Jalles (JALL3) Posts Net Income of R$ 41.4 Million in 2Q27

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 201.4 million, versus R$ 408.0 million in 2Q26, with a margin of 59.9%. The settlement of sugar and currency hedges (protection against price and exchange rate fluctuations) totaled R$ 68.7 million, up 43.5%. With this effect, adjusted EBITDA after hedge reached R$ 270.1 million, with a margin of 80.3%, and adjusted EBIT after hedge was R$ 78.7 million, down 46.0%.

In the half year (6M27), the company posted a net loss of R$ 32.7 million, versus net income of R$ 5.0 million in 6M26. Net revenue was R$ 676.8 million, down 40.9%, and adjusted EBITDA after hedge totaled R$ 539.4 million, down 26.4% from R$ 732.8 million in 6M26, with a margin of 79.7% (64.0% in 6M26). Hedge settlement in the half year was R$ 180.8 million. Adjusted EBIT for the half year was R$ 145.4 million, down 15.7%. Cash earnings were R$ 70.1 million in the quarter and R$ 45.9 million in the half year, up 30.0% from R$ 35.3 million in 6M26.

Operationally, agricultural productivity rose 17.4% in the quarter, to 86.6 t/ha. Crushing in the half year was 6,385.8 thousand tons, up 4.5%, with a mix of 39.6% sugar and 60.4% ethanol (48.8% and 51.2% in 6M26). Sugar sales fell 30.5% and ethanol sales fell 27.8%. Production cost per ton of ATR (total recoverable sugar) fell 5.9% in the half year, to R$ 1,503.5. Ethanol inventory reached 200.2 thousand m³, up 79.5%.

On September 30, 2026, cash and investments totaled R$ 2,066.4 million, and net debt was R$ 2,005.7 million, a ratio of 2.0 times adjusted EBITDA for the last 12 months, versus 1.2 times a year earlier. Excluding finished goods inventories, net debt was R$ 1,259.5 million. Cash covers maturities through the 2030/31 crop, and the average debt term is 4.7 years. The company has 196.1 thousand tons of sugar fixed for the 2027/28 crop, at R$ 2,503 per ton.

Jalles approved its 2nd share buyback program of up to 4,000,000 shares, equivalent to 1.32% of total shares or 4.12% of free-float shares, with a term of 18 months, through May 2028.