Boa Safra Sementes (SOJA3) Q2 2025 earnings summary

Executive summary

• Achieved record production capacity of 280,000 big bags in 2025, supporting a robust R$1.6 billion soybean order backlog and expanding into new markets through acquisitions and leasing strategies.

• Diversified portfolio with strong growth in non-soybean crops and services, with new crops and services revenue more than doubling year-over-year and a record R$52 million order book for other crops.

• Expanded presence with new distribution centers, SBS Green Seeds joint venture, and entry into southern Brazil.

• Maintained a robust order portfolio with over 200% growth in advanced payments and improved working capital.

• Focused on quality, efficiency, and expanding market presence, with over 1,000 reseller visits and a broad portfolio of 80+ soybean varieties.

Financial highlights

• Net operating revenue for 2Q25 was R$125.1 million, up 43% year-over-year; LTM net revenue was R$1.94 billion, down 2.2% due to 2024 market conditions.

• Gross profit for 2Q25 reached R$47.2 million, a 50% increase year-over-year; gross margin improved to 37.7% in 2Q25 from 36.0% in 2Q24.

• Adjusted EBITDA for 2Q25 was R$10.5 million, up 45% year-over-year; LTM adjusted EBITDA was R$187 million, down 27% year-over-year.

• Net income for 2Q25 was R$24.8 million, up 37% year-over-year; LTM net income was R$176 million, down 51% year-over-year.

• Operational cash flow increased 21% compared to Q2 2024, despite higher production and inventory levels.

Outlook and guidance

• Entered the 2025/26 crop year at full production capacity, focusing on converting robust order backlog into sales and maintaining quality standards.

• Continued focus on portfolio diversification, operational efficiency, and expansion into new crop segments and regions.

• No formal guidance provided; capital allocation decisions are made annually based on market conditions and board discussions.

• Second half of the year expected to be sales-focused, with strong execution needed to translate production into profitability.