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

Executive summary

• Net revenue for the first six months was R$470.3 million, with adjusted EBITDA at R$71.3 million and a net loss of R$61.8 million, reflecting seasonal challenges, operational headwinds, and lower sugarcane contribution, partially offset by strong grain and cotton performance and strategic inventory sales.

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

• Sugarcane productivity was significantly impacted by frost, fire, pests, and lower ATR, while soy, corn, and cotton benefited from favorable market conditions and cost savings in fertilizers.

• The company continued to diversify its crop mix, implemented telemetrics across all operational units, and invested in land transformation and irrigation to enhance efficiency.

• Land sales and real estate activities contributed to results, with a strategic focus on balancing owned and leased land for capital efficiency.

Financial highlights

• Adjusted EBITDA for the semester was R$71.3 million, down 64% year-over-year, with a net loss of R$61.8 million, compared to a R$77 million loss in the same period last year.

• Revenues from operations increased 3% year-over-year, but net sales revenue and net revenue declined by 19% and 27%, respectively.

• Adjusted EBITDA margin fell to 15% from 31% year-over-year; net income margin was -13% compared to 12% in the previous year.

• Gross margin for soybeans remained at 27% in 6M26; corn gross margin improved to 17% from -6% in 6M25.

• Receivables from farm sales totaled approximately R$120 million, with over 5.5 million sacks outstanding.

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.

• Sugarcane productivity is expected to recover in the next cycle due to improved management, increased fertilization, and younger plantations.

• Cotton production is being concentrated in irrigated areas to reduce risk and improve margins, with off-season and high-risk regions being scaled back.

• Climate outlook for the coming months is generally positive for operational regions, though localized climate risks remain.

• Land price adjustments and lower interest rates could present acquisition opportunities in the medium term.