Terra Santa Propriedades Agrícolas (LAND3) Q2 2025 earnings summary

Executive summary

• Operations focus on land management and leasing, with annual rent recognized linearly and renegotiated every three years.

• Q2 2025 saw significant revenue and profit growth, driven by higher soybean prices and renegotiated lease contracts, with net income of R$5.0 million versus a loss in Q2 2024 and EBITDA of R$9.9 million, up 52.6% year-over-year.

• Lease contract renegotiation increased annual remuneration from 17 to 20.5 soybean sacks per hectare, effective for 2024/25 to 2026/27, boosting future revenue streams.

• Net revenue for Q2 2025 reached R$29.9 million, up 68% year-over-year, mainly from lease receipts and contract renegotiation.

• Net income for Q2 2025 was R$5.0 million, with a semester total of R$14.7 million; EBITDA for the semester was R$26.2 million.

Financial highlights

• Consolidated net revenue for Q2 2025: R$29.9 million (up 68% YoY); semester: R$51.9 million.

• Gross profit was R$28.8 million, a 73.5% increase, with gross margin rising to 96.3%.

• Net income Q2 2025: R$5.0 million; semester: R$14.7 million (vs. R$5.7 million in H1 2024).

• EBITDA for Q2 2025 was R$9.9 million (up 52.6%), Adjusted EBITDA was R$23.9 million (up 125.8%), and semester EBITDA was R$26.2 million.

• Operating expenses Q2 2025: R$19.6 million, up 79% YoY, mainly due to a R$12.6 million provision for ICMS tax contingency.

Outlook and guidance

• Lease contract renegotiation secures higher annual remuneration for the next three crop years (2024/25, 2025/26, 2026/27).

• All 2024/25 soybean production volume was price-fixed at R$107.52/sc, fully hedged against price and FX volatility.

• No price fixing yet for the 2025/26 crop; 49% of FX and 39% of soybean price exposure already hedged.

• Management considers the company comfortably within its debt covenant (net debt/EBITDA Adjusted < 3x), currently at 0.47x.