Cosan (CSAN3) Q4 2025 earnings summary

Executive summary

• Managed EBITDA for Q4 2025 was R$7.8 billion, and full-year managed EBITDA was R$26.5 billion, both declining from the previous year, mainly due to Raízen and Radar performance.

• Adjusted net loss for Q4 was R$713 million, with a full-year adjusted net loss of R$4.0 billion, mainly from lower equity income, especially at Raízen; reported net loss for Q4 was R$5.8 billion and R$9.7 billion for the year, reflecting significant one-time effects.

• Cash received from dividends and interest on equity was R$479 million in Q4 and R$2.6 billion for the year, down from 2024 due to absence of Moove dividends and lower Compass contribution.

• Ended 2025 amid a challenging macroeconomic environment, focusing on capital structure strengthening, leverage reduction, and organizational simplification.

• Completed capitalization, welcomed new strategic shareholders, and executed debt prepayments of R$6.2 billion at the start of 2026.

Financial highlights

• Expanded net debt decreased to R$9.8 billion at year-end, a reduction of nearly R$14 billion year-over-year and 46% sequentially, driven by capital injection and asset sales.

• DSCR closed the year at 0.9x, reflecting high financial expenses and lower dividends.

• Average cost of debt at quarter end was CDI + 0.97%, with average maturity stable at 5.8 years.

• Year-end cash position was R$16.0 billion.

• Lost time injury frequency improved to 0.21 from 0.34 in Q3 2025.

Outlook and guidance

• Focus remains on deleveraging the holding company to zero debt, with no set timeline but intent to optimize asset sales for value.

• Ongoing commitment to efficiency gains at the holding company and gradual recovery of Moove's profitability to historical levels in 2026.

• Compass plans a secondary equity offering to support debt reduction.

• Forward-looking statements are subject to risks including economic, political, and regulatory uncertainties in Brazil.