Suzano hits record R$16.5 billion revenue in first quarter with Arbex

The Arbex effect materializes in Suzano's balance sheet

The integration of downstream operations has officially reshaped the financial profile of the world's largest pulp producer. Suzano closed the third quarter of 2026 with a net revenue of R$16.5 billion, a 36% year-over-year increase that marks the highest quarterly billing in the Brazilian giant's 102-year history. This surge is not merely a reflection of favorable commodity cycles, but the direct result of consolidating Arbex, the tissue joint venture established with Kimberly-Clark in July.

Under the leadership of CEO Beto Abreu, the company is demonstrating the sheer scale of its strategic pivot. While Suzano remains an upstream powerhouse—selling 3.2 million tonnes of pulp at an average export price of USD 591 per tonne during the quarter—the operational mix is shifting. The newly structured Consumer Goods division, which now houses Arbex alongside Suzano's domestic tissue operations, moved 299,000 tonnes and generated R$5.0 billion in revenue, with R$4.2 billion coming from international markets. Meanwhile, the traditional Paper and Packaging segment, now separated from consumer hygiene products, accounted for 374,000 tonnes.

A structural shift with financial weight

The mechanics of the Arbex deal are crucial to understanding Suzano's current balance sheet. By acquiring a 51% stake for USD 1.3 billion, Suzano fully consolidates the joint venture's financial statements, while Kimberly-Clark's 49% is accounted for as a non-controlling interest. This full consolidation pushed Suzano's adjusted EBITDA to R$5.7 billion, a 9% increase, with the Consumer Goods unit alone contributing an adjusted EBITDA of R$803 million.

However, this aggressive downstream integration comes with expected financial pressure. Net leverage measured in US dollars ended the quarter at 3.7 times. This metric absorbs the full impact of the USD 1.3 billion acquisition and the consolidation of all of Arbex's net debt, while only reflecting three months of the joint venture's EBITDA generation. As the tissue market continues to demand high-quality eucalyptus fiber, Suzano's move secures a massive, captive international channel for its pulp, transforming the company from a pure-play raw material supplier into a globally integrated consumer goods competitor.