesting costs and specific wood consumption in pulp production; as well as reducing the need for investment in new eucalyptus plantations and wood purchases from third parties,” the company stated in a market release.

Suzano noted that the operation will provide greater flexibility in managing its forest base and may allow future production increases without the need for new investments.

PULP PRODUCTION BELOW CAPACITY

The company also announced that market pulp production over the next 12 months will be about 3.5% below its nominal capacity.

“This decision is based on the fact that such a production volume would not provide an adequate return for the company at a time when the pulp market is more challenging,” Suzano said.