Minerva (BEEF3) Q2 2025 earnings summary

Executive summary

• Achieved record gross revenue of R$14.7 billion and EBITDA of R$1.3 billion in Q2 2025, with an EBITDA margin of 9.4% and net income of R$458.3 million, the highest quarterly result in company history.

• Exports accounted for 60% of Q2 revenue, reinforcing global market access and operational flexibility.

• Integration of new South American assets progressed ahead of plan, driving operational synergies and efficiency gains.

• Maintained robust cash position of R$12.5 billion at quarter-end.

• Reinforced ESG leadership with 100% renewable energy use in Brazil and continued inclusion in top sustainability indexes.

Financial highlights

• Net revenue reached R$13.9 billion in Q2 2025, up 81.6% year-over-year and 24.3% sequentially.

• EBITDA increased 74.9% year-over-year to R$1,302.5 million, with a 9.4% margin.

• Net leverage (Net Debt/LTM Adjusted EBITDA) improved to 3.16x.

• Free cash flow for Q2 was slightly negative at R$25.7 million, but LTM free cash flow was positive at R$1.1 billion.

• Cash position of R$12.5 billion, sufficient to cover debt maturities through 2028.

Outlook and guidance

• Expect continued deleveraging and improved profitability in H2 2025, driven by seasonality and further asset integration.

• Anticipate inventory normalization and potential working capital release of R$600 million to R$1.7 billion in H2 2025.

• Integration of new assets expected to reach optimal utilization rates (75%) by year-end, supporting margin convergence.

• Strategy emphasizes geographic diversification to mitigate risks from new U.S. tariff policy, with estimated maximum impact of 5% of net revenue.

• Ongoing investments in sustainability, traceability, and carbon markets to support long-term competitiveness.