Brasilagro Cia Brasileira De Propriedades Agricolas Q4 Earnings Call Highlights

BrasilAgro’s net loss narrowed to BRL 90 million for fiscal 2025/2026 from BRL 138 million, while revenue reached BRL 926 million and adjusted EBITDA totaled BRL 100 million. Sugarcane and cotton weighed on results, with weather and operational disruptions reducing sugarcane volumes and EBITDA by nearly BRL 60 million. Stronger soybean and corn productivity partially offset the weakness. Management is prioritizing debt reduction and selective land sales, supported by BRL 500 million in receivables, while planning to distribute approximately $0.30 per share in dividends and pursue improved margins in the next harvest.

Brasulagro Cia Brasileira De Propriedades Agricolas reported a net loss of BRL 90 million for its 2025/2026 harvest year ended June 30, 2026, compared with a BRL 138 million loss in the prior-year period, as weaker sugarcane and cotton results offset stronger grain production. The company recorded BRL 926 million in net revenue and BRL 100 million in adjusted EBITDA for the year, Chief Executive Officer André Guillaumon said. Management characterized the period as challenging amid commodity, currency, interest-rate and geopolitical volatility, but said productivity gains and land-development activities positioned the company for improved results in the coming cycle.

Sugarcane and cotton weighed on results Chief Financial Officer and Investor Relations Officer Gustavo Javier Lopez said sugarcane was the principal factor behind the weaker operating performance. The company sold approximately 650,000 fewer tons of sugarcane than in the previous year, including roughly 300,000 tons affected by rain-related delays and another 300,000 to 350,000 tons affected by frost, operational issues and wildfires. Lopez said the lower volume limited the company’s ability to dilute fixed cultivation costs and reduced sugarcane EBITDA by nearly BRL 60 million. Sugarcane historically generated contribution margins of about 27% for the company, he said, but margins declined during the year as production fell. Cotton also faced quality and productivity issues in the prior harvest, leading BrasilAgro to reduce planted area and take a more conservative approach toward the crop. Management cited cotton’s high capital requirements, elevated interest rates and potential El Niño-related climate risks as reasons for greater caution. Guillaumon said the company reduced off-season cotton acreage while increasing productivity by nearly 50% year over year in its current crop. He also pointed to a recent rebound in cotton prices, saying prices had risen from roughly 65-68 to nearly 90 in recent days.

Grains posted productivity gains Grain operations provided an offset to the sugarcane and cotton pressures. Guillaumon said soybean production increased 19%, driven primarily by productivity gains, while corn production rose 30%. The company produced 416,000 tons, compared with 360,000 tons previously, according to the presentation. BrasulAgro also reduced bean acreage by 70% after determining that the crop did not justify capital allocation given its risk profile, while still increasing bean productivity by nearly 40%. Management said it has used data analysis, telemetry and artificial intelligence tools to identify lower-return areas and redirect acreage toward other uses, including corn, cover crops and, in some regions, cattle operations. Lopez said soybean and corn benefited from higher volumes, better margins and lower cost per ton. The company also expanded corn planting after identifying opportunities to sell to ethanol companies at more attractive margins.