SLC Agrícola (SLCE3) Q4 2025 earnings summary

Executive summary

• Net revenue for 2025 rose 23.7% year-over-year to BRL 8.6 billion, driven by record sales volumes and improved yields, especially in soybeans and corn.

• Adjusted EBITDA increased 30.8% to BRL 2.66 billion, with a margin of 31.2%.

• Net income grew 17.3% to BRL 565.2 million, reflecting operational gains and higher commodity prices.

• Strategic expansion included five M&A transactions, notably the acquisition of Sierentz Agro and land from Agrícola Xingu S.A.

• Maintained focus on sustainable growth, asset-light expansion, and long-term value creation.

Financial highlights

• Gross income rose 26.9% to BRL 2.93 billion in 2025; gross margin improved to 34.2%.

• Adjusted free cash flow was negative BRL 929.4 million, reflecting a robust investment cycle.

• Capex totaled BRL 1.7 billion, up 58.2%, mainly for land acquisition and infrastructure.

• Adjusted net debt increased to BRL 5.24 billion, with Net Debt/EBITDA at 1.97x.

• Dividend payout ratio was 76% of net income, with a dividend yield of 5.6%.

Outlook and guidance

• Planted area for 2025/26 is forecast at 837,200 hectares, up 13.8% year-over-year, aligned with asset-light strategy.

• Budgeted yields for 2025/26: cotton lint 2,066 kg/ha (+1.2%), soybeans 4,036 kg/ha (+1.5%), corn 7,738 kg/ha (+2.6%).

• High hedging levels: 75% soybeans, 81% cotton, 44% corn for 2025/2026.

• Early procurement of 100% phosphate fertilizers and 16% crop protection for 2026/2027.

• Seed sales projected to grow 8% year-over-year for both soybeans and cotton in 2026.