Jalles Machado (JALL3) Q4 2025 earnings summary

Executive summary

• Achieved record gross revenues of R$2.64 billion for 2024/25, up 19.8% year-over-year, driven by higher sugar and ethanol sales volumes and favorable prices.

• Adjusted EBIT rose 131.6% to R$419 million, and Adjusted EBITDA increased 22.7% to R$1,481 million, with a 63.3% margin.

• Net income for the year was a loss of R$55.9 million, impacted by non-cash MTM hedge losses and higher financial expenses.

• Completed major investment cycle, shifting focus to asset optimization, productivity, and cost control for 2025/26.

• Strategic investments included the Santa Vitória sugar factory and a new biomethane project, supporting diversification and clean energy.

Financial highlights

• Net revenues for 2024/25 were R$2,337.9 million, up 22.4% year-over-year.

• Adjusted EBITDA increased 17.9% to R$1,207.3 million, with margin up 0.1 p.p.

• Adjusted EBIT margin rose to 18% from 9.5% last year; adjusted EBITDA margin reached 63.3%.

• Net debt increased 10.7% to R$1,734.9 million; net debt/EBITDA LTM improved to 1.2x.

• Free cash flow rose sharply to R$242.1 million from R$20.5 million in the prior year.

Outlook and guidance

• 2025/26 sugarcane crushing expected at 7.94 million tons, with productivity (TCH) slightly down 1.8%.

• Sugar mix projected to increase to 54.0%, ethanol share to decrease to 46.0%.

• Capex guidance for 2025/26 is R$746.7 million, focused on agricultural infrastructure and irrigation.

• Strategic focus on asset optimization, productivity, and sustainable growth.

• Cost control and automation initiatives aim to keep unit costs stable despite inflationary pressures.