Terra Santa Propriedades Agrícolas (LAND3) Q3 2025 earnings summary

Executive summary

• Focused on rural real estate, with revenue from land management and leasing contracts, mainly recognized linearly from September to August, and renegotiated every three years for operational efficiency and asset appreciation.

• Achieved 22.9% year-over-year growth in net revenue in 3Q25, totaling R$22.1 million, driven by higher soybean volumes from a renegotiated contract.

• General and administrative expenses fell by R$923k in the quarter and R$3.3 million in the nine-month period, reflecting ongoing cost reduction efforts.

• Reported a net loss of R$3.6 million for 9M25, mainly due to a provision for impairment on PIS/COFINS credits.

• Net debt reduced by 51.2% to R$44.2 million as of September 2025, with Net Debt/Adjusted EBITDA at 0.74x, well below covenant limits.

Financial highlights

• Net revenue in 3Q25 was R$22.1 million, up 22.9% year-over-year; 9M25 net revenue reached R$73.9 million, up 42.0%.

• Gross profit in 3Q25 was R$21.1 million, up 25.6% year-over-year, with a gross margin of 95.5%.

• Adjusted EBITDA in 3Q25 was R$12.6 million, up 23.4% year-over-year; 9M25 Adjusted EBITDA was R$51.9 million, up 65.6%.

• Net loss in 3Q25 was R$18.3 million versus a net profit of R$7.4 million in 3Q24, mainly due to a R$38 million provision for PIS/COFINS credits.

• Net loss for 9M25 was R$3.6 million, compared to a net profit of R$13.1 million in 9M24.

Outlook and guidance

• 33% of the 2025/26 soybean crop volume fixed at an average price of R$112.46/sc as of September 2025; remaining volume to be fixed by February 2026.

• Hedging strategies in place for 57% of 2025/26 and 10% of 2026/27 crops in USD, and 65% of 2025/26 crop in CBOT soybean prices.