BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q2 2025 earnings summary

Executive summary

• Net revenue for the first half of 2025-26 ranged from R$607.7 million to R$645.6 million, up as much as 54% year-over-year, with net income at R$77.8 million, reversing a prior-year loss and reflecting strong operational and real estate performance.

• Adjusted EBITDA reached up to R$200.4 million with a 31% margin, and net profit margin was 12%.

• Results were driven by higher commodity prices, productivity gains, and major farm sales, especially in sugarcane and soy.

• Diversification in crop mix and planted area reduced risk and improved resilience.

• Favorable weather and operational expansion, including acquisitions, supported growth.

Financial highlights

• Net revenue for the first half: up to R$645.6 million, a 54% increase year-over-year; adjusted EBITDA up to R$200.4 million; net income R$77.8 million.

• Real estate sales contributed up to R$129 million in revenue and R$107.9 million in EBITDA/gains.

• Adjusted EBITDA margin reached 31%, with net income margin at 12%.

• Gross margin improved significantly, mainly due to higher soybean and sugarcane margins.

• Net debt ranged from R$798 million to R$866.6 million, with leverage ratios up to 39.34%.

Outlook and guidance

• Positive expectations for productivity in soy, corn, and sugarcane, with ongoing investments in irrigation, crop management, and asset optimization.

• Commodity price trends remain favorable for key crops, but volatility and weather risks persist.

• Expansion in Mato Grosso and Bahia and further acquisitions expected to drive future growth.

• Planted area for 24/25 harvest projected at 176,690 ha, with total grain and cotton production expected to increase.