Suzano Reports Increased Operational Efficiency With Lower Cash Cost in the Third Quarter of 2025

Ongoing improvement in cost competitiveness: cash production costs continue to reduce (down 7% Y-o-Y), due to the increased contribution from the Ribas do Rio Pardo unit. Continued progress in integrating recent acquisitions: Suzano Packaging reported its first positive Adjusted EBITDA from the US operations acquired one year ago.

Suzano, the world’s largest pulp producer, announces its results for the third quarter of 2025 (3Q25), reporting sales of 3.6 million tonnes of pulp and paper combined, a 20% increase on the same quarter last year (3Q24). The positive result is driven by the operations of the Ribas do Rio Pardo pulp mill, inaugurated in 2024, and by the integration of paper production from assets acquired in the United States in October 2024.

The cash cost of pulp production (excluding downtime) was R$801 per tonne, a 7% reduction compared to 3Q24, another positive highlight of the quarter. The results reflect the continuation of the downward trend in production costs and the ongoing improvement in structural competitiveness.

Net revenue for the quarter totalled R$12.2 billion, broadly flat on the comparable period last year. Adjusted EBITDA totalled R$5.2 billion and operating cash generation was positive at R$3.4 billion. The movement is mainly influenced by lower pulp prices and a weaker exchange rate for exports. Net profit totalled R$2 billion.

Suzano Packaging delivered its first positive Adjusted EBITDA from the US operations acquired in October 2024. The result reflects the company's focus on value generation from the integrated asset base.

Suzano’s net leverage in U.S. dollars ended the quarter at 3.3 times in USD. The cash position at the end of Q3 totalled US$6.5bn.

Beto Abreu, CEO of Suzano, commented:

“Even in challenging market conditions, we continued to improve our competitiveness and we remain strongly cash generative, boosted by the exceptional efficiency of our new Ribas do Rio Pardo mill.We remain focused on further strengthening our competitiveness, deleveraging the company and unlocking value from the capital allocations made to date. The solid progress toward establishing the joint venture with Kimberly-Clark, along with the learnings and positive momentum from our packaging operations in the United States, indicate we are on the right path.”

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