Cosan (CSAN3) Q2 2026 earnings summary

Executive summary

• Compass IPO generated R$2.3 billion in net proceeds, strengthening capital structure and supporting deleveraging initiatives.

• Sale of a portion of Radar's land portfolio for R$1.85 billion, with R$586 million attributable, and a letter of intent for full divestment of Port São Luís for R$300 million plus potential earn-out.

• Net loss of R$320 million in 2Q26, a significant improvement year-over-year, mainly due to lower tax expenses, improved financial results, and reduced G&A costs, despite a one-off impairment of R$233 million for Port São Luís.

• Expanded net debt reduced by 47% year-over-year and 20% sequentially, reaching R$9.2 billion, reflecting liability management and proceeds from divestments and the Compass IPO.

• Significant management changes, ongoing simplification of the holding structure, and delisting of ADSs from NYSE to reduce costs and streamline operations.

Financial highlights

• Net operating revenue grew 3% year-over-year to R$10.8 billion in 2Q26.

• Gross profit increased 12% to R$4.0 billion, with a 31% sequential rise.

• Adjusted EBITDA for the portfolio: Rumo R$2.3 billion (-1% YoY), Compass R$1.3 billion (+5%), Moove R$475 million (-6%), Radar -R$29 million.

• Dividends and interest on capital received totaled R$399 million in the quarter.

• Cash and cash equivalents at period end were R$7.3 billion.

Outlook and guidance

• Debt service coverage ratio (DSCR) guidance for December 2026 set at 0.8x–1.2x, supported by expected dividends, asset sales, and ongoing liability management.

• Projected dividends received (cash effect) expected between R$1.3 billion and R$1.8 billion, including R$586 million from Radar sale.

• Further cost reductions and simplification of the holding structure anticipated, with additional G&A savings targeted for 2027.