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SÃO MARTINHO REPORTS CASH EARNINGS OF R$157 MILLION IN 1Q26

Company releases financial results for the first quarter of the 2025/2026 harvest year (1Q26)

São Paulo, August 11, 2025 – São Martinho, one of the world’s largest sugar and ethanol producers, announced its results for the first quarter of the 2025/2026 harvest year, highlighting Cash Earnings of R$157.0 million for the period.

Adjusted EBITDA reached R$805.0 million in 1Q26 (+19.7% vs. 1Q25), with a margin of 43.3% (+2.7 p.p.). The quarterly performance mainly reflects higher ethanol prices and sales volumes, partially offset by lower sugar prices and quantities sold in the period.

Adjusted EBIT totaled R$331.1 million in 1Q26 (+7.6%), with a margin of 17.8%. Net Income reached R$62.8 million in the quarter, a 40.9% decrease compared to 1Q25, reflecting changes in the fair value of biological assets and the timing of Interest on Equity (JCP) payments, which occurred in the second quarter of the current harvest year, versus the first quarter in the 2024/25 harvest.

The Leverage Ratio stood at 1.36x Net Debt / Adjusted EBITDA (LTM) at the end of 1Q26. As of June 30, 2025, sugar price hedges for the 2025/26 harvest totaled approximately 711 thousand tons, at an average price of ~R$2,529/ton.

Regarding operational results, during the first quarter of the 2025/26 harvest year, São Martinho processed approximately 8.2 million tons of sugarcane, a 7.6% decrease compared to the same period of the previous harvest. This decline reflects lower agricultural productivity (-11.7% tons per hectare vs. 1Q25), mainly due to the water deficit recorded in February and March 2025, which impacted crop development.

In 1Q26, sugarcane operations produced approximately 475.1 thousand tons of sugar (-11.3% vs. 1Q25) and 297.8 thousand cubic meters of ethanol (-13.1%). Corn processing added 56.7 thousand cubic meters of ethanol (+11.6%), 38 thousand tons of DDGS (+18.8%), and 1.9 thousand tons of corn oil (+6.9%).

The combined sugarcane and corn operations produced a total of 1,097.4 thousand tons of TRS (Total Recoverable Sugar) (-10.9% vs. 1Q25), of which 998.4 thousand tons came from sugarcane crushing (-12.6% vs. 1Q25). The average TRS decreased 5.5% due to the water deficit during the cane maturation period.