GET DAILY SIGNALSSuzano (SUZ) Delivers Record Q3 Revenue as Tissue Business Adds Scale
Key Takeaways
- Suzano reported third-quarter 2026 net income of R$2.1 billion, up 6% from R$1.96 billion a year earlier.
- Net revenue jumped 36% year over year to R$16.5 billion, the highest quarterly revenue in the company's history, though slightly below the LSEG consensus estimate of R$16.8 billion.
- Adjusted EBITDA rose 9% to R$5.7 billion, essentially in line with the R$5.8 billion analysts expected; the adjusted EBITDA margin narrowed to 34% from 43%.
- Net debt in U.S. dollars climbed 15% during the quarter to US$14.7 billion, lifting leverage (net debt to adjusted EBITDA) to 3.7 times from 3.3 times.
- The newly consolidated Arbex tissue business, acquired from Kimberly-Clark, drove consumer-goods volumes up 369% year over year to 299,000 tonnes.
- Suzano raised its 2026 pulp cash-cost guidance to roughly R$825 per tonne from R$800, citing currency, oil prices, and Middle East-related pressures.
- For more detail on the latest developments, visit Suzano's Major News, Today's Price Move, Price Targets, and Forecast pages.
- For automated, AI-driven trade ideas, explore Trending AI Robots.
Why These Results Matter
Suzano, the world's largest producer of hardwood eucalyptus pulp, is navigating a pivotal moment. The quarter marked the first full reporting period consolidating Arbex, the global tissue business formed through its partnership with Kimberly-Clark, which closed on July 1, 2026. That deal reshapes revenue mix and reduces reliance on cyclical pulp prices. At the same time, the company is contending with rising cash costs, a stronger Brazilian real, and elevated energy prices tied to geopolitical tensions. The results offer investors an early read on whether the diversification strategy is delivering while testing the balance sheet as leverage moves higher. For a stock closely tied to global pulp pricing and foreign-exchange swings, the report is a key signal of near-term earnings power and capital-allocation discipline. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter in Detail
Suzano posted third-quarter 2026 net income of R$2.1 billion, a 6% increase from the R$1.96 billion reported a year earlier. Net revenue surged 36% to R$16.5 billion, a record for the company, but came in just below the LSEG consensus estimate of R$16.8 billion. Adjusted EBITDA grew 9% to R$5.7 billion, roughly matching the R$5.8 billion analysts had projected, while the adjusted EBITDA margin narrowed to 34% from 43% in the prior-year quarter.
Operating cash flow reached R$3.84 billion, up 12% year over year. The quarter's growth was powered by the consolidation of Arbex: the consumer-goods segment generated R$5 billion in net revenue, with R$4.2 billion of that from international markets, and its sales volumes jumped 369% to 299,000 tonnes. Pulp sales totaled 3.2 million tonnes, while paper and packaging volumes reached 374,000 tonnes. On the balance sheet, net debt rose to US$14.7 billion, and leverage ended the quarter at 3.7 times, up from 3.3 times a year earlier.
Market Response
Suzano's American Depositary Receipts (ADRs) finished the reporting day modestly lower, closing around US$9.50, a decline of roughly 0.6% on the session. The muted reaction reflected a mixed report: a record revenue print and solid year-over-year profit growth were offset by revenue that narrowly missed consensus and a jump in leverage to 3.7 times. Investors also digested the upward revision to 2026 cash-cost guidance, which signals that margin pressure from currency, energy, and logistics costs may persist longer than initially anticipated. The higher net debt, driven by the Arbex acquisition payment and the debt assumed in the deal, remains a central focus for the market even as management emphasizes deleveraging as a priority.
What to Watch Going Forward
Several themes will shape how investors interpret Suzano's next few quarters. First is cost control. The company raised its 2026 average cash-cost guidance to approximately R$825 per tonne, up from R$800, reflecting a stronger U.S. dollar exchange rate, higher Brent crude prices, and ripple effects from the Middle East conflict. Watching whether these costs stabilize or keep climbing will be central to assessing margin recovery.
Second, the integration of Arbex will be closely scrutinized. The tissue business adds scale and geographic diversification, but purchase-price allocation and depreciation are already weighing on reported net income. Investors will monitor whether Suzano can extract the synergies and efficiency gains management has flagged for the coming years.
Finally, pulp pricing and deleveraging remain the dominant swing factors. Hardwood pulp prices have shown signs of improvement in Western markets, while Chinese spot prices have been softer. The path of leverage—currently 3.7 times in U.S. dollar terms—will depend on cash generation, capital-expenditure discipline, and potential non-core asset sales. Together, these variables will determine whether the record revenue momentum translates into sustained profitability improvements. From what I see, tracking these elements with data tools helps clarify the picture.
Using AI Tools in My Research Process
In my own analysis, I frequently rely on Tickeron’s AI Screener to filter stocks by technical patterns, fundamentals, and performance metrics. It helps surface relevant comparisons in the paper and pulp sector and supports quicker identification of potential setups without manual effort. The tool has become a regular part of reviewing names like Suzano and assessing broader industry trends alongside traditional data sources.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SUZ in upward trend: 10-day moving average moved above 50-day moving average on November 03, 2026
The 10-day moving average for SUZ crossed bullishly above the 50-day moving average on November 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 68%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on SUZ as a result. In 54 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 67%.
The Moving Average Convergence Divergence (MACD) for SUZ just turned positive on October 22, 2026. Looking at past instances where SUZ's MACD turned positive, the stock continued to rise in 28 of 45 cases over the following month. The odds of a continued upward trend are 62%.
SUZ moved above its 50-day moving average on October 26, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +0.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where SUZ advanced for three days, in 177 of 283 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 130 of 219 cases where SUZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SUZ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
SUZ broke above its upper Bollinger Band on October 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 37 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.237) is normal, around the industry mean (0.333). P/E Ratio (1.448) is within average values for comparable stocks, (2.698). Projected Growth (PEG Ratio) (0.260) is also within normal values, averaging (0.185). Dividend Yield (0.000) settles around the average of (0.582) among similar stocks. SUZ's P/S Ratio (1.206) is slightly higher than the industry average of (0.381).
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. SUZ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 50 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 69 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SUZ’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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General Information
a manufacturer of pulp, paper and paperboard
Industry PulpPaper
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