AGRO3: quote, dividends and indicators for BrasilAgro

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas is a Brazilian corporation founded on September 23, 2005, focused on investment and operations in agribusiness. Since its initial public offering in April 2006, when it began trading on B3 under the ticker AGRO3, the company has structured a business model that combines large-scale agricultural production with active management of a portfolio of farmland. Over the course of its history, it has acquired and developed properties in different regions of Brazil and in neighboring countries, going through successive cycles of land transformation, productive use, and sale of these rural assets.

BrasilAgro’s business model is based on two main economic drivers: the real estate appreciation of its farms and the operating results from agricultural production. The company focuses on acquiring rural properties with development potential, implementing infrastructure, technology, and intensive farming systems, and later selling these areas in whole or in part, capturing capital gains. In parallel, it operates directly in the production of grains, sugarcane, cotton, and livestock, and also leases out part of its land. AGRO3 shares on B3 represent an interest in a business that combines characteristics of rural real estate development with recurring agricultural activity, with strong exposure to the agricultural commodity cycle and the land market.

As of June 30, 2025, BrasilAgro’s portfolio totaled 252,796 hectares of total area, of which 188,727 hectares correspond to arable land, spread across properties located in Mato Grosso, Minas Gerais, Maranhão, Bahia, Piauí, and São Paulo, as well as assets in Paraguay and Bolivia. Since the beginning of its operations, the company has acquired 18 properties across seven Brazilian states and the two neighboring countries, totaling more than 320,000 hectares, and over time has sold various farms in whole or in part, recycling capital and adjusting the portfolio mix. The strategy also includes lease contracts, both as lessee – to expand cultivated area with lower need for capital tie-up – and as lessor, monetizing land at different stages of agricultural development.

From an operational standpoint, BrasilAgro operates across multiple production segments. In grains, it focuses mainly on soybeans, corn, and beans, with planting concentrated between September and December and harvesting through May, using crop rotation and second-crop practices to increase land productivity. In sugarcane, it cultivates thousands of hectares on different properties in Brazil and Bolivia, with an annual cutting cycle and an average useful life of sugarcane fields of around seven years, supplying raw material to partner sugar and ethanol mills. In cotton, it dedicates significant areas in the Central-West region, with harvesting generally between June and August and ginning carried out by third parties. Livestock is used as a diversification and climate risk mitigation component, with breeding in Bahia and pasture- and feedlot-based finishing in Paraguay, taking advantage of soil and climate conditions favorable to pasture.

The company’s revenue generation is diversified between the sale of agricultural products and real estate activity. In the fiscal year ended June 30, 2025, net revenue totaled approximately R$ 1.23 billion, composed mainly of sales of grains, sugarcane, cotton, livestock, leases, other operating income, and gains from the sale of farms. Grains accounted for about half of net operating revenue, while sugarcane represented slightly more than one-third, with smaller contributions from cotton, livestock, and leases. Farm sales and changes in the fair value of biological assets also contributed meaningfully to results, reinforcing the hybrid nature of the business between agricultural operations and land asset management. The customer base is concentrated in large trading houses and agribusiness companies, with three customers individually accounting for more than 10% of consolidated revenue in 2025, especially in the sugarcane and grains/cotton segments.

Geographically, BrasilAgro structures its portfolio to spread climate and market risks across regions and countries. In Brazil, its farms are distributed across different biomes and agricultural production zones, enabling staggered planting and harvesting seasons and the ability to seize different climate and logistics windows. In Paraguay, it maintains a large property geared towards grain and pasture production, with a cattle finishing system that benefits from local soil quality and forage. In Bolivia, it operates grain and sugarcane areas, with sugarcane supply contracts to local mills. Sales of agricultural production are directed to customers located in Brazil, Paraguay, and Bolivia, with a significant portion of soybeans, corn, and cotton destined for export through global trading houses, while part of the corn, cottonseed, and other by-products serves industrial and livestock customers in the domestic market.

Distribution of production is based essentially on road transportation, with intensive use of contracted logistics service providers. In soybeans and corn, most operations are carried out under FOB terms, in which trading houses are responsible for picking up the products at farms or warehouses, although the company also operates under CIF terms in certain contracts. In the sugarcane segment, BrasilAgro maintains long-term supply and rural partnership agreements with mills such as Brenco and Agro Serra, under which it delivers 100% of the production of certain farms, in arrangements that ensure regular crop off-take. In Bolivia, there are supply contracts with local sugar and ethanol mills with no minimum volume commitments, which provides production flexibility. In cotton, lint is mostly exported via trading houses, while cottonseed is sold for crushing or directly to livestock operations.

In regulatory and sustainability terms, BrasilAgro is subject to extensive Brazilian environmental legislation at the federal, state, and municipal levels, especially regarding licensing, use of water resources, erosion control, waste management, and maintenance of conservation areas. The company maintains legal reserves and permanent preservation areas in compliance with the Forest Code, with registrations in the Rural Environmental Registry (CAR) and degraded area recovery programs when necessary. It also monitors surface and groundwater extraction, adhering to water rights limits and conducting water quality analyses for human consumption. In Paraguay and Bolivia, it complies with similar local requirements regarding environmental licenses and conditions, with preservation of legal reserves where applicable. The adoption of corporate governance practices consistent with B3’s Novo Mercado and the listing of ADRs on the NYSE highlight a corporate structure focused on transparency, alignment with shareholders, and professional management of environmental and operational risk in agribusiness.

BrasilAgro’s governance structure reflects its presence in capital markets in Brazil and abroad. The company was the first agricultural producer to go public on B3’s Novo Mercado and also the first Brazilian agribusiness company to list ADRs on the New York Stock Exchange, which imposed high standards of disclosure, internal controls, and compliance. Since the IPO, share capital has undergone several increases through equity offerings and the exercise of warrants, resulting in dilution and the entry of new institutional investors. The board of directors and executive management are responsible for capital allocation decisions among land acquisitions, productivity investments, farm sales, and expansion via partnerships and leases, seeking to balance agricultural operating returns, real estate appreciation, and management of risks associated with climate, commodity prices, exchange rates, and the farmland market.