Financial Data and Key Metrics Changes - The company reported a revenue of R$470 million and an adjusted EBITDA of R$71.3 million, with a loss of R$61.8 million for the semester, indicating a challenging period due to high incurred expenses and low asset classification [11][30][31] - The company experienced a significant reduction in sugarcane productivity, which was a major detractor from overall performance, with losses attributed to adverse weather conditions and operational issues [30][34][38] Business Line Data and Key Metrics Changes - Sugarcane production faced challenges due to frost and fire incidents, leading to lower maturity levels and productivity, with a drop from 140 kg of sugar per ton last year to 131-132 kg this year [22][38] - Cotton production was adjusted to focus on irrigated areas in Bahia, with a shift from high-cost production in volatile regions, aiming for higher productivity levels [46][48] Market Data and Key Metrics Changes - Brazil is expected to have a super harvest of soy, with stocks exceeding 50 million tons, impacting market prices and premium perspectives [12] - The company noted a favorable ratio for corn compared to soy, with corn prices benefiting from logistical changes in the ethanol market [13] Company Strategy and Development Direction - The company is focusing on reducing operational volatility and improving productivity through better resource allocation and technology implementation, including telemetrics [10][15] - There is a strategic emphasis on diversifying crop production to mitigate risks associated with commodity price fluctuations [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of sugarcane production in the next harvest, citing improvements in management practices and fertilizer application [50][54] - The company is cautious about pricing in the sugarcane and ethanol markets for the upcoming year but anticipates a potential recovery in the following cycles [53][54] Other Important Information - The company has a debt of R$886 million, with a net cash position of R$802 million, indicating a stable financial position despite the seasonal cash flow challenges [40][42] - The company is actively monitoring input costs and currency fluctuations to optimize operational efficiency and reduce expenses [16][17] Q&A Session Questions and Answers Question: Can you provide more information on the shift in productivity for cotton? - The company has reduced reliance on cotton in high-cost regions and is focusing on irrigated agriculture in Bahia to improve productivity [46][48] Question: What is the outlook for sugarcane recovery in the next harvest? - Management is optimistic about sugarcane recovery due to improved management practices and a focus on reducing the average age of plantations [50][54] Question: Is there a potential adjustment for the reduction of planted areas in Brazil? - The company acknowledges external factors affecting planted areas and believes that a more rational approach will emerge as external pressures are alleviated [62]

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 ...

Financial Data and Key Metrics Changes - The company reported a revenue of R$470 million and an adjusted EBITDA of R$71.3 million, with a loss of R$61.8 million for the first six months of the fiscal year 2025-2026 [12][33] - The previous year’s loss for the same period was R$77 million, indicating an improvement in financial performance despite ongoing challenges [33] Business Line Data and Key Metrics Changes - Sugarcane production faced significant challenges, resulting in a productivity drop to 970,000 tons compared to 1.3 million tons the previous year, primarily due to adverse weather conditions and operational issues [40][41] - Soy and corn showed positive performance, with soy contributing R$3.7 million and corn R$20 million to the overall results, while cotton also had a positive impact of R$9.9 million [36] Market Data and Key Metrics Changes - Brazil is experiencing a super harvest with soy stocks exceeding 50 million tons, leading to lower prices but also better premium perspectives for corn due to regional market dynamics [13][14] - The cattle market is recovering, with expectations of improved prices due to limited supply, while sugar prices have decreased from $0.22 to $0.15 per pound [15][24] Company Strategy and Development Direction - The company is focusing on diversifying its crop portfolio to mitigate risks and improve operational stability, with a strategic emphasis on irrigated agriculture for cotton production [26][50] - There is an ongoing effort to enhance productivity through technology implementation, such as telemetrics, to improve operational efficiency across all units [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of sugarcane production in the next harvest, citing improved management practices and fertilizer application as key factors [56][57] - The company anticipates challenges in pricing for sugarcane and ethanol in the near term but expects a potential recovery in the following cycles due to improved productivity and market conditions [56][62] Other Important Information - The company has a debt of R$886 million, with a net cash position of R$802 million, indicating a stable financial position despite the seasonal cash flow challenges [43][45] - The company is actively monitoring input costs and has achieved savings of about 7% to 8% on certain commodities through strategic purchasing [16][18] Q&A Session Questions and Answers Question: Can you provide more information on the shift in productivity for cotton guidance? - The company has reduced reliance on cotton in high-cost regions and is focusing on irrigated areas in Bahia to enhance productivity, with expected yields of 370-380 kg per hectare [48][50] Question: What is the outlook for sugarcane production in the next harvest? - Management is optimistic about sugarcane recovery due to improved management practices and accelerated plantation efforts, despite acknowledging challenges in the current market [51][56]

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]