Terra Santa Propriedades Agrícolas (LAND3) Q1 2026 earnings summary

Executive summary

• Net revenue reached BRL22.5 million in 1Q26, stable compared to 1Q25, reflecting the resilience of the long-term rural lease model.

• EBITDA was BRL15.7 million, maintaining high profitability, while net profit was BRL8.3 million, down 15% year-over-year due to higher financial expenses.

• The business model ensures high cash flow predictability, supported by long-term contracts and hedging strategies.

• Shares traded at a 68% discount to NAV, with NAV at BRL2.7 billion (BRL27.76/share) and market cap at BRL840.1 million.

Financial highlights

• Net revenue: BRL22.5 million (+2.6% YoY); net lease revenue: BRL21.3 million (+16.4% YoY).

• Gross profit: BRL21.4 million (+3.0% YoY); gross margin: 95.3%.

• Operating expenses: BRL6.6 million (+24.4% YoY); G&A expenses decreased 7.8%.

• Net financial loss: BRL5.6 million (vs. BRL3.8 million in 1Q25), mainly due to higher financial expenses.

• Net profit: BRL8.3 million (-15% YoY); net margin: 36.6%.

• EBITDA: BRL15.7 million (-3.4% YoY); EBITDA margin: 69.8%.

• Adjusted EBITDA: BRL16.7 million (+7.9% YoY); adjusted margin: 74.0%.

Outlook and guidance

• 100% of 2025/26 soybean volume fixed at BRL108.85/bag; no volume fixed for 2026/27.

• Hedging covers 68% of USD exposure and 66% of soybean price for 2025/26; partial hedges for 2026/27.