In the 2026/27 crop year, São Martinho (SMTO3) posted net income of R$ 38.1 million in the first quarter (1Q27), down 39.3% compared to 1Q26, mainly reflecting the lower volume of products sold in the period, in line with the commercialization strategy for the current crop. Net revenue totaled R$ 1,529.8 million in 1Q27, a decrease of 17.6% compared to 1Q26.
The drop in net revenue stems from lower selling prices for sugar (-25.7%) and ethanol (-4.2%), in addition to a 23.2% decrease in the volume of ethanol sold, partially offset by a higher volume of sugar sold (+14.5%). Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$ 582.3 million in 1Q27, a decline of 27.7% compared to 1Q26, with an adjusted EBITDA margin of 38.1%, 5.3 percentage points below the level seen a year earlier, impacted by the lower volume of ATR sold and the decline in average sugar and ethanol prices, partially offset by lower costs in the period.
In the quarter, Financial Result (cash) was an expense of R$ 90.7 million, down 27.3% from 1Q26, explained mainly by higher financial income and cash balance, partially offset by an increase in financial expenses and gross debt. Considering non-cash items and results from real estate business, financial expense totaled R$ 172.2 million, a 27.6% decrease year over year.
On June 30, 2026, the company’s net debt reached R$ 5.2 billion, up 5.0% compared to March 2026, reflecting new borrowings aimed at working capital and recurring investments. In the same period, leverage, measured by Net Debt to Adjusted EBITDA for the last 12 months, stood at 1.59x.
On the operating side, São Martinho processed around 8.5 million tons of sugarcane in 1Q27, an increase of 3.9% compared to 1Q26, with a 7.0% rise in agricultural productivity and stable average ATR at 122.4 kg per ton of cane. The company produced approximately 424.8 thousand tons of sugar (-10.6% vs. 1Q26) and 354.6 thousand m³ of cane ethanol (+19.1%), in addition to 59.1 thousand m³ of corn ethanol (+4.3%). Total ATR produced reached 1,144.4 thousand tons (+4.3%).
