Pulpmaker Suzano posts slightly beat to core earnings, hikes investment outlook

Brazilian pulpmaker Suzano SUZB3 posted on Wednesday a second-quarter core earnings slightly above analysts estimates, while it also raised planned investments for 2025 by about 7% after announcing a deal to swap standing timber.

Core earnings, as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), stood at 6.09 billion reais, down 3% but slightly above the 5.87 billion reais expected in an LSEG poll of analysts.

In a separate filing, Suzano also raised the estimated capital expenditures (CAPEX) for the year to 13.3 billion reais, from 12.4 billion reais previously.

The change, Suzano said, reflects an agreement with Eldorado Brasil Celulose to exchange Eldorado's mature standing timber for Suzano's immature timber.

The deal will also require Suzano to pay 1.32 billion reais ($241.80 million) to Eldorado, it said.

Suzano's net profit in the second quarter came in at 5-billion-real ($915.90 million), reversing the 3.77-billion-real net loss posted a year earlier. Analysts polled by LSEG expected a net profit of 3.97 billion reais.

Net revenue rose 16% from a year earlier to 13.3 billion reais, beating the 12.8 billion reais expected by analysts.

($1 = 5.4591 reais)