By Brazil Stock Guide – Suzano (B3: SUZB3 | NYSE: SUZ) posted a net profit of R$116 million ($23 million) in the fourth quarter of 2025, returning to the black after a R$6.7 billion loss a year earlier, as record sales volumes and lower cash costs offset weaker pulp prices and adverse currency effects. Adjusted EBITDA reached R$5.6 billion ($1.1 billion), up 7% from the previous quarter but down 14% year on year.
Higher shipments drove the recovery. Pulp sales reached 3.4 million metric tons (3.7 million short tons), up 4% from the same quarter of 2024, while paper volumes rose 10% to 474,000 tons. Net revenue totaled R$13.1 billion ($2.6 billion), an 8% increase quarter on quarter, supported by volumes and slightly higher pulp prices in dollar terms. On an annual basis, revenue fell 8%, reflecting lower average pulp prices and an 8% depreciation of the U.S. dollar against the real.
Cost discipline remained the key operational lever. Suzano said in its earnings report that pulp cash production costs excluding maintenance stoppages fell to R$778 per ton ($155), the lowest nominal level since late 2021, driven by operational stability, lower input consumption and efficiency gains at the Ribas do Rio Pardo mill.
The margin picture, however, stayed tight. Adjusted EBITDA per ton declined 19% year on year to R$1,409 ($281), while consolidated EBITDA margins slipped to 43%, from 46% a year earlier. Currency effects and softer realized pulp prices continued to erode profitability despite operational gains.
Balance-sheet metrics showed limited improvement. Net debt ended the quarter at US$12.6 billion, down 3% from the third quarter, keeping leverage at 3.2 times EBITDA. Operating cash flow reached R$3.7 billion ($740 million) in the quarter, while full-year free cash flow yield stood at 16.7%.
What changes and what doesn’t
The quarter marks a financial inflection from loss to profit, but not a full earnings recovery. Cost leadership and scale continue to favor Suzano, while pricing power remains constrained by global pulp cycles and currency volatility. Into 2026, performance will depend less on volume growth and more on sustained pulp price normalization and exchange-rate stability.
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