SLC Agrícola (SLCE3) Q2 2026 earnings summary

Executive summary

• Net revenue reached R$2.18 billion in 2Q26, up 16.8% year-over-year, driven by higher sales volumes and improved prices for cotton, soybeans, corn, and cattle, setting new records for the quarter and semester.

• Gross profit rose 43.5% to R$941.2 million in 2Q26, with margin expanding 8.0 p.p. to 43.3%, mainly due to strong performance in cotton and soybeans.

• Net income for 2Q26 was R$245.1 million, a 75.3% increase year-over-year, with net margin up 3.8 p.p. to 11.3%.

• Planted area for the 2025/26 crop year increased 13.1% to 832,582 hectares, reflecting operational expansion and acquisitions.

• Record soybean yield of 4,146 kg/ha (+4.7% YoY); cotton yields also up significantly, while corn yields declined due to adverse weather.

Financial highlights

• 1H26 net revenue: R$4.44 billion (+6.0% YoY); gross profit: R$1.88 billion (+8.8% YoY); net income: R$481.2 million (-26.0% YoY).

• Adjusted EBITDA for 1H26: R$1.28 billion (-15.0% YoY); margin: 28.7%.

• Adjusted EBITDA for 2Q26 was R$580.6 million (+4.3% YoY), with margin at 26.7%.

• Free cash flow remained negative at R$-805.3 million in 2Q26, reflecting higher working capital needs and investments.

• Adjusted net debt rose to R$7.54 billion, with net debt/EBITDA at 3.09x (up from 1.97x at year-end 2025); 78% of debt is long-term.

Outlook and guidance

• High proportion of 2025/26 crop sales already hedged: 90.2% soybeans, 94.7% cotton, 54.1% corn.

• Hedged positions for 2026/27 crop year: 49.2% of soybean and 55% of cotton production.

• Fertilizer and crop protection purchases for 2026/27 largely secured: 100% phosphate, 90% potassium chloride, 70% nitrogen, 96% crop protection.

• Ongoing investments in irrigation and industrial capacity to support growth and climate resilience.

• Margins expected to improve in 2027 due to operational efficiency and cost management.