On Friday, August 14, 2026, Jalles Machado (JALL3) released its results for the first quarter of the 2026/27 crop year (1Q27). The company reported net revenue of R$ 340.4 million, down 32.6% compared to 1Q26, adjusted EBITDA with hedge (adjusted EBITDA includes the effects of the settlement of sugar and FX hedge operations) of R$ 269.4 million, and a net loss of R$ 74.1 million.
Adjusted EBITDA, excluding hedge effects, totaled R$ 157.2 million in 1Q27, a 41.7% decline from the R$ 269.6 million in 1Q26, with an adjusted EBITDA margin of 46.2%. Including the settlement of sugar and FX hedge instruments, which amounted to R$ 112.2 million in the quarter versus R$ 7.4 million a year earlier, adjusted EBITDA with hedge reached R$ 269.4 million, a 2.8% year-over-year drop and a margin of 79.1%.
On the operational front, Jalles Machado crushed 3,129.1 thousand tons of sugarcane in 1Q27, up 10.1% compared to 1Q26, with average yield of 89.6 tons per hectare. The production mix was more focused on ethanol, which accounted for 67.7% of total production, resulting in 148.8 thousand m³ of ethanol produced, a 44.5% year-over-year increase, while sugar production fell 24.5% to 114.8 thousand tons.
The company ended 1Q27 with total ATR inventory of 226.9 thousand tons, up 22.3% from the same period in the previous crop year, equivalent to R$ 411.9 million in book value. Ethanol inventory reached 81.2 thousand m³, an 86% increase, in line with the strategy of building inventories for sale throughout the crop year and the off-season, while sugar inventory fell 19.5% to 85.3 thousand tons.
On June 30, 2026, Jalles Machado’s cash and financial investments totaled R$ 1,640.3 million, an 8.8% increase compared to 1Q26. Gross debt came to R$ 3,532.2 million and net debt was R$ 1,891.9 million, 2.3% higher than a year earlier, resulting in a net debt/adjusted EBITDA ratio for the last 12 months of 1.6x.
