Cosan (CSAN3) Q2 2025 earnings summary

Executive summary

• EBITDA under management was R$6.0 billion, down from R$7.3 billion in 2Q24, with net income negative at R$946 million for 2Q25 and a consolidated net loss of R$2.73 billion for the first half, mainly due to impairments and operational disruptions.

• Dividends and interest on capital received totaled R$579 million, a significant decrease year-over-year.

• Portfolio companies showed mixed results amid macroeconomic volatility, with Rumo and Compass delivering solid operational performance, while Raízen and Moove faced operational challenges.

• Major events included the acquisition of DIPI Holdings, partial disposal of Vale S.A. shares, a fire at Moove's lubricant factory, and the discontinuation of a second-generation ethanol plant.

• Safety metrics improved quarter-over-quarter, with LTIF at 0.27, despite one fatality.

Financial highlights

• Adjusted EBITDA under management was R$6.0 billion, down 17% year-over-year, with declines in Raízen and Compass offsetting gains in Rumo and Moove.

• Net debt at Cosan Corporate remained stable at R$17.5 billion, with gross debt decreasing by R$4.1 billion year-over-year due to liability management.

• Debt Service Coverage Ratio (DSCR) was 1.2x LTM, unchanged from the previous quarter.

• Average debt cost decreased to CDI plus 0.88%, with an average maturity above six years.

• Dividends from Radar and Moove were significant cash inflows, while interest payments and principal amortization were notable cash outflows.

Outlook and guidance

• Management expects continued volatility due to restrictive interest rates, tax changes, and international tariffs, but remains focused on cost discipline, portfolio optimization, and capital structure strengthening.

• No specific forward guidance on insurance claim monetization or dividend payouts; ongoing monitoring of regulatory changes and market diversification strategies.