São Martinho (SMTO3) reported net income of R$ 50.9 mn in 2Q27 (the second quarter of the 2026/27 crop year), down 71.1% from 2Q26, when profit was R$ 176.4 mn. Compared with 1Q27, profit rose 33.4%, from R$ 38.1 mn. The result reflects operational impacts, the non-cash effect of the remeasurement of lease and partnership agreements, the mark-to-market of long-term debt derivative contracts (SWAP) and the recognition of tax credits on ethanol.
Net revenue totaled R$ 1,872.9 mn in the quarter, up 7.7% from 2Q26 and 22.4% from 1Q27, with sales volume 46.8% higher in TRS (Total Recoverable Sugar) and a 117.2% increase in ethanol volume, partly offset by lower prices. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 760.9 mn, down 6.9%, with a margin of 40.6%, versus 47.0% in 2Q26. Adjusted EBIT was R$ 95.1 mn, and cash profit was R$ 39.9 mn, down 80.9%, versus R$ 209.1 mn in 2Q26.
In the first half (6M27), net income was R$ 89.1 mn (-62.8%) and net revenue was R$ 3,402.8 mn (-5.4%). Adjusted EBITDA totaled R$ 1,343.2 mn (-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 about R$ 47.1 mn from the Hydrated Ethanol Subsidy.
On September 30, 2026, net debt was R$ 5.7 bn (+14.2% versus March 2026), with leverage of 1.75 times the last-12-month Adjusted EBITDA, compared with 1.41 times in March. The increase stems from new borrowings for investments, including the second phase of the corn ethanol plant, and greater working capital needs.
The company revised its 2026/27 crop projections: crushing of 22.8 million tons of sugarcane (-3.5%) and TRS produced of 3,381.1 thousand tons (-9.5%), because of rain. Total planned investment (Capex) is R$ 2.9 bn (-1.4%), of which R$ 1.9 bn is for maintenance (-2.0%).
