São Martinho (SMTO3) investor relations material

Executive summary

• Sugarcane processed reached 21.7 million tons, slightly below last year due to lower productivity and TRS, impacting costs and product availability.

• Net income surged 169% year-over-year to BRL 157.9 million, driven by subsidy credits, operational efficiency, and mark-to-market derivative adjustments.

• Adjusted EBITDA margin was 49.4% in 3Q26, down from 57.4% in the prior year quarter, with EBITDA declining due to lower ethanol sales.

• Corn ethanol processing rose 3% year-over-year, with strong EBITDA and EBIT growth for the segment.

Financial highlights

• Net revenue for 3Q26 was BRL 1.59 billion, down 13.6% year-over-year, mainly due to lower ethanol sales and CBIOS prices.

• Adjusted EBITDA for 3Q26 was BRL 787.1 million, a 25.6% decrease year-over-year, with a margin of 49.4%.

• Net debt at December 2025 was BRL 5.8 billion, with Net Debt/LTM EBITDA at 1.82x, up from 1.34x a year ago.

• Cash position at December was BRL 3.4 billion, with a comfortable debt amortization schedule and little short-term debt.

Outlook and guidance

• Expectation of 10%-15% cost reduction next crop year if productivity and TRS improve, targeting 24 million tons crushed.

• Ethanol sales were strategically shifted to Q4 to capitalize on better prices.

• Corn operations and processing volumes remain in line with guidance.

• Maintenance Capex expected to remain stable at BRL 1.9 billion next year, with productivity gains driving cost leverage.