By Brazil Stock Guide – Suzano S.A. (B3: SUZB3 | NYSE: SUZ) reported a net profit of R$1.96 billion in the third quarter of 2025, down 39% year over year and 61% from the previous quarter, as a 22% fall in average pulp prices weighed on margins. The company offset part of the impact with record sales volumes, efficiency gains, and disciplined cost control.
Pulp prices drag earnings despite record sales
Suzano sold 3.17 million tons of pulp, up 20% from 3Q24, and 436,000 tons of paper, a 21% increase boosted by the integration of Suzano Packaging US. However, the average net pulp price dropped to US$525 per ton, reflecting weaker demand in Asia and Europe and a softer U.S. dollar. Even with a mild recovery in September, following the removal of U.S. tariff uncertainties, prices remained well below 2024 levels.
The company’s adjusted EBITDA fell 20% year over year to R$5.2 billion, with the EBITDA margin narrowing to 43%. On the operational side, Suzano maintained strong efficiency metrics: the cash cost of pulp production declined 7% year over year to R$801 per ton, driven by lower wood, chemical, and energy costs, and improved logistics and harvesting performance.
Strategic projects and disciplined capex
Capital expenditures totaled R$3.66 billion, up 15% from 2Q25, mainly due to the first R$878 million payment tied to the asset swap with Eldorado Brasil for standing timber in Mato Grosso do Sul. Investments focused on the new tissue plant in Aracruz (Espírito Santo), the competitiveness program at the Limeira mill, and fluff pulp capacity expansion. Outlays for land, forests, and the large-scale Cerrado Project were lower, consistent with the company’s capital discipline and revised project schedules.
Financial structure and liquidity
Gross debt stood at R$93 billion, with 96% due in the long term and 74% denominated in foreign currency. The net debt fell 2% to R$69 billion, keeping leverage at 3.3x EBITDA in U.S. dollars. Suzano also extended its average debt maturity to 80 months while maintaining its cost at 5% per year.
Around 40% of total debt is linked to ESG instruments, and the company continues to benefit from a natural hedge between its export revenues and dollar-denominated liabilities. Cash and equivalents totaled R$23.9 billion, reinforced by a R$6.8 billion standby credit facility.
Market perception and credit profile
Suzano’s bonds advanced in the secondary market, with yields tightening across its 2031–2047 maturities. The company remains investment grade with positive outlooks from all three agencies — Fitch (BBB-), S&P (BBB-), and Moody’s (Baa3) — reflecting confidence in its deleveraging path and robust cash generation.
Cash generation and outlook
Operating cash flow reached R$3.4 billion, down 18% from the previous quarter, while the free cash flow yield over the last 12 months hit 18.1%. Management reiterated focus on efficiency, disciplined capital allocation, and integration of U.S. operations. Suzano expects a gradual recovery in global pulp prices, led by stronger demand in China and North America, though executives remain cautious about FX volatility and European demand softness.
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