São Martinho (SMTO3) Q4 2025 earnings summary

Executive summary

• Net revenue for 2024/25 reached R$7.2 billion, up 4% year-over-year, driven by higher ethanol sales and prices, despite lower sugar sales and prices; net income for 4Q25 was R$105 million (down 83.3% year-over-year), and full-year net income was R$556.7 million (down 62.3%), impacted by fire disruptions and the end of Copersucar warrant receipts.

• Adjusted EBITDA for 4Q25 was R$771.4 million (margin 44.4%, down 33.2% year-over-year); for 12M25, R$3.45 billion (margin 47.9%, up 12.2%), supported by tax credits and ethanol performance.

• Financial statements for the year ended March 31, 2025, were audited and present a fair view in accordance with Brazilian and IFRS standards.

• Maintained financial discipline, completed share repurchase programs, and advanced sustainability initiatives, including nearing completion of a biomethane plant.

• Operations are subject to seasonal trends, climate risks, and geopolitical factors impacting costs and revenues.

Financial highlights

• 4Q25 net revenue: R$1.74 billion (-28.2% year-over-year), mainly due to lower ethanol (-33.6%) and sugar sales (-46.4% volume, -4.7% price); 12M25 net revenue: R$7.20 billion (+4.0% year-over-year), with ethanol revenue up 19.2% and sugar revenue down 9.8%.

• Adjusted EBIT for 4Q25: R$252.3 million (-45.9% year-over-year, margin 14.5%); 12M25: R$1.57 billion (+27.8%, margin 21.8%).

• Cash income in 4Q25: R$140.5 million (-24.7% year-over-year); 12M25: R$772.1 million (-44.9%).

• Net debt at March 31, 2025: R$4.93 billion (+48.6% year-over-year), leverage at 1.43x Net Debt/Adjusted EBITDA LTM.

• Gross profit was R$1,785,302 thousand, with a gross margin of 24.9%.

Outlook and guidance

• 2025/26 guidance: sugarcane crushing projected at 22.6 million tons (+3.7% year-over-year), TRS production at 3.16 million tons (+1.8%), average TRS 139.9 kg/ton (-1.9%).

• Corn processing expected at 515,000 tons (+0.7%), ethanol production at 217,000 m³ (+2.0%), DDGS at 140,000 tons (+1.7%).

• Maintenance capex for 2025/26 estimated at R$2.0 billion (-1.0%), total capex at R$2.32 billion (-15.3%).

• Fire at Iracema Unit may reduce daily production capacity by up to 30% for the 2025/26 crop season; additional R$86 million will be invested in crop treatments.

• The company expects the impact of tax reform to be clarified after further regulation; no current effect on financials.