Jalles Machado (JALL3) investor relations material

Executive summary

• The year ending March 31, 2026, was marked by operational resilience amid climate and market volatility, with sugarcane crushing reaching 7.08 million tons and productivity slightly above the regional average despite adverse weather in key states.

• Net revenue for 2025/26 was R$2,148.9 million, with net income of R$9.5 million, reversing the prior year's loss.

• Strategic advances included R$1.3 billion in diversified funding, completion of a liquid fertilizer plant, and expansion of irrigated areas to boost future productivity and mitigate climate risks.

• ESG initiatives progressed, with improved climate and water management, a B rating in CDP, and the Gold Seal in the GHG Protocol, alongside programs to foster gender equity and leadership diversity.

• The company maintained resilience amid challenging climate and market conditions, with strategic advances in governance, cost control, and capital structure.

Financial highlights

• Consolidated net operating revenue for 2025/26 was R$2.15 billion, down 8.1% year-over-year, with gross revenue at R$2.43 billion, a 7.8% decrease.

• Adjusted EBITDA reached R$1.31 billion, a decline of 11.8% year-over-year, with an adjusted EBITDA margin of 60.8%.

• Adjusted EBIT was R$203 million, down 51.6% year-over-year; net income was R$9.5 million, reversing a prior year loss.

• Cash and equivalents rose 45.5% to R$1.81 billion, covering short-term debt 9.8 times.

• Hedge results contributed R$299.6 million, up 219% from the previous year.

Outlook and guidance

• For 2026/27, sugarcane crushing is projected to rise 10.2% to 7.8 million tons, with productivity (TCH) expected to increase 8.0% to 80.4 t/ha.

• Capex is forecast at R$610.3 million, down 9.8%, with increased investment in irrigation.

• Price environment remains challenging, but hedging provides margin protection.

• Ethanol production volume forecasted to grow by 18% to 372,000 m³, while sugar output is expected to decrease by 4.2%.

• Guidance points to a more ethanol-oriented mix (59% ethanol, 41% sugar).