Três Tentos Agroindustrial (TTEN3) Q1 2025 earnings summary

Executive summary

• Net operating revenue reached R$3.5 billion in 1Q25, up 30.6% year-over-year, with growth across all segments driven by record harvests and strong biofuels demand.

• Adjusted EBITDA surged 109.6% to R$288.9 million, with margin up 3.2 p.p. to 8.3%, and net income increased 23% to R$192.4 million.

• ROE was 20.1% and ROIC reached 21.6% in 1Q25.

• Expansion in Mato Grosso and new industry investments, including the first corn processing plant expected to start operations in early 2026, are on track.

• TentosCap received Central Bank approval to operate rural credit, reinforcing the financial vertical.

Financial highlights

• Adjusted gross profit rose 47.8% to R$635.5 million, with margin up 2.2 p.p. to 18.2%.

• Net financial result was positive at R$111.6 million, mainly due to mark-to-market gains on derivatives.

• Net debt stood at R$371.5 million, with leverage at 0.29x LTM EBITDA.

• Cash and cash equivalents at quarter-end were R$1,539.9 million.

• Adjusted net income (excluding FVA effects) was R$109.6 million, down 13.9% year-over-year, impacted by a higher effective tax rate.

Outlook and guidance

• Positive outlook for 2025, supported by record soybean and corn harvests and ongoing expansion in Mato Grosso.

• CapEx for the new maize ethanol plant in Porto Alegre do Norte is on schedule and within the R$1.16 billion forecast.

• Store expansion continues, aiming for 100 units by 2030; currently at 71 stores.

• Soybean processing capacity expected to reach 10,400 tons/day and biodiesel production targeted at 3,000 m³/day by end of 2025.

• TentosCap’s new rural credit operations and product launches are expected to further support growth.