São Martinho (SMTO3) Q2 2027 earnings summary

Executive summary

• 2Q27 net revenue rose 7.7% YoY to BRL 1.873bn, while adjusted EBITDA fell 6.9% to BRL 760.9m and net income fell 71.1% to BRL 50.9m.

• 6M27 revenue fell 5.4% to BRL 3.403bn, adjusted EBITDA fell 17.2% to BRL 1.343bn and net income fell 62.8% to BRL 89.1m.

• Rainfall reduced cane quality and crushing availability, leading to lower 2026/27 production guidance and a 47% sugar/53% ethanol mix.

Financial highlights

• 2Q27 net revenue was BRL 1,872.9m, up 7.7% YoY; higher sales volume, especially ethanol, offset lower prices.

• Adjusted EBITDA was BRL 760.9m in 2Q27, down 6.9% YoY, with a 40.6% margin; 6M27 EBITDA was BRL 1,343.2m, down 17.2%.

• Adjusted EBIT was BRL 95.1m in 2Q27, down 74.1% YoY; 6M27 adjusted EBIT of BRL 216.8m fell 68.9%.

• Net income was BRL 50.9m in 2Q27, down 71.1%; 6M27 net income of BRL 89.1m fell 62.8%.

• 2Q27 cash COGS rose 32.5% YoY to BRL 1,008.4m, mainly reflecting higher TRS sold, particularly biofuel.

Outlook and guidance

• FY2026/27 guidance: 22.822m tons crushed (-3.5%), average TRS of 132.2 kg/ton (-7.3%) and TRS output of 3.016m tons (-10.5%) versus prior guidance.

• Cane guidance includes 1.355m tons of sugar, 935,000 m³ of ethanol and a 47%/53% sugar/ethanol mix; ~2.0m tons of cane carry over to 2027/28.

• Corn guidance holds processing at 495,000 tons and ethanol at 209,400 m³; DDGS was revised to 127,100 tons (-5.3%) and corn oil to 8,200 tons (+4.3%).

• FY2026/27 capex guidance is BRL 2.910bn, down 1.4%: BRL 1.960bn maintenance, BRL 150m operational improvements and BRL 800m expansion.