BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q1 2026 earnings summary

Executive summary

• Net revenue for 1Q26 was R$286.6 million, with Adjusted EBITDA of R$64.3 million and a net loss of R$64.3 million, reflecting seasonally weaker results, absence of farm sales, and significant mark-to-market and fair value impacts on receivables and biological assets.

• Revenues from operations decreased 7% year-over-year, and net sales revenue dropped 33–37% compared to 1Q25.

• Operational results benefited from diversification across commodities, but profitability declined sharply due to lower sugarcane sales and negative financial results from higher debt costs.

• Dividend distribution of R$75 million (R$0.75/share, 9.6% yield) was approved in October.

• Operationally, 34% of soybean area was sown and 1.6 million tons of sugarcane harvested by September.

Financial highlights

• Net operational revenue was R$286.6 million, down 34–37% year-over-year, mainly due to lower ATR levels in sugarcane and absence of farm sales.

• Adjusted EBITDA margin fell to 22% from 37% in 1Q25, with net loss of R$64.3 million driven by non-cash mark-to-market adjustments and fair value updates.

• Gross margin was negative at -2%, with gross loss of R$5.7 million versus gross profit of R$134.7 million in 1Q25.

• Cash and cash equivalents rose to R$218.9 million, up 53% year-over-year.

• Receivables from farm sales and soy total over R$650 million, supporting future cash inflows and liquidity.

Outlook and guidance

• Expectation of a strong soy harvest in Brazil, with 56% of the current crop already sold at favorable prices.

• 2025/26 harvest projects 20–21% higher total crop production, with soybeans up 17% and corn up 43% year-over-year.

• Sugarcane output for 2025 is revised to 1.7 million tons, with yield at 67.78 TCH, due to adverse weather and field conditions.

• Planting in Mato Grosso is progressing within the optimal window, though dependent on rainfall distribution.

• Input purchases for the 25/26 harvest are well advanced, with most key fertilizers and defensives secured.