Suzano reported net revenue of R$16.5 billion in the third quarter of 2026, up 36% year on year, following the consolidation of Arbex, its joint venture with Kimberly-Clark. Adjusted EBITDA increased 9% to R$5.7 billion, while pulp sales totaled 3.19 million tonnes.
The results, published on November 5, include Arbex's contribution for the first time following the completion of the joint venture on July 1, 2026. Suzano holds a 51% equity interest in Arbex and consolidates 100% of its financial statements. (1)
Operating cash generation reached R$3.8 billion, an increase of 12% compared with the third quarter of 2025, while net income rose 6% to R$2.1 billion. Adjusted EBITDA margin, however, declined to 34%, compared with 43% in the same period last year.
“This quarter marks the beginning of a new phase for Suzano. With Arbex, we are now a broader business, both geographically and across our product portfolio. This balance, combined with our continued focus on competitiveness, further strengthens Suzano and reinforces our long-term positioning. Our priority remains to execute our strategy with discipline and turn the opportunities ahead into sustainable value for our stakeholders,” said Beto Abreu, CEO of Suzano.
Pulp business
Suzano sold 3.19 million tonnes of pulp during the quarter, down 1% year on year but up 8% compared with the second quarter of 2026. Pulp revenue reached R$9.64 billion, an increase of 4% compared with the same period last year.
The average net pulp price was US$588 per tonne, up 12% year on year, while the average net price in the export market reached US$591 per tonne, an increase of 13%.
Adjusted EBITDA from the pulp segment totaled R$4.81 billion, up 5% year on year. Adjusted EBITDA per tonne increased 6% to R$1,506.
Pulp production cash cost, excluding maintenance and administrative downtime, was R$825 per tonne, up 3% compared with the third quarter of 2025, but down 2% from the previous quarter. Suzano attributed the year-on-year increase mainly to higher input prices, particularly chlorine dioxide, natural gas and sulfuric acid, as well as higher wood costs, harvesting expenses, logistics and diesel costs.
Suzano reported a gradual improvement in the Chinese hardwood pulp market during the quarter. Higher imported wood prices increased domestic fiber production costs, encouraging integrated producers to purchase market hardwood pulp. This, together with the delayed start-up of a major Asian hardwood project and declining inventories at Chinese ports, supported sales volumes and pulp price increase announcements from late August.
Consumer Goods
The Consumer Goods business unit, which now includes Arbex alongside Suzano's tissue operations in Brazil, recorded net revenue of R$5.02 billion. International markets accounted for R$4.22 billion of this amount.
Sales totaled 299,000 tonnes, compared with 64,000 tonnes in the third quarter of 2025. Adjusted EBITDA reached R$803 million, including R$694 million from Arbex, while operating cash generation totaled R$609 million.(2)
International markets accounted for 227,000 tonnes, or 76% of the segment's total sales volume, with the Brazilian market representing the remaining 71,000 tonnes.
Paper and Packaging
Sales in the Paper and Packaging segment totaled 374,000 tonnes, broadly stable compared with the third quarter of 2025. Net revenue reached R$2.47 billion, up 4% year on year.
Adjusted EBITDA totaled R$277 million, down 48% compared with the same period last year. Adjusted EBITDA per tonne was R$740, also down 48%. Suzano attributed the decline primarily to higher production costs at its US packaging operations.
Debt and leverage
Suzano's net debt reached US$14.7 billion at the end of September, an increase of 15% compared with the previous quarter. The increase reflected the US$1.3 billion payment for the acquisition of the 51% stake in Arbex and the consolidation of approximately US$900 million in the joint venture's existing net debt.
Net leverage in US dollars stood at 3.7 times. However, including Arbex's pro forma adjusted EBITDA for the preceding 12 months, the ratio would have been 3.4 times.
Suzano said its leverage metrics will fully reflect the joint venture's results only by the end of the second quarter of 2027, as the calculation progressively incorporates Arbex's cumulative adjusted EBITDA.
(1) The 49% interest held by Kimberly-Clark will be reflected in Suzano’s results as non-controlling interests, as applicable.
(2) Suzano is additionally announcing a new reporting structure and disclosure framework following the consolidation of Arbex. Suzano will expand its disclosure from its two existing business units; Pulp, and Paper and Packaging, into three divisions namely Pulp, Consumer Goods, and Paper and Packaging. The new Consumer Goods unit manufactures products such as toilet paper, napkins, and reusable cloths which were previously included in the Paper and Packaging unit and will also include Arbex’s contribution. The Paper and Packaging business unit now reports only the results of the paperboard, printing, writing paper, and specialty paper businesses which include papers used to manufacture cups and straws.
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