Suzano’s Q2 Profit Falls 64% as Last Year’s Currency Windfall Fades
Brazil · Business
The world’s biggest pulp maker still earned R$1.8 billion. But a swing in financial results shows how much last year’s numbers leaned on the exchange rate.
Suzano, the world’s largest producer of eucalyptus pulp, saw its second-quarter profit fall by nearly two-thirds. The headline looks alarming.
But the story underneath is less about the business faltering and more about how much last year’s bumper result depended on a favourable swing in the exchange rate.
What Suzano reported
The company posted net income of R$1.81 billion, about US$335 million, for the second quarter of 2026. That is down 64% from the R$5.01 billion it earned in the same quarter a year earlier.
On its own, a drop that steep would worry anyone, so it is worth looking at what actually changed.
Why the profit fell so sharply
The fall was not really driven by the day-to-day business of making and selling pulp. The bigger factor was the financial result, which swung from a positive R$4.4 billion a year ago to roughly break-even this time.
Last year, a favourable move in the currency handed Suzano large paper gains on its dollar-linked debt and hedges. This year, that tailwind simply did not repeat.
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What Suzano Papel e Celulose does.Suzano S.A. manufactures and sells pulp and paper products in Brazil and internationally. It operates in two segments, Cellulose, and Paper. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps. It also engages in the research, development, and production of biofuel; operation of…
A company with a lot of dollar exposure
Suzano sells most of its pulp abroad and carries much of its debt in dollars. So the exchange rate looms large in its accounts.
When the real weakens or strengthens, the value of that debt shifts, producing big non-cash swings in reported profit. That is why one quarter can look spectacular and the next merely solid, even when the underlying operation barely changes.
The operating picture
Strip out the currency noise and the operating business held up reasonably well. Net revenue came in at R$11.59 billion, about US$2.15 billion, down 13% from a very strong prior-year quarter.
Adjusted EBITDA, a cleaner read on core profitability, was R$4.70 billion, roughly US$870 million.
How much pulp Suzano moved
Volumes tell you how the core machine is running, and here the numbers were substantial. Suzano sold 2.9 million tonnes of pulp in the quarter, plus paper on top of that.
Together, pulp and paper sales came to 3.3 million tonnes, with paper accounting for around 406,000 tonnes.
The pulp market backdrop
Pulp is a global commodity, and its price moves with demand from paper and tissue makers, especially in China. Softer revenue year-on-year reflects a market that has cooled from the highs of the previous year.
For a low-cost producer like Suzano, though, even a softer market still leaves room for healthy margins.
Why Suzano’s costs matter
Suzano’s great advantage is that it grows eucalyptus faster and cheaper than almost anyone else in the world. Brazil’s climate lets its trees mature in about seven years, far quicker than in colder regions.
That low cost base is what lets the company stay profitable through the dips in the pulp price cycle.
Reading past the headline
The 64% drop is real, but it is mostly an accounting comparison against an unusually flattering quarter. The cash-generating heart of the business, measured by EBITDA and volumes, remained solid.
For investors, the lesson is to watch the operating numbers rather than react to profit lines that the currency can whipsaw.
What to watch next
The key things to follow are the global pulp price and demand signals out of China. The exchange rate will keep swinging reported profit around, so EBITDA is the steadier gauge.
If pulp prices firm up, Suzano’s low costs mean the upside could come through quickly.
Frequently Asked Questions
How much did Suzano earn in Q2 2026?
Net income of R$1.81 billion (about US$335 million), down 64% from R$5.01 billion a year earlier.
Why did Suzano’s profit fall so much?
Mainly because of the financial result. Last year’s quarter included a large favourable currency swing on its dollar debt that did not repeat this year.
How did the core business do?
Net revenue was R$11.59 billion (down 13%) and adjusted EBITDA was R$4.70 billion. With 2.9 million tonnes of pulp sold, so operations held up.
What does Suzano do?
Suzano is the world’s largest producer of eucalyptus pulp. The raw material for paper and tissue, and it exports most of its output.
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