BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q2 2026 earnings summary

Executive summary

• Net revenue for the first six months of 2026 was R$494.0 million, up 3% year-over-year, with adjusted EBITDA at R$71.3 million and a net loss of R$61.8 million, mainly due to weak sugarcane performance and higher financial costs, despite strong grain and cotton results.

• Operational highlights include robust crop performance in grains and cotton, successful telemetrics implementation, and strategic land sales, though sugarcane productivity was negatively impacted by weather and aging fields.

• Net sales revenue decreased 19% year-over-year, and net revenue dropped 27% compared to the same period last year.

• Interim financial statements were reviewed and found compliant with CPC 21 and IAS 34, with no material misstatements.

• The company operates 21 farms across Brazil, Paraguay, and Bolivia, totaling 252,796 hectares, and maintains stable operations and liquidity.

Financial highlights

• Net sales revenue for 6M26 was R$494.0 million, a 3% increase year-over-year; adjusted EBITDA was R$71.3 million, down 64% year-over-year, and net loss stood at R$61.8 million.

• Adjusted EBITDA margin fell to 14-15% from 19-31% year-over-year.

• Gross profit dropped sharply to R$11.0 million from R$199.5 million, with total gross income from soybeans, corn, and sugarcane showing mixed results.

• Cash and cash equivalents at period end were R$38.3 million, down from R$142.9 million at June 30, 2025.

• Debt position was R$886 million, with net debt rising to R$812.7 million and leverage ratio increasing to 39.1%.

Outlook and guidance

• The 2025/26 crop season is developing under more balanced conditions, supporting expectations of improved productivity and margin recovery in the second half.

• Planted area for 2025/26 is projected at 169,858 hectares, down 2% from the previous estimate, with reductions in soybean and second-crop bean acreage.

• Production estimates for 2025/26: soybeans 249,640 tons, corn 67,276 tons, and sugarcane 2.1 million tons.

• Management expects operations to remain sustainable and continues to monitor climate and market risks.

• Cotton focus shifts to irrigated areas in Bahia, reducing exposure to high-risk, non-irrigated regions.