Cosan (CSAN3) Q4 2025 earnings summary

Executive summary

• Managed EBITDA for Q4 2025 was R$7.8 billion and R$26.5 billion for the year, both declining from the previous year, mainly due to weaker results at Raízen and Radar.

• Adjusted net loss for Q4 2025 was R$713 million; full-year adjusted net loss reached R$4.0 billion, primarily due to lower equity income and non-recurring impairments at Raízen.

• Reported net loss for Q4 2025 was R$5.8 billion, a 38% improvement year-over-year, with full-year net loss at R$9.7 billion, largely explained by Raízen's loss and prior year impairment of Vale shares.

• Dividends and interest on equity received totaled R$479 million in Q4 and R$2.6 billion for the year, both down from 2024 due to absence of Moove dividends and lower Compass contribution.

• Ended 2025 amid a challenging macroeconomic environment, focusing on capital structure strengthening and leverage reduction.

Financial highlights

• Expanded net debt decreased to R$9.8 billion at year-end, a reduction of nearly R$14 billion year-over-year, reflecting liability management and capital market transactions.

• Debt Service Coverage Ratio (DSCR) was 0.9x in Q4 2025, down from 1.0x in Q3 2025, due to lower dividends and high financial expenses.

• Average cost of debt at quarter end was CDI + 0.97%, with average maturity of 5.8 years.

• Year-end cash position was R$16.0 billion.

• Gross debt at year-end was R$21.8 billion.

Outlook and guidance

• Focus remains on deleveraging the holding company and capital structure optimization, with the goal to bring holding company debt to zero over time through asset divestments when market conditions are favorable.

• No specific timeline for achieving zero leverage, but ongoing portfolio optimization and efficiency improvements are planned.

• Compass plans a secondary equity offering to support debt reduction.

• Moove aims to gradually return to historical profitability in 2026 by addressing inefficiencies and focusing on premium products.

• Forward-looking statements are subject to risks including economic, political, and regulatory uncertainties in Brazil.