Cosan (CSAN3) Q1 2025 earnings summary

Executive summary

• EBITDA under management reached R$5.0 billion, down 30% year-over-year, reflecting operational and market challenges, including the Moove fire and lower results from Raízen and Rumo.

• Net loss for the quarter was R$1.8 billion at Cosan Corporate, compared to a net profit in Q1 2024, mainly due to lower equity pickup and asset impairments.

• Net debt at Cosan Corporate decreased to R$17.5 billion, down R$6.0 billion from 4Q24, driven by the Vale share sale and liability management initiatives.

• Major events included the sale of a significant stake in Vale S.A., a fire at Moove's industrial complex, and early redemption of bonds and debentures.

• Dividends and interest on capital received increased to R$1.5 billion, supporting cash flow.

Financial highlights

• Net sales were R$9.66 billion, a 1.8% decrease year-over-year, with gross profit at R$2.87 billion and EBITDA at R$967.9 million.

• Net debt reduced by 26% versus December 2024, reaching R$17.5 billion, with gross debt at R$21.7 billion and increased liquidity.

• DSCR improved to 1.2x LTM, and average debt maturity extended to 6.4 years with average cost reduced to CDI + 0.91%.

• Cash and cash equivalents at quarter-end were R$4.2 billion.

• Basic and diluted loss per share was R$0.96.

Outlook and guidance

• Operational resilience and portfolio diversification are expected to support future performance despite macroeconomic and sector-specific challenges.

• Focus remains on liability management, cost reduction, and business continuity, especially at Moove and Raízen.

• The company is implementing operational continuity plans following the Moove fire, with insurance expected to mitigate losses.

• New investments and capital management initiatives aim to optimize the corporate structure and improve liquidity.

• Statements about future operations are subject to economic, political, and regulatory risks in Brazil, as well as currency volatility and changes in consumer demand.