Suzano S.A. reported its third‑quarter 2025 results, delivering sales of 3.6 million tonnes—an increase of 20% year‑over‑year—while net revenue reached R$12.15 billion, slightly down 1% from the same period in 2024 but above the consensus estimate of R$12.03 billion.
Adjusted EBITDA for the quarter was R$5.20 billion, a 20% decline from R$6.50 billion in Q3 2024, which lowered the adjusted EBITDA margin to 43% from 53% a year earlier. Net profit fell to R$1.96 billion, a 39% drop from R$3.20 billion in Q3 2024, and EPS of $0.29 beat the consensus of $0.26 by $0.03.
Cash cost ex‑downtimes dropped 7% to R$801 per tonne, driven largely by the operational efficiency of the Ribas do Rio Pardo mill. The mill’s improved throughput and lower energy consumption helped offset the impact of lower pulp prices on overall cost structure.
Suzano Packaging’s U.S. assets posted their first positive adjusted EBITDA of R$43 million in Q3 2025, a turnaround from a negative R$66 million in the prior quarter, and contributed to the company’s strong cash generation profile.
Net leverage in U.S. dollars was 3.3×, and the cash position topped US$6.5 billion, reinforcing the company’s deleveraging trajectory and liquidity strength.
Segment‑level analysis shows adjusted EBITDA per tonne for pulp at R$1,410 (down 35% YoY) and for paper at R$1,694 (down 26% YoY), reflecting the broader decline in pulp prices and the mix shift toward higher‑margin paper products.
CEO Beto Abreu highlighted that, even in a challenging market, Suzano’s competitiveness is bolstered by the exceptional efficiency of the new Ribas mill and the cash‑generating performance of its U.S. packaging assets. He emphasized a continued focus on cost discipline, deleveraging, and unlocking value from capital allocations.
Investors reacted to the sharp decline in profitability, which was largely attributed to falling global pulp prices. While revenue and EPS beat expectations, margin compression and the 39% drop in net profit tempered enthusiasm, underscoring the sensitivity of Suzano’s earnings to commodity price cycles.
The company did not provide new guidance for the remainder of the year, but management’s comments suggest confidence in maintaining profitability through cost discipline and downstream expansion, while acknowledging the ongoing headwinds from lower pulp prices.
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