Suzano Reports Sharp Q1 EBITDA & Free Cash Flow Declines Amid Stronger BRL and Seasonal Weakness
SUZ is trading near its 52-week low of $8.66 (2.9% above the low).
Summary
Suzano S.A. reported a significant decline in Q1 2026 Adjusted EBITDA and a sharp drop in Adjusted Free Cash Flow, despite higher pulp prices, leading to increased leverage.
Key Events · Earnings and Guidance · SUZ
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Adjusted EBITDA Declined
Consolidated Adjusted EBITDA decreased 18% quarter-over-quarter and 6% year-over-year, totaling R$4.6 billion.
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Free Cash Flow Plummeted
Adjusted Free Cash Flow saw a significant reduction of 83% quarter-over-quarter and 77% year-over-year, reaching R$586 million.
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Leverage Increased Slightly
Net debt to Adjusted EBITDA (US$) increased to 3.3x from 3.2x in the previous quarter.
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Mixed Sales and Pricing Performance
Pulp sales volume increased 7% year-over-year but decreased 17% quarter-over-quarter due to seasonality, with average net pulp prices in the export market rising 1% year-over-year. Paper sales volume and average net prices declined year-over-year.
Analysis · SUZ · Manufacturing
Suzano S.A.'s Q1 2026 results reveal a challenging operational environment, with consolidated Adjusted EBITDA declining 18% quarter-over-quarter and 6% year-over-year. The most significant concern is the drastic 83% quarter-over-quarter and 77% year-over-year reduction in Adjusted Free Cash Flow, signaling considerable pressure on liquidity and operational efficiency. While pulp prices showed some resilience, the overall performance was negatively impacted by lower sales volumes due to seasonality and a stronger Brazilian Real. The slight increase in leverage, coupled with the stock trading near its 52-week low, could further pressure investor sentiment. Investors should closely monitor future cash flow generation and the company's ability to manage its debt in a volatile currency environment.
At the time of this filing, SUZ was trading at $8.91 on NYSE in the Manufacturing sector, with a market capitalization of approximately $11.4B. The 52-week trading range was $8.66 to $11.54. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.