Suzano 2Q26: EBITDA Falls 23% YoY, Leverage Rises to 3.4x, Kimberly-Clark JV Closes
SUZ is trading near its 52-week low of $7.555 (6.7% above the low) on elevated volume (1.8× avg).
Summary
Suzano reported 2Q26 Adjusted EBITDA of R$4.7 billion, down 23% YoY, with net income down 64% to R$1.8 billion. Leverage rose to 3.4x, but free cash flow improved to R$3.3 billion. The company also confirmed completion of its US$1.3 billion Kimberly-Clark JV acquisition.
Key Events · Earnings and Guidance · SUZ
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2Q26 Adjusted EBITDA Falls 23% YoY
Adjusted EBITDA was R$4.7 billion, down 23% from R$6.1 billion in 2Q25, driven by FX depreciation, lower pulp sales volumes, and higher cash costs.
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Net Income Down 64% YoY
Net income was R$1,807 million, down from R$5,012 million in 2Q25, primarily due to a lower financial result and higher COGS.
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Leverage Rises to 3.4x
US$ net debt/Adjusted EBITDA increased to 3.4x from 3.1x a year ago, reflecting lower trailing EBITDA. Net debt was US$12.8 billion.
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Adjusted Free Cash Flow Improves
Adjusted Free Cash Flow was R$3.3 billion, up 27% YoY, driven by working capital release and positive derivative cash settlements.
Analysis · SUZ · Manufacturing
Suzano's second-quarter results show a sharp year-over-year decline in profitability, with Adjusted EBITDA down 23% to R$4.7 billion and net income down 64% to R$1.8 billion. The company's US$ leverage ratio climbed to 3.4x from 3.1x a year ago, reflecting weaker trailing EBITDA. However, Adjusted Free Cash Flow improved 27% YoY to R$3.3 billion, and the company completed its US$1.3 billion acquisition of a 51% stake in the Kimberly-Clark tissue joint venture on July 1, 2026. The earnings release also confirms the company's guidance for 2026 pulp cash cost at approximately R$800/t and net debt/leverage targets of US$11.0 billion and below 2.5x for 2027-2028.
At the time of this filing, SUZ was trading at $8.06 on NYSE in the Manufacturing sector, with a market capitalization of approximately $10B. The 52-week trading range was $7.56 to $11.54. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.