Três Tentos Agroindustrial (TTEN3) Q2 2025 earnings summary

Executive summary

• Net operating revenue rose 27.4% year-over-year to R$3.56 billion in 2Q25, with all segments contributing to growth and record profitability.

• Net income surged 127.2% year-over-year to R$330.8 million, with a net margin of 9.3%.

• Geographic diversification, especially expansion in Mato Grosso, mitigated climate impacts and drove record soybean harvests.

• Ongoing industrial and commercial expansions, including the Porto Alegre do Norte plant, are delivering positive results and supporting consistent earnings growth.

• Strategy continues to deliver consistent expansion, supported by increased canola area and higher volumes.

Financial highlights

• Adjusted gross profit increased 44.3% year-over-year to R$575.9 million, with a margin of 16.2% (+1.9 p.p.).

• Adjusted EBITDA rose 118.7% to R$182.4 million, with margin improvement to 5.1% (+2.1 p.p.).

• Net debt increased to R$1.81 billion, mainly due to investments in industrial expansion and working capital for soybean stock formation.

• Net debt/EBITDA (LTM) reached 1.47x.

• Cash and cash equivalents stood at R$1.69 billion at quarter-end.

Outlook and guidance

• Guidance for industrial expansion and Porto Alegre do Norte plant completion remains unchanged, with operations expected to begin in early 2026.

• Management remains confident in the business model, emphasizing continued geographic and product diversification.

• Positive outlook for biofuels and renewable energy, with B15 and E30 mandates supporting future demand.

• Plans to open new stores and expand industrial capacity through 2030.

• Guidance for store openings, grain origination, and soybean processing volumes maintained.