São Martinho (SMTO3) investor relations material

Executive summary

• Net revenue for 1Q27 was BRL 1,529.8 million, down 17.6% year-over-year, mainly due to lower sugar and ethanol prices and reduced ethanol sales volume.

• Adjusted EBITDA reached BRL 582.3 million, a 27.7% decrease year-over-year, with margin dropping 5.3 p.p. to 38.1%.

• Net income was BRL 38.1 million, down 39.3% from 1Q26, reflecting lower sales volumes and prices.

• Sugarcane crushed increased 3.9% to 8.5 million metric tons, with agricultural yields up 7.0% due to normalized weather.

• Interim financial statements for the quarter ended June 30, 2026, were reviewed and found compliant with CPC 21 (R1) and IAS 34 standards, with no material misstatements identified.

Financial highlights

• Net revenue fell 17.6% year-over-year, driven by a 25.7% drop in sugar prices and a 4.2% decline in ethanol prices.

• Adjusted EBIT was BRL 121.8 million, down 63.2% year-over-year, with margin at 8.0%.

• Cash profit dropped 93.9% to BRL 9.6 million.

• Gross profit was R$316,603 thousand, compared to R$432,552 thousand in Q2 2025.

• Maintenance Capex was BRL 334.8 million, down 6.2% year-over-year.

Outlook and guidance

• Production mix shifted towards ethanol, with sugar output down 10.6% and ethanol up 19.1% year-over-year.

• Corn processing and ethanol production aligned with previously published guidance.

• Expansion Capex focused on corn ethanol plant, biomethane projects, and irrigation improvements.

• Guidance not revised due to ongoing uncertainties; more sugarcane available but lower TRS expected.

• The company highlighted risks from geopolitical conflicts and climate change, which could impact input costs, logistics, and yields.