What Brasilagro Cia Brasileira De Propriedades Agricolas (LND) Said on Its Q1 Earnings Call

Key Points

• BrasilAgro reported BRL 81 million in net income and BRL 95 million in adjusted EBITDA for the first quarter of its 2026–2027 harvest year. A farm sale contributed about BRL 51 million in net income and returned 26% in reais.
• The company plans to reduce short-term debt by BRL 150 million over the next six to eight months, partly using farm-sale receivables, while continuing to pay dividends. Net debt to EBITDA, including those receivables, was about 1.05 times.
• Planting was 68% complete across the company’s regions, and BrasilAgro had sold 57% of its expected soybean production. Management is being selective on land purchases, rejecting opportunities with estimated returns of only 4% to 4.5%.

Brasilagro Cia Brasileira De Propriedades Agricolas NYSE: LND reported net income of BRL 81 million and adjusted EBITDA of BRL 95 million for the first quarter of its 2026-2027 harvest year, with a farm sale contributing to earnings and helping reduce leverage.

CEO André Guillaumon said the transaction generated approximately BRL 51 million in net income and an internal rate of return of 26% in reais. The property was acquired in a 2021 transaction involving Agrifirma, he said.

Guillaumon said BrasilAgro would continue to pursue farm sales when it sees attractive terms. He described the land market as uneven, with sales in Mato Grosso difficult but transactions in Bahia supported by factors including irrigation.

Debt reduction and farm-sale proceeds

Chief Financial Officer and Investor Relations Officer Gustavo Lopez said the quarter included approximately BRL 50 million from farm sales and a positive BRL 37 million financial result. He attributed much of the financial result to measures taken to lock in farm-sale receivables as soybean prices rose.

Guillaumon said net debt to EBITDA, including farm-sale receivables, stood at approximately 1.05 times. Lopez said the company had approximately BRL 1 billion in debt and was comfortable with its leverage, but planned to reduce short-term debt by BRL 150 million over the next six to eight months, using some farm-sale receivables.

Lopez said BrasilAgro had previously favored using third-party capital for working capital when interest rates were lower, but no longer considered that structure as attractive given high rates. The company also wants to extend some debt maturities to three, four or five years, he said.

Guillaumon said BrasilAgro had prioritized debt reduction this year but would continue paying dividends. He said a payment was scheduled for Nov. 16.

Planting progress and crop outlook

Guillaumon said planting had progressed quickly in Mato Grosso, where roughly 93% to 94% of the company’s planned area had been planted as of the day before the call. Across the company’s regions, planting was 68% complete, with Maranhão further behind other areas, he said.

BrasilAgro had sold 57% of its future soybean production, according to Guillaumon. He said the company had also used favorable exchange ratios to purchase fertilizer and manage costs amid significant volatility.

Lopez said BrasilAgro had sold 54,000 tons of soybeans and still had approximately 25,000 tons to sell. The company had sold 70,000 tons of corn, with nearly 50,000 tons remaining for sale, he said. Corn results had not been as strong as in the prior year, although Lopez said proximity to industrial and ethanol customers could create sales opportunities.

For sugarcane, Lopez said prices had pressured margins, but productivity had been strong and he expected prices to recover. He also said the latest cotton harvest had produced good quality and productivity on a smaller area than the previous year. The company had not yet begun selling that crop but expected positive margins, supported by derivatives positions.

Guillaumon said Maranhão’s sugarcane operation harvested more than 210,000 tons in October, a monthly record for the operation. He added that some sugarcane in São Paulo could remain unharvested at the end of the season and be collected early in the next harvest period.

Land purchases and operating margins

Asked about acquisition opportunities, Guillaumon said potential purchases were appearing but some implied returns of only 4% to 4.5%, which he considered unattractive relative to the cost of capital. BrasilAgro would examine distressed situations and smaller properties, he said, but would buy only when returns justified the investment.

Guillaumon said he expected gross margins for farmers to recover as selling prices improved relative to production costs. However, he cautioned that the improvement might not be enough to offset financing costs for highly leveraged producers.

He also pointed to operating efficiencies from telemetry. BrasilAgro had mapped 81% of its operations with the technology and was targeting 90%, he said. Monitoring machinery use had reduced diesel consumption in planting and harvesting, while real-time alerts helped managers identify problems in the field.

About Brasilagro Cia Brasileira De Propriedades Agricolas (NYSE:LND)

BrasilAgro – Companhia Brasileira de Propriedades Agrícolas is an agricultural land company focused on acquiring, developing and operating rural properties. The company combines agricultural production with the improvement and, when appropriate, sale of farmland, seeking to create value through the development of underutilized properties.

Its operations include the cultivation of crops such as soybeans, corn, cotton and sugarcane, as well as cattle-raising activities and other agricultural operations.

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