Suzano Q2 Earnings Call Highlights

Suzano NYSE: SUZ reported second-quarter 2026 results marked by stronger free cash flow, higher pulp prices and improved paper sales volumes, while geopolitical volatility, inflation in oil-linked inputs and maintenance-related disruptions weighed on costs and operations.

Chief Executive Officer Beto Abreu said the company continued to demonstrate business resilience despite volatile geopolitical conditions.

He also said the Arbex transaction closed on July 1, with governance and the management team fully established.

Suzano is now focused on integrating the business, capturing efficiency gains and reducing total operational disbursement while deleveraging.

Abreu also announced that Aires Galhardo, executive vice president of pulp industrial operations, engineering and energy, was participating in his final earnings call.

Carlos Aníbal will become the company’s Industrial and Engineering Executive Vice President.

Fabio Almeida de Oliveira, Suzano’s executive vice president of paper and packaging, said the segment’s second-quarter performance benefited sequentially from higher volumes and prices and lower selling, general and administrative expenses.

Those gains were partly offset by inflation in wood, oil-related products and logistics, as well as a longer-than-expected ramp-up after the annual maintenance outage at the Pine Bluff mill.

In Brazil, print-and-writing paper demand remained stable from a year earlier and rose 4% from the first quarter, according to industry group Ibá.

Oliveira said the sequential increase reflected seasonality and demand for coated papers ahead of Brazil’s elections.

Suzano’s domestic print-and-writing volumes rose 4% year over year and 10% sequentially.

Brazilian paperboard demand increased 8% from a year earlier and 11% from the first quarter.

The company said some customers built inventories before anticipated paperboard price increases.

Suzano’s domestic paperboard volumes rose 11% year over year and 28% sequentially.

In export markets, print-and-writing demand fell 4% year over year in the U.S. and Europe, while Latin American demand was stable amid increased participation by Asian suppliers.

U.S. solid bleached sulfate shipments rose 11% year over year, though operating rates were around 82%.

Oliveira said that after adjusting for recent capacity reductions and supply interruptions, the operating rate would rise to 90%, which could support better market conditions in the second half.

Suzano Packaging’s EBITDA was affected by a scheduled May maintenance outage, operational instability after the outage and higher resin and logistics costs tied to the Middle East conflict.

Oliveira said the company began the third quarter with a strong U.S. order book and expects contractual pricing adjustments to begin offsetting prior cost increases.

He also cited supply disruptions at a competitor’s mill as a factor supporting the outlook.

Leo Grimaldi, executive vice president of global pulp sales, marketing and logistics, said pulp demand in Europe and North America exceeded expectations during the quarter, supported by stronger paper production, inventory replenishment and customers seeking to get ahead of expected cost increases.

Pulp prices increased month over month in those regions.

China presented a more difficult backdrop.

A narrow softwood-hardwood price spread and high softwood inventories at Chinese ports curtailed purchasing activity, leading to hardwood pulp price concessions near the end of the quarter.

Suzano’s pulp sales totaled 2.9 million tons, below the year-earlier level but slightly above the first quarter, as production was ...