BrasilAgro's Q3 2025 Earnings Call: Key Contradictions in Dividends, M&A Strategy, and Fertilizer Costs

Dividend and share repurchase policy, interest rates and M&A strategy, dividend distribution policies, land pricing and investment strategy, cost of fertilizers and impact on profitability are the key contradictions discussed in BrasilAgro's latest 2025Q3 earnings call.



Revenue and Profit Performance:
- BrasilAgro reported net revenue of R$870 million for the first nine months of 2025, with adjusted EBITDA at R$195 million.
- The company also reported a net income of R$76 million.
- The growth was driven by favorable pricing and volumes in sugarcane and corn, despite currency volatility and higher interest rates.

Crop and Production Variability:
- Soybean production experienced challenges with lower productivity in specific units, although some areas exceeded expectations.
- Corn production benefited from stable prices and higher sales due to increased ethanol production.
- The company emphasized the importance of strategically locking in prices and managing fertilizers, despite currency challenges.

Capital Allocation and Debt Management:
- BrasilAgro's adjusted net debt was R$779 million, with a cash position of R$105 million.
- The company is considering rethinking its budget and funding strategies due to higher interest rates.
- They are focusing on maintaining a balanced debt profile and leveraging favorable leasing opportunities, despite the high cost of capital.

Land Acquisitions and Regional Focus:
- The company is targeting regions like Maranhão and Piauí for land acquisitions, leveraging previous investments and expected commodity cycles.
- The strategy is based on fundamental economic factors, expecting a competitive market with low interest rates.
- This approach aims to capitalize on potential supply-demand imbalances and recovery in the cattle sector.