Raízen (RAIZ4) Q2 2026 earnings summary

Executive summary

• Transformation agenda focused on simplification, operational efficiency, and capital structure optimization, including significant divestments, portfolio rationalization, and asset sales.

• Net revenue for Q2 25'26 was R$59.9 billion, down 17.8% year-over-year, with a net loss of R$2.3 billion in Q2 and R$4.16 billion for the six-month period.

• Net debt increased 48.8% year-over-year to R$53.4 billion, with leverage at 5.1x; balance sheet and liquidity strengthened through liability management and refinancing.

• Efficiency gains achieved, with recurring G&A expenses down 23% and CapEx reduced by 26% year-over-year.

• Ongoing support from controlling shareholders and continued focus on long-term sustainability and capital structure alternatives.

Financial highlights

• Adjusted EBITDA for Q2 25'26 was R$3,631 million, down 25% year-over-year; gross profit fell 37.8% in Q2.

• Operating cash flow for Q2 25'26 was negative R$1,048 million, compared to positive R$794 million in Q2 24'25.

• Free cash flow to equity improved 52.4% in Q2, but remained negative year-to-date.

• Cash and equivalents at period end were R$18.6 billion, with an additional USD 1.0 billion revolving credit facility.

• Non-recurring negative impacts of R$1.0 billion from asset hibernation and sales, expected to be offset by future divestment proceeds.

Outlook and guidance

• Nearly half of next year's Sugar crop hedged at BRL 1.14/lb, reducing price volatility exposure.

• Expectation of R$3.9 billion in proceeds from announced divestments in coming months.

• Leverage anticipated to decrease as inventories are commercialized in the second half of the crop year.

• Efficiency initiatives and cost discipline expected to continue, with further CapEx reductions anticipated as major projects conclude.

• Management expects recovery in agricultural yields next year, though not a record crop, as weather conditions improve.