Raízen (RAIZ4) Q2 2026 earnings summary

Executive summary

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

• Significant improvement in Brazil Fuel Distribution EBITDA, driven by higher volumes and profitability, while ESB/EAB and Argentina segments faced pressure from lower yields, macroeconomic factors, and currency devaluation.

• Net revenue for Q2 25'26 was R$59.9 billion, down 18% year-over-year, with a net loss of R$2.3 billion compared to a profit of R$158 million in Q2 24'25.

• Net debt increased 49% year-over-year to R$53.4 billion, and leverage rose to 5.1x from 2.6x.

• Structural progress in reducing expenses and investments, with recurring G&A down 23% and CapEx down 26% year-over-year.

Financial highlights

• Adjusted EBITDA for Q2 25'26 was R$3,631 million, down 25% year-over-year.

• Recurring G&A expenses reduced by BRL 315 million in the first half, a 23% decrease year-over-year.

• CapEx reduced by 26% compared to last year, supporting capital discipline.

• Operating cash flow, excluding atypical working capital movements, generated BRL 1.2 billion more cash than the same period last year, but Q2 25'26 operating cash flow was negative R$1,048 million.

• Cash and equivalents stood at R$18.6 billion plus a USD 1.0 billion revolving credit facility.

Outlook and guidance

• Nearly half of the 2026-2027 Sugar crop hedged at BRL 1.14/lb, reducing exposure to price volatility.

• CapEx expected to be structurally lower next year due to completion of major projects and asset divestments.

• 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 reductions expected to continue, with further improvements in agricultural yields anticipated.