Três Tentos Agroindustrial (TTEN3) Q1 2025 earnings summary

Executive summary

• Net operating revenue reached BRL 3.5 billion in 1Q25, up 30.6% year-over-year, with growth across all segments driven by record harvests and strong biofuels demand.

• Adjusted EBITDA surged 109.6% to BRL 288.9 million, with margin up 3.2 p.p. to 8.3%, and net income increased 23% to BRL 192.4 million.

• Expansion in the Midwest and Mato Grosso, along with industrial investments and new store openings, are progressing as planned.

• TentosCap received Central Bank approval to operate rural credit, reinforcing the financial vertical and supporting rural producers.

• Performance was supported by robust demand in the biofuel sector and positive market conditions.

Financial highlights

• Adjusted gross profit rose 47.8% to BRL 635.5 million, with margin up 2.2 p.p. to 18.2%.

• Adjusted EBITDA margin improved to 8.3% from 5.1% in 1Q24.

• Net debt at quarter-end was BRL 371.5 million, with net debt/EBITDA at 0.29x, reflecting low leverage.

• ROIC increased by 3.3 p.p. to 21.6% year-over-year.

• Cash and equivalents stood at BRL 1,539.9 million at March 2025.

Outlook and guidance

• CapEx for the new maize ethanol plant in Porto Alegre do Norte is on schedule and within the BRL 1.16 billion forecast.

• Store network expanded to 71, targeting 100 by 2030, with ongoing industrial and capacity expansions.

• Soybean processing capacity expected to reach 10,400 tons/day and biodiesel production 3,000 m³/day by end of 2025.

• TentosCap’s rural credit operations and new product launches are expected to support future growth.

• Optimism for record-breaking harvests in Mato Grosso and a strong 2025-2026 crop outlook.