Terra Santa Propriedades Agrícolas (LAND3) Q1 2025 earnings summary

Executive summary

• Net income reached R$ 9.7 million in 1Q25, up 51.1% year-over-year, driven by higher lease revenues and positive hedge accounting results.

• EBITDA rose 23.7% to R$ 16.3 million, with adjusted EBITDA up 46% to R$ 15.4 million, reflecting operational improvements and non-recurring items.

• Lease contract renegotiation increased soybean payment to 20.5 sacks per hectare for 2024/25–2026/27, enhancing future revenue streams.

Financial highlights

• Net revenue grew 34.6% year-over-year to R$ 22.0 million, mainly from higher lease prices and full hedge accounting recognition.

• Gross profit increased 37.9% to R$ 20.8 million, with gross margin improving by 2.3 p.p. to 94.9%.

• Operating expenses rose 88.8% to R$ 5.3 million, mainly due to lower other operating income compared to 1Q24.

• Financial result was a net expense of R$ 3.8 million, 45.6% higher year-over-year, due to higher financial expenses and lower financial income.

Outlook and guidance

• All 2024/25 soybean crop volume was price-fixed at R$ 107.93/sc, securing revenue against commodity and FX volatility.

• New lease terms with SLC Agrícola will positively impact results for the next three crop years.