This article first appeared on GuruFocus .
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Net Revenue:BRL8.6 billion.
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Adjusted EBITDA:BRL2.6 billion, with a margin of 31.2%.
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Net Income:BRL565.2 million, representing growth of 17.3%.
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Cash Generation:Negative BRL929.4 million.
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Adjusted Net Debt:BRL5.2 billion, with a leverage ratio of 1.97x.
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Long-term Debt:78% of total debt, with an average maturity of 1,168 days.
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Expansion CapEx:BRL1.2 billion, representing 68% of total capital expenditure.
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Maintenance CapEx:BRL556 million, representing 32% of total capital expenditure.
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Seed Distribution:61,401 big bags, up 12.6% year-over-year.
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Dividend Distribution:BRL400 million, with a dividend yield of 5.6% and a payout of 76%.
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Planted Area Expansion:14%, totaling 837,000 hectares.
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Hedging Position:75% of soybean, 81% of cotton, and 44% of corn production hedged.
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Irrigation Expansion:Potential to expand from 19,000 to 53,000 hectares.
Release Date: March 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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SLC Agricola SA ( SLCJY ) achieved a historical export record in 2025 with 369,000 tons of cotton exported, making it the largest exporter in Brazil.
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The company reported a net revenue of BRL8.6 billion for the year, driven by record sales and strong productivity recovery, particularly in soybeans and corn.
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SLC Agricola SA maintained a controlled leverage with a net debt to adjusted EBITDA ratio of 1.97x, highlighting financial discipline.
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The company expanded its planted area by 14%, reaching 837,000 hectares, in line with its asset-light strategy.
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SLC Agricola SA received broad recognition for its ESG practices, including awards such as the Sustainable Farm Award and the Brazilian GHG Protocol Gold Seal.
Negative Points
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Cash generation for the period was negative BRL929.4 million, reflecting the investment cycle.
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The cotton market faced a challenging pricing environment due to a slight global surplus and sluggish demand.
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Soybean prices experienced significant volatility, influenced by the South American harvest and US crop expectations.
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The company recorded an increase in fixed assets related to acquisitions, which could impact future cash flows.
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Fertilizer and oil price increases due to geopolitical tensions could affect production costs and margins.
Q & A Highlights
Q: How does the Middle East conflict impact fertilizer and grain prices, and what is the outlook for cotton given the crisis? A: (Aurelio Pavinato, CEO) High oil prices from the conflict positively impact agricultural commodities like soybeans and corn due to their role in biofuels. Cotton demand may be sluggish, but rising polyester prices due to oil increases could support cotton prices. The conflict's impact on nitrogen fertilizer is minimal, as global exports from the region are small. The Northern Hemisphere will feel short-term effects, but overall, the situation is expected to be positive for agricultural commodities.
Q: What is the outlook for cotton prices given current supply-demand dynamics and the impact of polyester prices? A: (Aurelio Pavinato, CEO) Cotton demand and production have been stable, with prices previously affected by competition with polyester. As polyester prices rise, cotton prices are expected to stabilize. Reduced planting in major cotton-producing countries due to low prices has tightened supply, potentially supporting future price increases.
Q: How will the current fertilizer situation affect the American crop, and what is the impact of diesel prices on SLC Agricola's costs? A: (Aurelio Pavinato, CEO) Fertilizer costs in the U.S. are 50% higher than historical averages, likely leading to increased soybean planting and reduced corn areas. Diesel represents 3-4% of production costs, and while international prices are rising, the impact on SLC Agricola is mitigated by contracts with distributors and the appreciating local currency.
Q: What are SLC Agricola's plans for capital allocation given its current leverage and expansion projects? A: (Ivo Brum, CFO) The company aims to reduce leverage while continuing to expand its planted area. Opportunities for growth will be evaluated with a focus on maintaining leverage levels. The company has already procured 100% of fertilizers for the next crop year, with a 9% cost increase from the previous year.
Q: How does SLC Agricola view the potential for corn ethanol growth in Brazil, and what is its involvement in this market? A: (Aurelio Pavinato, CEO) SLC Agricola supplies over half of its corn production to ethanol production, benefiting from predictable pricing and demand. The company is a major supplier in regions with ethanol mills, and the growing ethanol market supports corn's role as a stable and profitable crop.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
