Raízen (RAIZ4) Q1 2026 earnings summary

Executive summary

• Progress made in portfolio simplification, operational efficiency, and capital structure strengthening, including divestment and hibernation of two mills, sale of distributed generation assets, and completion of a joint venture.

• Net revenue fell 6.1% year-over-year to BRL 54.2 billion, with a net loss of BRL 1.84 billion versus a profit of BRL 1.07 billion in the prior year.

• Adjusted EBITDA dropped 23.4% year-over-year to BRL 1.89 billion, with segment performance varying across business lines.

• Efficiency gains achieved through a 20% reduction in consolidated G&A expenses year-over-year.

• Organizational structure now centers on three core businesses: ESB, fuel distribution in Brazil, and Argentina.

Financial highlights

• CAPEX was BRL 1.7 billion, down 23% year-over-year, aligning with the annual investment plan.

• Net debt increased 55.8% year-over-year to BRL 49.2 billion, mainly due to liability management and refinancing activities.

• Net debt/Adjusted EBITDA LTM rose to 4.5x from 2.3x year-over-year.

• Cash and equivalents at end of period were BRL 15.7 billion, with BRL 5.5 billion in available credit facilities; post-quarter, BRL 5.9 billion additional funding secured.

• Operating and free cash flow were negative, reflecting seasonality, working capital, and capital structure optimization.

Outlook and guidance

• Investments remain disciplined and in line with planned reductions, prioritizing operational safety, field renewal, and project completions.

• Guidance for sugarcane crushing is 72–75 million tons, with expectations toward the lower end due to weather challenges.

• Expectation to receive BRL 2.6 billion from divestments by year-end; potential capital increase under early discussion.

• Focus remains on executing operational and investment plans and advancing long-term strategy.