Shares of Suzano Papel e Celulose SA (NYSE:SUZ) are soaring 5.02% in Thursday's pre-market trading following the release of its impressive second-quarter 2025 financial results. The world's largest pulp producer reported a significant boost in sales and profitability, largely attributed to the strong performance of its new Ribas do Rio Pardo pulp mill.
Suzano's Q2 earnings per share skyrocketed to $0.71, marking a remarkable 227.32% increase from a loss of $(0.56) in the same period last year. The company's sales climbed to $2.35 billion, up 6.38% year-over-year. The stellar performance was underpinned by a 28% surge in pulp and paper sales volumes, reaching 3.7 million tonnes, primarily driven by the new mill that commenced operations in July 2024.
Despite lower global pulp prices compared to Q2 2024, Suzano's net revenue rose 16% to R$13.3 billion. The company's adjusted EBITDA hit R$6.1 billion, with net profit soaring to R$5.0 billion, boosted by favorable currency effects. CEO Beto Abreu highlighted the Ribas do Rio Pardo mill's contribution to cost competitiveness and expressed optimism about the recently announced joint venture with Kimberly-Clark. With a cash cost of pulp production at R$832 per tonne and expectations of further cost reductions, investors appear bullish on Suzano's growth trajectory and improved market position.
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