São Martinho (SMTO3) investor relations material

Executive summary

• Net income for 2Q26 was BRL 176.4 million, down 5.9% year-over-year but up 180.8% sequentially, with net revenue at BRL 1.74 billion, reflecting lower sugar and ethanol sales and adverse weather impacts.

• Adjusted EBITDA for 2Q26 was BRL 816.9 million, a 13.4% decrease year-over-year, with a margin of 47.0%, mainly due to weaker sugar results.

• Production mix shifted to 51% ethanol and 49% sugar, driven by better ethanol prices and working capital advantages.

• Sales volume for sugar and ethanol combined was 15% lower year-over-year, with 60% of ethanol sales still to be realized in the second half.

• Growth in cogeneration, yeast, and DDGS revenues partially offset declines in sugar and ethanol.

Financial highlights

• Adjusted EBIT margin declined year-over-year due to lower prices and operating leverage, standing at 21.1% in 2Q26.

• Cash income year-to-date was BRL 1,019 million, down 13% from the previous year, mainly due to lower sugar prices and reduced crushing.

• Corn processing generated BRL 146.2 million EBITDA and BRL 133.7 million EBIT in 6M26, with a margin of 31-34.4%.

• Cash COGS in 2Q26 was BRL 761.0 million, down 11.9% year-over-year, due to lower sales and improved industrial efficiency.

• Financial result (cash) was an expense of BRL 67.3 million in 2Q26, 17.6% lower year-over-year.

Outlook and guidance

• Sugarcane crushing guidance revised down to 22 million tons for the crop year, with TRS production projected at 3,027.5 thousand metric tons.

• Maintenance CAPEX for next crop year expected below BRL 1.9 billion, with total CAPEX at BRL 2.8 billion, a 5.3% reduction from previous guidance.

• Ethanol expected to remain a key product due to favorable pricing and tax credit monetization.

• Corn ethanol EBITDA projected at BRL 350 million for the year.

• Sugar and ethanol margins for next year will depend on yield recovery and market prices.