SLC Agrícola (SLCE3) Q4 2025 earnings summary

Executive summary

• Net revenue reached R$8.6 billion in 2025, up 23.7% year-over-year, driven by record sales volumes, improved yields in soybeans (+21.4%) and corn (+17.1%), and expanded planted area (+13.8%).

• Adjusted EBITDA rose 30.8% to R$2.66 billion, with a margin of 31.2%.

• Net income increased 17.3% to R$565.2 million, reflecting operational gains and higher commodity prices.

• Major acquisitions included Sierentz Agro Brasil, Fazenda Paladino, Fazenda Pamplona, and full control of SLC-MIT, boosting operational scale.

• Strategic partnership with BTG-managed funds accelerated irrigation projects and long-term value creation.

Financial highlights

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

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

• Capex totaled R$1.7 billion, with 68% for expansion, mainly land and irrigation.

• Adjusted net debt increased to R$5.24 billion, with Net Debt/EBITDA at 1.97x and 78% classified as long-term.

• Dividend payout reached R$400 million (5.6% yield), with a payout ratio of 76%.

Outlook and guidance

• Planted area for 2025/26 is forecast at 837,200 hectares, up 13.8% year-over-year, with continued focus on productivity and sustainable practices.

• 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 expected to grow 28.6% for soybeans and 8.3% for cotton in 2026.