SÃO PAULO (News release) -- Suzano, the world's largest pulp producer, announces its results for the second quarter of 2025 (2Q25), reporting sales of 3.7 million tonnes of pulp and paper. Sales increased 28% over the same period in 2024 (2Q24), mainly reflecting the strong operational contribution of the new Ribas do Rio Pardo pulp mill, whose production started in July 2024. Net revenue in the quarter totaled R$13.3 billion, a 16% increase compared to 2Q24.

The expansion of pulp production capacity in Brazil, combined with the positive contribution to paper sales from the mills recently acquired in the United States and favorable FX rates, mitigated the impact on net revenue of lower pulp prices in the global market compared to 2Q24. As a result, Suzano's adjusted EBITDA reached R$6.1 billion and operating cash generation totaled R$4.1 billion. Net profit totaled R$5.0 billion positively impacted by the accounting impact of US dollar denominated debt and hedging operations translating into Brazilian Real.

Beto Abreu, CEO of Suzano, commented:

"We have just marked the first year of our new pulp mill in Ribas do Rio Pardo, whose strong operational performance has already strengthened our cost competitiveness. At the same time, we continued to execute on our long-term strategy of value-accretive growth, announcing our landmark joint venture with Kimberly-Clark. We will remain disciplined and focused on capturing the potential economic gains we believe exist in the new joint venture and on further enhancing our competitiveness in the coming years."

Suzano's net leverage in U.S. dollars ended the quarter at 3.1 times. The cash cost of pulp production was R$832 per tonne (excluding downtime), a result that demonstrates the beginning of a downward trend in costs, which is expected to become even more significant in the second half of 2025.