Q1 2026 Suzano SA Earnings Call (English, Portuguese) Transcript
Key Points
- Suzano SA (SUZ) operates under long-term contracts with dedicated vessels, protecting against increases in freight rates and ensuring reliable services.
- The company has inside-the-fence production of critical inputs, mitigating supply risk and cost pressures.
- Suzano maintains a hedge portfolio to mitigate exposure to Brent-related volatility, providing a competitive advantage in the current volatile environment.
- EBITDA for the first quarter reflects a solid performance with volumes above the first quarter of 2025, supported by higher pricing and offsetting inflation.
- The company is running operations with 10% less headcount compared to a year ago, indicating efficiency improvements.
- International markets face a challenging environment with weaker demand and excess capacity for papers, leading to price pressures.
- The US market has seen reduced shipments due to tariffs, affecting export prices and EBITDA.
- Pulp production volumes were below budgeted levels due to nonrecurrent events during planned maintenance, preventing inventory replenishment.
- The ongoing conflict in the Middle East is expected to impact energy and logistics costs, potentially increasing cash costs in the second quarter.
- Suzano's share price performance has been disappointing, with concerns over capital allocation and leverage levels affecting investor sentiment.
Ladies and gentlemen, thank you for holding, and welcome to Suzano's conference call to discuss the results for the first quarter of 2026. (Operator Instructions) This call will be presented in English with simultaneous translation to Portuguese. (Operator Instructions)
Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Suzano's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and, therefore, depend on circumstances that may or may not occur in the future.
You should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Suzano and could cause results to differ materially from those expressed in such forward-looking statements.
Now I will turn the conference over to Mr. Beto Abreu. Please, you may begin your presentation.
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