Suzano (SUZ) Company Report

Suzano is shifting its strategy to focus on competitiveness and extracting value from recent investments, targeting a net debt per EBITDA of 2.5 times. The Cerrado Project exceeded its nominal design capacity, producing 2.57 million tons in 2025 and is projected to reach 2.7 million tons by 2027 without new CapEx.
The joint venture with Kimberly-Clark, with $3.3 billion in net sales and $500 million in EBITDA, is anticipated to close by mid-2026 and is expected to generate $175 million in operational gains.
The global pulp market is currently unsustainable, with 14.5 to 15 million tons of production operating at a loss as of December 11, 2025. Despite this, Suzano projects organic hardwood pulp demand growth of 4.5 million tons by 2029, alongside 6 million tons of new hardwood pulp projects in China from 2025-2029.
Financially, Suzano issued $4 billion in new debt in 2025 at a 5% cost, has secured liquidity for the Kimberly-Clark transaction, and maintains a minimum dividend policy of BRL 1.4 billion.

8 days ago

Transcript

Suzano Outlines Strategic Shift and Financial Targets at Investor Day 2025

SUZ

Guidance Update

New Projects/Investments

Demand Weakening

Suzano is shifting its strategic focus from new capital allocation projects to enhancing competitiveness and extracting value from existing investments, such as the Cerrado Project and the upcoming Kimberly-Clark transaction.
The company has set a new net debt target of $11 billion and aims for a net debt per EBITDA ratio of 2.5 times, supported by operational cost reductions, CapEx discipline, and a minimum dividend policy of BRL 1.4 billion.
The global pulp market is currently described as "unsustainable," with 15 million tons of production losing money as of December 11, 2025, due to a demand-to-capacity ratio below optimum, despite a forecasted 3.1 million tons growth in hardwood pulp demand by 2029.
Operational improvements include the use of digital twins in paper and digester operations, projected to save BRL 80 million to BRL 150 million in 2026, and forestry initiatives like the Eldorado wood swap, which is expected to yield a 20% return.

8 days ago

Transcript

Suzano Updates Strategy, Market Outlook, and Financial Targets at Investor Day 2025

SUZ

Guidance Update

New Projects/Investments

M&A

Suzano is shifting its strategy to focus on competitiveness and extracting value from existing projects, aiming for a 2.5 times net debt per EBITDA target.
The hardwood pulp market faces an unsustainable supply-demand imbalance, with 6 million tons of confirmed new capacity in China (2025-2029) against 3.1 million tons of demand growth (until 2029), leading to 15 million tons of pulp production losing money globally.
The Cerrado project exceeded its nominal design capacity, producing 2.57 million tons in 2025, and is expected to reach 2.7 million tons by 2027 without additional CapEx.
Suzano announced a deleveraging plan with a new $11 billion net debt target and a BRL 1.4 billion minimum dividend policy.
The Kimberly Clark JV, announced in June, involves $3.3 billion in net sales and $500 million in EBITDA, with Suzano holding a 51% stake, and is expected to close by mid-2026.

8 days ago

Transcript

Suzano Outlines Strategic Shift to Competitiveness and Value Extraction at Investor Day 2025

SUZ

Guidance Update

New Projects/Investments

M&A

Suzano is shifting its strategy to prioritize competitiveness and extracting value from existing projects, with growth coming from current investments rather than new M&A, and aims for a net debt target of $11 billion throughout the cycle.
The Cerrado Project exceeded its nominal design capacity, producing 2.57 million tons in 2025, with an expectation to reach 2.7 million tons by 2027 without additional CapEx.
The Kimberly-Clark (KC) joint venture, valued at $3.3 billion net sales and $500 million EBITDA, is expected to close by mid-2026. Additionally, the Pine Bluff U.S. paperboard operation achieved positive EBITDA in Q3 2025 and targets a 21% cash cost reduction.
Suzano forecasts a solid 4.5 million tons growth in hardwood pulp demand until 2029, but notes that 6 million tons of new hardwood pulp capacity from verticalization projects in China are expected between 2025 and 2029, potentially impacting the addressable market.
The company projects a total operational disbursement of BRL 1,983 per ton in 2027, reflecting its focus on cost reduction and competitiveness.

8 days ago

Transcript

Suzano S.A. outlines strategic priorities, operational achievements, and market outlook at Investor Day 2025

SUZ

Guidance Update

New Projects/Investments

M&A

Suzano S.A. is focused on deleveraging towards a Net Debt/Adjusted EBITDA target of less than 2.5x.
The Ribas do Rio Pardo mill achieved an actual production of 2.3 Mt, exceeding the expected 2.0 Mt at start-up, with its capacity updated to 2,570 KT in 2025e and ~2,700 KT from 2027e onwards.
The company projects +4.5 Mt of BHKP organic growth from 2024-2029e, but notes potential market oversupply with 6.0 Mt of new confirmed BHKP integrated capacity in the same period.
Suzano formed a joint venture with K-C, expected to make it the 8th largest global tissue player with pro forma net revenues of ~US$3.3 billion and pro forma adjusted EBITDA of ~US$0.5 billion, with closing anticipated by mid-2026.
The company has identified US$175 million in value creation from the K-C joint venture and expects R$80 million to R$115 million in total cost reduction in its Paper & Packaging Business Unit in Brazil for 2026.

8 days ago

6-K

Suzano Updates Long-Term Pulp Operational Expenditure Estimates

SUZ

Guidance Update

New Projects/Investments

Suzano S.A. has updated its long-term operational expenditure estimates for its pulp business, projecting a total operational expenditure of R$1,983 per tonne for 2027.
This updated estimate for 2027 comprises a pulp production cash cost of R$787 per tonne, logistics, selling, and administrative costs of R$677 per tonne, and maintenance capex of R$520 per tonne.
The estimates incorporate the operation of the Ribas do Rio Pardo unit with an increased capacity of approximately 2.7 million tonnes per year.
The update considers factors such as inflation adjustments for 2025 and 2026, exchange rate variations, and management initiatives for structural competitiveness.

8 days ago

6-K

Suzano S.A. Board Approves Interim Dividend Distribution

SUZ

Dividends

Suzano S.A.'s Board of Directors approved the distribution of interim dividends totaling BRL 1,380,000,000.00, or BRL 1.11658725 per share, based on retained earnings as of September 30, 2025.
The payment date for these interim dividends is February 4, 2026, with shares trading ex-dividends as of December 19, 2025, and the record date in Brazil set for December 18, 2025.
These interim dividends will be allocated towards the minimum mandatory dividend for the fiscal year ending December 31, 2025.

Dec 11, 2025, 2:31 AM

6-K

Suzano S.A. announces interim dividend distribution

SUZ

Dividends

Suzano S.A.'s Board of Directors approved the distribution of interim dividends totaling BRL 1,380,000,000.00.
Shareholders will receive BRL 1.11658725 per share, based on retained earnings as of September 30, 2025.
The payment date for these dividends is February 4, 2026, with shares trading ex-dividend as of December 19, 2025.
These dividends are exempt from Income Tax and will be allocated to the minimum mandatory dividend for the fiscal year ending December 31, 2025.

Dec 11, 2025, 2:07 AM

6-K

Suzano S.A. Updates Capital Expenditure Estimates for 2025 and 2026

SUZ

Guidance Update

New Projects/Investments

Suzano S.A. maintains its capital expenditures (CAPEX) estimate for fiscal year 2025 at R$13.3 billion.
The company's Board of Directors approved a CAPEX estimate of R$10.9 billion for fiscal year 2026.
The 2026 CAPEX includes R$7.3 billion for Maintenance, R$0.8 billion for Expansion, Modernization and Other, R$2.6 billion for Land and Forests, and R$0.2 billion for the Cerrado Project.
The R$2.4 billion reduction in total CAPEX from 2025 to 2026 is primarily due to reduced forestry maintenance expenses, lower investment intensity in expansion projects, and decreased expenditure from a standing-wood swap transaction.

Dec 9, 2025, 11:49 PM

6-K

Suzano Reports Q3 2025 Results and Provides Outlook

SUZ

Earnings

Guidance Update

Debt Issuance

Suzano reported a 7% decrease in cash cost compared to Q3 2024 and anticipates running below BRL 800 per ton ex-downtime in Q4 2024-2025, with a full-year average expected near this level.
Leverage in dollar terms increased to 3.3 times due to lower pulp prices, despite stable net debt. The company issued $1 billion in new 10-year bonds and repurchased short-term bonds, extending the average debt term from 74 to 80 months at a stable 5% cost.
The CAPEX guidance for 2025 is BRL 13.3 billion, with BRL 2.9 billion allocated for Q4 2025, and a declining CAPEX trend is expected for 2026.
Management described the current pulp market as "completely unsustainable" for producers, noting slightly increased optimism for price hikes due to rising wood chip costs for Chinese producers, which could impact their cash cost by $50-$80 per ton.
The company's strategic focus remains on reducing cash costs and extracting value from current investments, with no immediate plans for new inorganic alternatives or exercising the option for an additional stake in Lenzing.