Suzano S.A. Q4 FY2025 earnings call

• Pulp: Strong shipment in pulp, price recovery in markets due to higher demand in China, order intake above expectations, and impact of Indonesian forestry license revocations affecting supply. - Paper and Packaging: Strong volumes in Brazil and US, maintenance downtimes at mills, closure of Rio Verde mill. - Financials: Strong operational cash flow and free cash flow in Q4, net debt reduced to $12.6 billion by end of 2025, dividend payments and buyback programs executed.

Pulp Business: Fourth quarter saw record pulp volumes, with price recovery in markets mainly due to higher demand in China and Asia. Order intake was above expectations, and EBITDA in Q4 was BRL 4.8 billion, up 8% quarter-over-quarter. Cash cost in Q4 was BRL 778 per tonne, the best since 2021. Paper and Packaging Business: Paper and packaging units had strong volumes in Q4. The Paper and Packaging business unit delivered strong volumes in Brazil and US. EBITDA was up 10% driven by the turnaround of Suzano Packaging. The Rio Verde mill was closed, expected to have a positive impact on 2026 results.

• Pulp: Expect average cash production cost in 2026 to be broadly in line with Q4 2025. Q1 and Q2 2026 will have planned maintenance downtime, constraining volumes. - Paper and Packaging: Sales volumes lower in Q1 2026 due to seasonality, price improvements expected, cost improvements in Brazilian operations. - Financial: Expect to continue deleveraging, JV with K-C progressing as planned with closing in mid-2026.

• Indonesian forestry license revocations impacting pulp supply and increasing wood chip prices. - Market oversupply and price pressures in packaging markets. - Seasonal maintenance downtimes affecting costs in the short term.

Q: Dig deeper on China pulp demand and CapEx trends?

A: Leo discussed China paper demand and upstream verticalization, Marcos commented on CapEx nonrecurring items.

Q: Buyback execution and divestments?

A: Marcos talked about focus on deleveraging, opportunistic buybacks, and divestment potential in non-core forestry assets.

Q: Pulp paper price relationship and US Packaging market?

A: Leo discussed pulp-paper price correlation, Fabio talked about US Packaging market insulation and progress.

Q: Cost improvement and order intake?

A: Aires discussed cost improvement targets, Leo commented on order intake trends and wood cost impacts.

Q: Pulp market tone change and Paper division 2026 highlights?

A: Leo discussed Indonesian license revocations as tone changer, João talked about Paper division 2026 highlights including K-C JV and asset value extraction.