BrasilAgro Companhia Brasileira de Propriedades Agrícolas (AGRO3) Q2 2026 earnings summary

Executive summary

• Net revenue for the first six months of 2026 was R$470.3 million, with adjusted EBITDA at R$71.3 million and a net loss of R$61.8 million, mainly due to lower sugarcane contribution and higher financial costs, partially offset by strong grain and cotton performance and strategic inventory sales.

• Net sales revenue decreased 19% year-over-year, and net revenue dropped 27% compared to the same period last year, despite a 3% increase in net operating revenue.

• Operational efficiency improved through telemetrics and investments in land transformation and irrigation, aiming for margin recovery.

• Weather was irregular but manageable, with good crop development in key regions and a focus on technological advancements.

• The company published a Sustainability Report highlighting ESG progress.

Financial highlights

• Adjusted EBITDA for 6M26 was R$71.3 million, down 64% year-over-year, with an adjusted EBITDA margin of 14-15% and a net income margin of -13%.

• Net sales revenue for 6M26 was R$494.0 million, a 3% increase year-over-year, but total gross income dropped 94% to R$11.0 million due to the absence of farm sale gains and lower sugarcane performance.

• Receivables from farm sales totaled approximately R$120 million, with over 5.5 million sacks outstanding.

• Farm sales contributed R$129.3 million in revenue, but no farm sale gains were recorded in 6M26 compared to R$107.9 million in 6M25.

• Margins for soy remained around 27-29%, corn improved to 17%, and cotton margins were low at 6-8%.

Outlook and guidance

• The 2025/26 crop season is developing under more balanced conditions, supporting expectations of improved productivity and margin recovery in the second half.

• Planted area for 2025/26 is projected at 169,858 hectares, down 2% from the previous estimate, with reductions in soybean and second-crop bean acreage.

• Production estimates for 2025/26: soybeans 249,640 tons, corn 67,276 tons, and sugarcane 2.1 million tons.

• Not optimistic about short-term sugarcane and ethanol prices, but anticipate sector recovery in the next two to three cycles.

• Soy and corn sales strategies are focused on capturing premiums and managing volatility, with a significant portion of soy already sold at favorable prices.