Jalles Machado (JALL3) Q3 2026 earnings summary

Executive summary

• Net income reached R$60.4 million in 9M26, reversing prior losses, driven by improved financial results and effective hedging strategies, despite lower yields and challenging weather.

• Adjusted EBITDA for 9M26 was R$1,023.7 million, up 7.7% year-over-year, with margin expanding to 61.6%.

• Production mix shifted toward ethanol (53.6% of output), capitalizing on favorable price parity and market conditions.

• Gross revenue declined 1.3% year-over-year to R$1,868.1 million, reflecting lower sugar prices and volumes, partially offset by higher ethanol revenues.

• Cost optimization, efficiency gains, and cash preservation remain priorities amid sector headwinds.

Financial highlights

• Net revenue for 9M26 was R$1,661.1 million, down 1.4% year-over-year; gross profit dropped 82.1% to R$103.6 million, with gross margin at 6.2%.

• Adjusted EBIT for 9M26 was R$182.7 million, down 44.1% year-over-year; Adjusted EBIT margin fell to 11.0%.

• Hedge results (settlement and MTM) totaled R$267.3 million, a 182.4% increase over 9M25.

• Net financial results turned positive at R$96.3 million, reversing a R$586.0 million loss in 9M25, mainly due to favorable hedge settlements and MTM effects.

• Cash and equivalents reached R$2,060.4 million, covering debt maturities through 2029/30.

Outlook and guidance

• 75% of 2026/27 sugar production is hedged at R$2,475/ton, above historical averages, providing margin predictability.

• Liquidity remains robust, with cash covering debt maturities through 2029/30.

• Weather outlooks are favorable, and operational efficiency initiatives are expected to support margin expansion.

• Management projects continued volatility due to market, economic, and sector-specific risks.

• No buyback program planned; focus remains on cash preservation and essential investments.