Raízen (RAIZ4) Q1 2026 earnings summary

Executive summary

• Progress made in executing a strategy focused on 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 in ESB.

• Net revenue reached BRL 54.2 billion, a 6.1% decrease year-over-year, with a net loss of BRL 1.84 billion versus a net 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/SG&A expenses year-over-year.

• Strengthened debt profile by replacing short-term lines with long-term debt and reducing supplier financing.

Financial highlights

• Net revenue was BRL 54.2 billion, down 6.1% year-over-year; gross profit declined 20.9% to BRL 2.1 billion.

• Net loss for the quarter was BRL 1.84 billion, compared to net income of BRL 1.07 billion in the same quarter last year.

• Adjusted EBITDA totaled BRL 1.89 billion, down 23.4% year-over-year; reported EBITDA down 53.3%.

• Net debt increased 55.8% year-over-year to BRL 49.2 billion, with net debt/Adjusted EBITDA LTM rising to 4.5x from 2.3x.

• Investments and CAPEX reduced by 23% year-over-year, aligning with the annual investment plan.

Outlook and guidance

• Focus remains on operational stability, process consistency, and safety in E2G operations, with disciplined investments and asset portfolio optimization.

• 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.

• Completion of the Buenos Aires refinery efficiency project expected within the crop year.

• Ongoing portfolio optimization and divestments to improve profitability and risk profile.