SLC Agrícola (SLCE3) Q3 2025 earnings summary

Executive summary

• Net revenue for 9M25 rose 27.1% year-over-year to R$6.3 billion, with 3Q25 net revenue up 27.9% to R$2.1 billion, driven by strong soybean and corn yields and operational expansion.

• Adjusted EBITDA for 9M25 was R$2.03 billion (margin 32.3%), with 3Q25 at R$531 million (25.5% margin), both record highs.

• Net income for 9M25 reached R$636 million, up 19.3% year-over-year; 3Q25 net loss was R$14.5 million, mainly due to non-recurring items.

• A landmark partnership with BTG Pactual-managed funds and FIPS was announced to monetize farmland, accelerate irrigation, and establish long-term agricultural partnerships, with a R$1.034 billion investment.

• The quarter included the consolidation of Sierentz Agro Brasil Ltda. and recognition for sustainability leadership.

Financial highlights

• Year-to-date revenue reached R$6.3 billion, up 27% year-over-year, with record highs in both quarterly and nine-month periods.

• Adjusted free cash flow for 3Q25 was R$567 million, up 284.4% year-over-year, but 9M25 free cash flow was negative R$1.48 billion due to strategic investments.

• Adjusted net debt increased to R$6.2 billion in 3Q25 from R$3.67 billion in 4Q24, mainly due to investments.

• Net debt/adjusted EBITDA ratio closed at 2.34x.

• Gross margin for 9M25 was 37.5%, up 1.9 p.p. year-over-year.

Outlook and guidance

• Planted area for 2025/26 is projected at 836,000 hectares, up 13.6% from the previous year, with higher expected yields for all major crops.

• Cotton, soybean, and corn areas are expected to grow by 11.1%, 14.2%, and 29.3%, respectively.

• Budgeted cost per hectare for 2025/26 is R$7,082, up 9.7% from 2024/25, mainly due to higher fertilizer and crop protection costs.

• Nearly 100% of key crop inputs for 2025/26 have been secured, and significant progress has been made in hedging commodity prices and FX exposure.

• Seed sales to third parties and internal use projected at 1.8 million bags, up 28% year-over-year.