BrasilAgro Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) Q2 2026 Earnings call February 06, 2026 08:00 AM ET Company ParticipantsAna Paula Zerbinati - Head of Investor RelationsAndré Guillaumon - CEONone - TranslatorConference Call ParticipantsGuilherme Cutillo - AnalystNone - AnalystAna Paula ZerbinatiGood morning, everyone! [Foreign Language] Estamos aqui mais uma vez no call de divulgação de resultados da BrasilAgro. Hoje nós vamos estar apresentando os resultados do segundo trimestre do ano ...

BrasilAgro Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) Q2 2026 Earnings call February 06, 2026 08:00 AM ET Company ParticipantsAna Paula Zerbinati - Head of Investor RelationsAndré Guillaumon - CEONone - TranslatorAna Paula ZerbinatiGood morning, everyone! [Foriegn Language] Estamos aqui mais uma vez no call de divulgação de resultados da Brasil Agro. Hoje nós vamos estar apresentando os resultados do segundo trimestre do ano safra 2025-2026. Para quem nos acompanha em inglês, a apresentação e ...

BrasilAgro Companhia Brasileira de Propriedades Agrícolas (NYSE:LND) Q2 2026 Earnings call February 06, 2026 08:00 AM ET Speaker0Good morning, everyone! Estamos aqui mais uma vez no call de divulgação de resultados da Brasil Agro. Hoje nós vamos estar apresentando os resultados do segundo trimestre do ano safra 2025-2026. Para quem nos acompanha em inglês, a apresentação está disponível no chat. Agora eu vou passar a palavra pro André Guilhomon, nosso CEO, para dar início.Speaker1Muito obrigado, Ana Paula.S ...

2Q26 | 6M26 RESULTS PRESENTATION André Guillaumon CEO Gustavo Lopez CFO & IRO Ana Paula Zerbinati IR and Capital Market Head 6M26 EARNINGS CALL PORTUGUÊS Essa videoconferência será em português, com tradução simultânea para o inglês. Alteração de Idioma: para acessar a tradução simultânea, clique no botão Interpretation, na parte inferior direita da tela, e escolha o idioma "Inglês". Para fazer perguntas: clique no ícone Q&A e escreva seu nome e empresa ou levante a mão para entrar na fila. Ao ser anunciado ...

Core Viewpoint - BrasilAgro - Companhia Brasileira de Propriedades Agrícolas (LND) has experienced an almost 8% drop since the last coverage in September 2025, indicating potential investment considerations from an operational perspective [1]. Group 1: Company Analysis - BrasilAgro is evaluated from a long-only investment perspective, focusing on operational aspects and long-term earnings power rather than market-driven dynamics [1]. - The company is positioned in a competitive industry, and the analysis emphasizes the importance of understanding these competitive dynamics for potential investors [1]. Group 2: Investment Strategy - The investment strategy is characterized by a buy-and-hold approach, with most calls being holds, reflecting a cautious stance in a relatively bullish market [1]. - The articles aim to provide important information for future investors, promoting a healthy skepticism towards market trends [1].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - In Q1 2026, the company reported net revenue of BRL 286.6 million, an adjusted EBITDA of BRL 64 million, and a net loss of BRL 64.3 million, indicating a challenging quarter due to the end of the sugarcane harvest and the planting of new crops [2][22][23] - The operational EBITDA was BRL 64 million, similar to BRL 61.4 million in the same period last year, reflecting stable operational performance despite market volatility [23][24] Business Line Data and Key Metrics Changes - The sugarcane segment faced challenges with productivity, leading to a decrease in ATR levels from historical averages of 140 kg to around 135-136 kg, impacting overall revenue [22][24] - Soy sales were strong, with 56% of the current harvest sold at BRL 1,072, benefiting from strategic timing in the market [19][20] - Corn prices showed recovery, and the company has a significant volume of corn yet to be sold, indicating potential for future revenue [20][29] Market Data and Key Metrics Changes - The sugar market has been under pressure due to global production expectations, leading to lower prices [4][22] - The cotton market experienced a 14% price drop, while cattle raising showed signs of recovery due to export restrictions [4][11] - The company anticipates a good soy harvest in Brazil, with estimates ranging from 178 to 180 million tons [5][11] Company Strategy and Development Direction - The company is focusing on diversifying its operations across various commodities to mitigate risks associated with market volatility [10][12] - There is an emphasis on cost management and strategic timing in sales to optimize margins, particularly in the soy and corn segments [3][19] - The management is exploring opportunities in biofuels and crushing projects, indicating a long-term strategic shift towards sustainable practices [40][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatility in the agricultural market, particularly influenced by geopolitical factors affecting trade agreements [18][41] - There is optimism regarding the recovery of sugarcane productivity due to improved weather conditions and irrigation strategies [50][51] - The company remains committed to being a dividend-paying entity, reflecting confidence in its long-term financial health despite current challenges [34][35] Other Important Information - The company has a significant amount of receivables, over BRL 650 million, which will positively impact its balance sheet in the coming quarters [20][32] - The company is actively managing its debt levels, with a net debt of BRL 658 million and a focus on maintaining liquidity [32][34] Q&A Session Summary Question: What is the expected sugarcane harvest scenario? - Management expects about 10% more tons harvested by the end of the harvest year, but acknowledges that market estimates may be overly optimistic [36][37] Question: Can you provide an update on land purchase and sale scenarios? - The company is actively pursuing land sales and sees ongoing opportunities in regions like Bahia, despite challenges posed by interest rates [38][39] Question: What is the perspective on soy imports and market competitiveness? - The company anticipates favorable conditions for soy imports from China, which could enhance competitiveness in the market [40][41] Question: How does the company view the potential for biofuels and M&A? - Management sees biofuels as a long-term opportunity and is exploring M&A possibilities to enhance operational efficiency [40][42] Question: What are the expectations for sugarcane TCH recovery? - Management is optimistic about TCH recovery due to improved weather conditions and irrigation strategies, expecting significant improvements in the next harvest [47][50]

Financial Performance - Net Revenue decreased by 37% from R$457.208 million to R$286.644 million[34] - Adjusted EBITDA decreased by 62% from R$169.357 million to R$64.349 million[34] - Net Income decreased from a profit of R$97.457 million to a loss of R$64.275 million[34] - Revenues from Operations decreased by 7% from R$325.296 thousand to R$302.969 thousand[34] Commodity and Input Prices - Soybean prices increased by 2%[17] - Corn prices increased by 17%[17] - Cotton prices decreased by 14%[17] - Cattle Raising prices increased by 43%[17] - Ethanol prices increased by 20%[17] - Sugarcane prices decreased by 21%[17] - Average price of KCL BRASIL increased by 11%[18] - Average price of MAP BRASIL increased by 13%[18] - Average price of UREIA US GOLF increased by 8%[18] Planting Status - 34% of planting was completed as of November 10th[29]

Customer Concentration and Revenue Dependence - In the year ended June 30, 2025, three customers accounted for 52.9% of the company's revenue, with two responsible for 50% in the grain/cotton segment and one for 64% in the sugarcane segment[52]. - The company’s revenue is significantly dependent on a small number of customers, which may pose risks to financial stability[52]. - The company faces strong competition in a fragmented agricultural sector, increasing the bargaining power of a concentrated customer base, which may adversely affect business relationships and financial results[55]. Market and Economic Risks - The company faces significant risks related to the fluctuation of global commodity prices, which historically have shown substantial volatility[46]. - The ongoing geopolitical conflicts, including the situation in Ukraine and the Middle East, have led to increased volatility in commodity markets[54]. - A worldwide economic downturn could weaken demand for the company’s products, leading to lower prices and financial losses[79]. - Economic conditions in other countries, particularly the U.S., can negatively impact the Brazilian economy and investor sentiment towards Brazilian securities[145]. Regulatory and Legal Challenges - The Brazilian Law No. 5,709/71 imposes restrictions on foreign ownership of agricultural properties, potentially limiting the company's ability to acquire land[36]. - The company’s ability to implement its business strategy may be adversely affected by regulatory changes and limitations on foreign ownership[44]. - The company is subject to Brazilian corporate law, which may provide fewer protections for shareholders compared to U.S. regulations[156]. - As a foreign private issuer, the company is exempt from many U.S. corporate governance requirements, potentially limiting investor protections[157]. Environmental and Climate Risks - The company is exposed to adverse climate conditions that may affect agricultural production in Brazil, Bolivia, or Paraguay[39]. - Environmental regulations in Brazil impose strict liabilities on the company for any environmental damage caused by contractors, which could lead to significant costs and adversely affect financial condition[59]. - The company’s agricultural operations are subject to extensive environmental regulations, and non-compliance could result in fines and operational interruptions, impacting financial performance[61]. Operational and Supply Chain Risks - The company is highly dependent on third-party contractors for agricultural development, and any failure to secure quality service providers could negatively impact production efficiency and costs[57]. - The company relies on imports of fertilizers from Russia and neighboring countries, making it vulnerable to supply risks and potential shortages[104]. - The ongoing conflict between Russia and Ukraine has led to significant disruptions in global agriculture and fertilizer markets, causing price volatility and supply chain challenges[105]. Financial Performance and Growth Strategy - As of June 30, 2025, net revenue was R$877.4 million, an increase from R$771.1 million in the previous year, representing a growth of approximately 13.8%[182]. - The company’s growth strategy relies on acquiring underdeveloped agricultural properties and applying modern agricultural technologies; failure to innovate could adversely affect competitiveness and financial results[63]. - The estimated fair market value of agricultural properties as of June 30, 2025, was R$3,615 million, with significant appreciation rates for individual farms, such as Jatobá Farm at 2557%[178]. Currency and Inflation Risks - Fluctuations in the value of the Brazilian real against the U.S. dollar could adversely affect export revenue and operational costs, impacting financial results[80]. - In 2023, the Brazilian real appreciated by 7.2% against the U.S. dollar, with an exchange rate of R$4.8413 per USD on December 31, 2023[82]. - In 2024, the real depreciated by 21.8% against the U.S. dollar, resulting in an exchange rate of R$6.1923 per USD on December 31, 2024[82]. - The SELIC interest rate was 15% per year as of June 30, 2025, with inflation rates of 3.18% in 2023 and 6.54% in 2024[142]. Strategic Initiatives and Investments - The company has acquired 18 agricultural properties across seven Brazilian states, totaling 320,990 hectares, with 214,920 hectares being arable[168]. - The company plans to continue investing in agricultural properties in Brazil, Bolivia, and Paraguay, applying for financing with government development banks[170]. - The company is considering expanding its operations into other countries in and outside Latin America, but such expansion carries significant economic, legal, and political risks[118]. Challenges in Compliance and Governance - The company may face challenges in implementing IFRS S1 and IFRS S2 related to sustainability disclosures, which could result in incomplete emissions inventories and increased compliance costs[133][135]. - The company is subject to evolving data protection laws, such as Brazil's LGPD, which could result in significant administrative and monetary sanctions if compliance is not met[124][126]. - Cybersecurity incidents pose a risk to the company's operations, as past incidents have disrupted systems and could lead to reputational damage and operational challenges[129][130]. Agricultural Production and Sales - The company planted 102,043 hectares of grains during the 2024/2025 crop year, with grains accounting for 49.2% of operating net revenue[186]. - Net revenue from the sale of sugarcane accounted for 36.7% of total net revenue for the year ended June 30, 2025, up from 30.7% in the previous year[195]. - Livestock sales contributed 2.9% of net revenue for the year ended June 30, 2025, down from 3.8% in the previous year[196].

Group 1 - The investment strategy focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective [1] - The approach does not prioritize market-driven dynamics or future price action, instead emphasizing long-term earnings power and competitive dynamics [1] - Most recommendations will be holds, indicating a cautious approach to market conditions, with only a small fraction of companies deemed suitable for purchase at any time [1] Group 2 - The articles aim to provide important information for future investors and introduce skepticism in a generally bullish market [1] - There is a clear distinction made between the author's opinions and professional investment advice, emphasizing the need for readers to conduct their own due diligence [2][3]