BrasilAgro's Q2 2025: Unpacking Contradictions in M&A Strategies, Capital Allocation, and Fertilizer Purchases

These are the key contradictions discussed in BrasilAgro's latest 2025Q2 earnings call, specifically including: M&A strategies and strategic land sales, capital allocation strategies, fertilizer purchasing strategy, and share buyback policy:



Financial Performance:
- BrasilAgro reported a net revenue of R$644 million and an adjusted EBITDA of R$78 million for the first six months of the year.
- The main net income was affected by major variations in accounting due to stock and asset values, particularly influenced by currency fluctuations.

Soybean Market and Pricing:
- The company witnessed a 9% decrease in soybean prices from January '24 to January '25.
- This decline was due to a later planting start in the central Brazilian region and increased demand for native corn internally, which influenced export levels.

Climate and Cattle Stock Impact:
- The company experienced an important increment in cattle stock value, contributing positively to results.
- This was influenced by economic factors and a reversal in the cotton cycle due to the La Niña phenomenon, which affected planting and harvesting periods.

Ethanol Market Recovery:
- The ethanol market showed a positive recovery trend, with an increase in demand due to a shift in ethanol percentage in gasoline, which generated an additional demand of 1.5-1.6 billion liters.
- This recovery was also due to the main competitor for sugarcane, corn ethanol, facing higher costs.