BRAZIL · BUSINESS
Key Facts
- The company Suzano, a Brazilian pulp and tissue maker, trades in São Paulo and New York.
- The profit Net income rose 6% to about US$379 million in the three months to 30 September 2026.
- The sales Revenue jumped 36% to about US$3.0 billion after Suzano took over a tissue venture.
- The debt Net debt reached US$14.7 billion, which is 3.7 times the company’s yearly adjusted earnings.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 74.2 points (November 2026 edition).
Suzano, one of the world’s biggest makers of pulp, the wood fibre used for paper, tissue and packaging, earned about US$379 million (R$2.08 billion) in the third quarter of 2026. The company published its results on Thursday 5 November 2026, and net income was 6% higher than a year earlier.
For US readers, Suzano matters because its shares trade in New York as SUZ and because it runs two packaging mills in the United States. Its pulp prices also feed into what American companies pay for paper goods, as our earlier look at Suzano pulp prices in the Americas explains.
What Happened
Suzano’s net revenue was R$16.5 billion (about US$3.0 billion) in the quarter, up 36% from a year earlier and 42% from the second quarter. The jump came mostly from Arbex, a tissue joint venture with Kimberly-Clark, the US maker of Kleenex, which Suzano took over on 1 July 2026.
Adjusted EBITDA, a standard measure of operating earnings before interest, tax and depreciation, rose 9% to R$5.7 billion (about US$1.03 billion). The margin on that measure fell to 34% from 43% a year earlier, because revenue grew much faster than earnings.
What Drove the Quarter
Pulp is still the core, with sales of 3.19 million tonnes, 1% less than a year earlier. The average export price rose 13% to US$591 a tonne, while production cost before planned stoppages was R$825 a tonne (about US$150), up 3%.
The company says the Chinese market for hardwood pulp, made from eucalyptus, improved gradually during the quarter. Chinese ports held less stock, and price increases were announced from late August.
Tissue sales jumped 369% to 299,000 tonnes because Arbex now counts in full, since Suzano consolidates 100% of its accounts. Arbex added R$694 million (about US$126 million) of adjusted EBITDA.
Paper and packaging was the weak spot, with adjusted EBITDA per tonne down 48% to R$740 (about US$134). Suzano blamed operating difficulties at its Pine Bluff packaging mill in Arkansas and higher logistics costs.
The deal itself is covered in our report on Suzano closing the Arbex tissue venture. The company paid US$1.3 billion for it and took on about US$0.9 billion of the venture’s existing debt.
Live Company IntelligenceSuzano Papel e Celulose SA ADR — the full investor dossier
The Debt Picture
Net debt in US dollars was US$14.7 billion at 30 September 2026, up 15% from the previous quarter, mainly because of the Arbex purchase. Leverage, meaning debt divided by twelve months of adjusted earnings, rose to 3.7 times from 3.3 times a year earlier.
Suzano says the figure falls to 3.4 times if Arbex’s full-year earnings are counted. It expects net debt to close 2026 below US$14.0 billion, assuming the real ends the year at R$5.40 per dollar.
What It Means for You
If you hold Suzano’s New York shares, the quarter shows steady profit but a heavier debt load and thinner margins. The Brazilian real, which traded near R$5.51 per US dollar on 5 November 2026, matters because pulp is priced in dollars while many of Suzano’s costs are in reais.
For US companies that buy pulp or tissue, the 13% rise in the export price is the number to watch. A weaker real lowers Suzano’s costs measured in dollars, while stronger Chinese demand can keep prices firm.
What Is Not Known
It is not yet clear how fast Suzano can fix its Pine Bluff packaging mill or how quickly Arbex will lift its margins. The company’s own leverage target of below 2.5 times excludes Arbex and is expected to be met over 2027 and 2028, so the path with Arbex is unclear.
The release also does not say whether the price increases announced for Chinese buyers will stick. Pulp prices have moved on China’s stock levels, which can change within weeks.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
How Much Did Suzano Earn in the Third Quarter of 2026?
Suzano reported net income of R$2.08 billion (about US$379 million at R$5.51 per US dollar), up 6% from a year earlier. Revenue was R$16.5 billion (about US$3.0 billion).
What Is Arbex and Why Does It Matter?
Arbex is a tissue joint venture between Suzano, which owns 51%, and US consumer-goods group Kimberly-Clark. Suzano took control on 1 July 2026 and now counts all of its sales.
Is Suzano Listed in the United States?
Yes, its American depositary shares, which are US-traded certificates for its Brazilian shares, trade on the New York Stock Exchange as SUZ. Its São Paulo shares trade as SUZB3.
Why Did Suzano’s Margin Fall Even Though Profit Rose?
Adjusted EBITDA, a measure of operating earnings, grew 9% but revenue grew 36%, so the margin slipped from 43% to 34%. The paper and packaging margin alone fell to 11% from 22%.
Sources: Suzano S.A., Earnings Release for the Third Quarter of 2026 (Form 6-K filed with the US Securities and Exchange Commission), 5 November 2026; Brazilian real per US dollar, market close of 5 November 2026 (R$5.5051).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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