BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q3 2025 earnings summary

Executive summary

• Net profit for 9M25 reached R$76.7 million, with a net margin of 9%, and adjusted EBITDA totaled R$195.3 million, margin of 22%, reversing a prior year loss and driven by higher soybean, cotton, and sugarcane sales.

• Net revenue for the first nine months of 2024-2025 was R$870.5 million, up 43% year-over-year, supported by higher prices and volumes in key crops.

• Expansion included over 20,000 hectares of new plantations, mainly in Mato Grosso, and the acquisition of Companhia Agrícola Novo Horizonte.

• Farm sales and portfolio expansion, including Alto Taquari and Rio do Meio transactions, contributed R$107.9 million in gains.

• Despite macroeconomic challenges, including high global interest rates, currency volatility, and adverse weather, commodity prices in reais remained favorable, supporting margins.

Financial highlights

• Net sales revenue for 9M25 was R$778.0 million, up 43% year-over-year; adjusted EBITDA reached R$195.3 million, with a margin of 22%.

• Net income for 9M25 was R$76.7 million, reversing a loss of R$6.0 million in 9M24; gross profit rose to R$254.2 million from R$32.4 million.

• Gains from farm sales in 9M25 totaled R$107.9 million.

• Cash and cash equivalents at March 31, 2025, were R$64.1 million, down from R$171.0 million at June 30, 2024.

• Leverage ratio increased to 39.7% from 25.4% at June 30, 2024.

Outlook and guidance

• Planted area for 24/25 harvest is projected at 175,646 ha, up 3% from the previous year, with a 1% deviation from initial estimates.

• Revised grain and cotton production for 24/25 is 378,900 tons, down 6% from initial estimates due to weather impacts; sugarcane production for 2025 harvest is projected at 2.2 million tons.

• Hedge positions as of May 2025 cover 83% of soybean and 71% of cotton for the 24/25 harvest.

• Management is rethinking capital allocation and funding strategies in response to higher interest rates and changing market conditions.

• U.S. agricultural tariffs and global volatility are being closely monitored for their impact on competitiveness and risk.