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Suzano Posts Strong 2Q26 Cash Generation Despite Higher Costs and Rising Leverage

Suzano Posts Strong 2Q26 Cash Generation Despite Higher Costs and Rising Leverage
Story Highlights
  • Suzano’s 2Q26 results showed strong EBITDA and free cash flow, supported by higher pulp prices and Brazilian paper volumes.
  • Rising input costs and higher net debt weighed on margins, but hedging, guidance and segment disclosure plans underscored disciplined financial management.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

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Suzano Papel e Celulose SA ( (SUZ) ) has provided an announcement.

On August 13, 2026, Suzano reported its second-quarter 2026 results, highlighting consolidated adjusted EBITDA of R$4.7 billion and adjusted free cash flow of R$3.3 billion, driven by higher pulp prices and increased pulp and Brazilian paper volumes. The company maintained strong liquidity of US$12.8 billion but saw net debt rise to US$6.9 billion, with leverage at 3.4x in U.S. dollars as investments and lower LTM EBITDA offset robust cash generation.

In the pulp business, EBITDA grew quarter-on-quarter mainly on price gains, while sales volumes were constrained by lower production and inventory rebuilding, and cash cost ex-downtimes increased to R$843 per ton amid conflict-related input cost pressures. The paper and packaging division reported higher volumes and pricing in Brazil, while U.S. operations were temporarily impacted by scheduled maintenance and oil-linked inputs, and Suzano emphasized its commodity and FX hedging portfolio and reiterated 2026 cash-cost guidance and a plan to separately disclose its Consumer Goods segment from the third quarter onward.

The most recent analyst rating on (SUZ) stock is a Hold
with a $11.00 price target.
To see the full list of analyst forecasts on Suzano Papel e Celulose SA stock,
see the SUZ Stock Forecast page.

Spark’s Take on SUZ Stock

According to Spark, TipRanks’ AI Analyst, SUZ is a Neutral.

The score is driven by strong valuation (very low P/E and a moderate dividend yield) and decent underlying profitability/cash generation, offset by elevated leverage and volatility in financial results. Technicals are weak (below major moving averages with negative MACD and low RSI), which reduces the overall score.

To see Spark’s full report on SUZ stock,
click here.

More about Suzano Papel e Celulose SA

Suzano S.A. is a Brazilian pulp, paper and packaging producer with global export operations, focusing on hardwood pulp and paper-based packaging solutions. The company operates integrated industrial and forestry assets and is a major player in the international pulp market, with growing activities in both Brazilian and U.S. paper and packaging segments.

Average Trading Volume: 3,079,577

Technical Sentiment Signal: Sell

Current Market Cap: $9.73B

See more insights into SUZ stock on TipRanks’ Stock Analysis page.

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