Boa Safra Sementes (SOJA3) Q4 2025 earnings summary

Executive summary

• Net operating revenue grew 42% year-over-year to R$2.62 billion, driven by a 34% increase in soybean seed sales and diversification into new crops such as corn, wheat, sorghum, and beans.

• Achieved record 10% market share in soybean seeds, with 996 active distributors and expanded national presence.

• Portfolio diversification into corn, sorghum, wheat, and regenerative agriculture reduced seasonality and supported growth, with new crops representing 13% of 2025 revenue.

• Expanded production capacity to 280,000 Big Bags and contracted area to 302,000 hectares, maintaining high quality standards and a 94% average germination rate.

• Celebrated five years as a listed company, marking milestones in Brazilian agribusiness and completing acquisitions such as SBS.

Financial highlights

• Gross operating revenue reached R$2.89 billion, up 44% year-over-year.

• Gross profit for 2025 was R$270 million (+12% YoY), but gross margin declined to 10% from 13% in 2024.

• Adjusted EBITDA was R$154 million (-16% YoY), with margin falling to 6% from 10%.

• Net income decreased 37% to R$101 million, with adjusted net income at R$20 million (1% margin), reflecting margin compression and higher costs.

• Operating cash flow was negative R$89 million, mainly due to increased working capital needs; cash and equivalents at year-end were R$1.1 billion.

Outlook and guidance

• Entering 2026 with a production capacity of 280,000 Big Bags, focus is on quality, operational efficiency, and maximizing installed capacity utilization.

• Market expected to remain selective, favoring companies with strong financials and delivery capacity.

• Continued emphasis on portfolio diversification, sustainable expansion, and margin recovery.

• Working capital demand expected to decrease in 2026 due to optimized operations and stable installed capacity.

• Ongoing diversification into new crops and services, with regenerative agriculture and inputs highlighted as growth areas.