SLC Agrícola (SLCE3) Q4 2025 earnings summary

Executive summary

• Net revenue reached R$8.6 billion in 2025, up 23.7% year-over-year, driven by record sales volumes and improved yields, especially in soybeans and corn, maintaining leadership in Brazil and global competitiveness despite challenging pricing environments.

• Adjusted EBITDA rose 30.8% to R$2.66 billion, with a margin of 31.2%, and net income increased 17.3% to R$565.2 million.

• Consistent execution of a sustainable growth strategy, with significant expansion in planted area and operational resilience amid volatile markets.

• Strategic expansion included five M&A transactions, notably the acquisition of Sierentz Agro Brasil Ltda. and land from Agrícola Xingu S.A.

• Free cash flow was negative at R$929.4 million, reflecting a robust investment cycle.

Financial highlights

• Gross income rose 26.9% to R$2.93 billion in 2025; gross margin improved to 34.2%.

• 4Q25 net revenue grew 15.0% year-over-year to R$2.27 billion.

• Adjusted net debt increased to R$5.24 billion, with Net Debt/EBITDA at 1.97x.

• Dividend payout reached R$641 million (5.6% yield), with a payout ratio of 76%.

• Capex totaled R$1.7 billion, up 58.2%, mainly for land acquisition and infrastructure.

Outlook and guidance

• Planted area for 2025/26 is forecast at 837,200 hectares, up 13.8% from the prior year, aligned with asset-light strategy.

• Budgeted yields for 2025/26: cotton lint 2,066 kg/ha (+1.2%), soybeans 4,036 kg/ha (+1.5%), corn 7,738 kg/ha (+2.6%).

• High hedging levels: 75% of soybean, 81% of cotton, and 44% of corn production already hedged for 2025/2026.

• Early procurement of 100% phosphate fertilizers and 16% crop protection for 2026/2027 to preserve margins.

• Expansion CAPEX for 2025 is R$342 million, mainly for irrigation projects.