São Martinho (SMTO3) reported net income of R$ 50.9 million in 2Q27 (second quarter of the 2026/27 crop year), down 71.1% from 2Q26. The result reflects operational impacts, a non-cash effect from the remeasurement of lease and partnership contracts, mark-to-market of derivative contracts (SWAP) on long-term debt, and the recognition of tax credits on ethanol.
Net revenue totaled R$ 1,872.9 million in the quarter, up 7.7% over 2Q26, with a 46.8% higher volume sold in ATR (Total Recoverable Sugar) and a 117.2% increase in ethanol volume, partially offset by lower prices. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 760.9 million, down 6.9%, with a margin of 40.6%, versus 47.0% in 2Q26. Adjusted EBIT was R$ 95.1 million, and cash profit was R$ 39.9 million, down 80.9%.
In the first half (6M27), net income was R$ 89.1 million (-62.8%) and net revenue was R$ 3,402.8 million (-5.4%). Adjusted EBITDA totaled R$ 1,343.2 million (-17.2%), with a margin of 39.5%. Sugar revenue fell 27.0% in the half, due to prices 27.3% lower. Ethanol revenue rose 19.1% and includes approximately R$ 47.1 million from the Hydrous Ethanol Subsidy.
As of September 30, 2026, net debt was R$ 5.7 billion (+14.2% versus March 2026), with leverage of 1.75 times the Adjusted EBITDA of the last 12 months. The increase stems from new funding for investments, including the second phase of the corn ethanol plant, and from greater working capital needs.
The company revised its 2026/27 crop projections: crushing of 22.8 million tons of sugarcane (-3.5%) and ATR production of 3,016.0 thousand tons (-10.5%), because of rains. Total investment (Capex) is forecast at R$ 2.9 billion (-1.4%), of which R$ 1.9 billion is for maintenance (-2.0%).
