Earnings release
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Earnings Release 1st Quarter 2026/27 CROP YEAR AUGUST 10 , 2026 São Martinho
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2 Executive Summary In BRL '000 Operating Highlights 1Q27 1Q26 Var%. Operational Data TRS Produced ('000 metric tons) 1,144.4 1,097.4 4.3% Sugarcane 1,041.4 998.4 4.3% Corn 103.0 99.0 4.1% Agricultural - Sugarcane Crushed Sugarcane (‘000 metric tons) 8,506.5 8,185.1 3.9% Own 5,680.3 5,414.6 4.9% Third Parties 2,826.2 2,770.5 2.0% Agricultural Yields (mt/ha) 86.6 81.0 7.0% Average TRS (kg/mt) 122.4 122.0 0.4% Corn Processing ('000 metric tons) 139.0 137.3 1.2% Production Data Sugar ('000 metric tons) 424.8 475.1 -10.6% Ethanol ('000 m³) 413.7 354.5 16.7% Sugarcane 354.6 297.8 19.1% Corn 59.1 56.7 4.3% Exported Cogeneration ('000 MWh) 303.9 306.4 -0.8% DDGS ('000 metric tons) 35.6 38.0 -6.1% Corn Oil ('000 metric tons) 2.3 1.9 20.2% Sugar - Ethanol Mix (Sugarcane) 43% - 57% 50% - 50% Sugar - Ethanol Mix (Consolidated) 39% - 61% 45% - 55% In the first quarter of the 2026/27 crop year, São Martinho processed approximately 8.5 million metric tons of sugarcane, a 3.9% increase compared with 1Q26. The performance mainly reflects the 7.0% increase in agricultural yields, driven by the normalizat ion of weather conditions during the inter -crop period, with average Total Recoverable Sugar (TRS) remaining stable (+0.4%) at 122.4 kg per metric ton of cane. In 1Q27, sugarcane operations produced approximately 424.8 thousand metric tons of sugar ( -10.6% vs. 1Q26) and 354.6 thousand cubic meters of ethanol (+19.1%), reflecting a more ethanol-oriented mix during the period. Corn processing added approximately 59.1 thousand cubic meters of ethanol (+4.3%), 35.6 thousand metric tons of DDGS (-6.1%), and 2.3 thousand metric tons of corn oil (+20.2%), in line with the production plan and the Guidance for the 2026/27 crop year. Considering both sugarcane operations and corn processing, TRS produced was 1,144.4 thousand metric tons (+4.3%). 1Q27 4Q26 1Q26 ∆ 1Q27/4Q26 ∆ 1Q27/1Q26 Net Revenue¹ 1,529,820 2,244,676 1,857,459 -31.8% -17.6% Adjusted EBITDA 582,274 1,094,433 805,025 -46.8% -27.7% Adjusted EBITDA Margin 38.1% 48.8% 43.3% -10.7 p.p. -5.3 p.p. Adjusted EBIT 121,756 500,959 331,103 -75.7% -63.2% Adjusted EBIT Margin 8.0% 22.3% 17.8% -14.4 p.p. -9.9 p.p. Profit 38,149 172,851 62,829 -77.9% -39.3% Cash Profit 9,592 338,531 157,026 -97.2% -93.9% Leverage (Net Debt / LTM Adj. EBITDA) 1.59 x 1.41 x 1.36 x 12.1% 16.9% 1 - Excludes the Hedge Accounting effect of foreign- denominated debt and PPA USC and includes Finance Income from Real Estate Development. Data do not include the IFRS 1 6 impacts. 1Q27 EARNINGS RELEASE HIGHLIGHTS SMTO3: BRL 15.70 per share Market Cap: BRL 5.21 billion *As of June 30, 2026 Earnings Conference Call August 11, 2026 To access the webcast: click here 3:00 p.m. Brasília time 2:00 p.m. New York time
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3 Net Revenue Breakdown In BRL ‘000 Net Revenue São Martinho's net revenue reached BRL 1,529.8 million in 1Q27, a 17.6% decrease compared with 1Q26, reflecting: i) lower selling prices for sugar ( -25.7%) and ethanol (-4.2%); ii) the reduction in ethanol sales ( -23.2%); iii) partially offset by the higher volume of sugar sold in the period (+14.5%). 1Q27 EARNINGS RELEASE CONSOLIDATED NET REVENUE
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4 + % The following charts present a breakdown of net revenue by product in 1Q27 compared with 2025/26 crop year. Sugar – Volume ('000 metric tons) and Average Price (BRL/mt) Net revenue from sugar sales amounted to BRL 683.6 million in 1Q27, a decrease of 15.0% compared with 1Q26, driven by the 25.7% decline in price, partially offset by the 14.5% increase in sales volume during the period. Ethanol – Volume ('000 m3) and Average Price (BRL/m3) Net revenue from ethanol sales totaled BRL 630.2 million in 1Q27, a decrease of 26.4% (vs. 1Q26), due to the lower selling price (-4.2%) and the 23.2% reduction in sales volume. The lower volume in the quarter reflects: i ) the sale, in 1Q26, of volumes produced throughout the 2024/25 crop year (“ending stocks”); and ii) the sales strategy for the biofuel in the 2026/27 crop year, with a greater concentration of volumes in the second half of the crop year. 301.8 346.1 33.8 38.1 335.5 384.3 2396.0 1779.1 - 400. 0 10 0. 0 60 0. 0 11 00. 0 16 00. 0 21 00. 0 26 00. 0 0. 0 20 0. 0 40 0. 0 60 0. 0 80 0. 0 10 00. 0 12 00. 0 14 00. 0 1Q26 1Q27 DM Volume EM Volume Average Price 14.5% -25.7% 226.0 143.7 4.3 24.0 62.3 57.0 292.6 224.7 2927.7 2804.7 - 400. 0 10 0. 0 60 0. 0 11 00. 0 16 00. 0 21 00. 0 26 00. 0 31 00. 0 0. 0 20 0. 0 40 0. 0 60 0. 0 80 0. 0 10 00. 0 12 00. 0 14 00. 0 1Q26 1Q27 Corn DM Volume Cane EM Volume Cane DM Volume Average Price -23.2% -4.2% 1Q27 EARNINGS RELEASE CONSOLIDATED NET REVENUE
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5 CBIOs - Volume (‘000 CBIOs) and Average Price (BRL/CBIO) In 1Q27, approximately 312.0 thousand Decarbonization Credits (CBIOs) were sold (+72.4% vs. 1Q26). The average gross price was approximately BRL 16.5/CBIO (net of taxes – PIS/Cofins, INSS, and income tax withheld at source at 15%), a 56.7% decrease over the comparable period. Cogeneration - Volume (‘000 MWh) and Average Price (BRL/MWh) Net revenue from cogeneration sales reached BRL 88.7 million in 1Q27, an increase of 5.3% compared with 1Q26, due to higher sales price (+6.8% vs. 1Q26), partially offset by the decline in traded volumes (-1.4% vs. 1Q26) in the spot market. 181.0 312.0 38.2 16.5 - 200. 0 - 150. 0 - 100. 0 - 50. 0 0. 0 50 . 0 10 0. 0 15 0. 0 0. 0 20 0. 0 40 0. 0 60 0. 0 80 0. 0 10 00. 0 12 00. 0 14 00. 0 16 00. 0 18 00. 0 20 00. 0 1Q26 1Q27 DM Volume Average Price 72.4% -56.7% 315.1 320.8 36.7 26.1 351.8 346.9 239.5 255.7 - 200. 0 - 150. 0 - 100. 0 - 50. 0 0. 0 50 . 0 10 0. 0 15 0. 0 20 0. 0 25 0. 0 30 0. 0 0. 0 20 0. 0 40 0. 0 60 0. 0 80 0. 0 10 00. 0 12 00. 0 14 00. 0 1Q26 1Q27 Spot Contracted Average Price -1.4% 6.8% 1Q27 EARNINGS RELEASE CONSOLIDATED NET REVENUE
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6 Yeast – Volume ('000 metric tons) and Average Price (BRL/mt) Net revenue from yeast sales totaled approximately BRL 24.9 million in 1Q27, a 21.2% increase compared with 1Q26. The performance reflects a 38.3% increase in sales volume, which reached 6.7 thousand metric tons, partially offset by a 12.4% decrease in the average price, to approximately BRL 3,743 per metric ton. DDGS - Volume (‘000 metric tons) and Average Price (BRL/mt) Net revenue from DDGS sales totaled BRL 43.2 million in 1Q27, a decrease of 3.2% compared with 1Q26, primarily driven by the lower selling price in the period (-3.0% vs. 1Q26), due to prevailing market conditions for the product, amid stable traded volumes. 36.9 36.8 1,209.2 1,173.2 - 1000 . 0 - 500. 0 0. 0 50 0. 0 10 00. 0 0. 0 10 . 0 20 . 0 30 . 0 40 . 0 50 . 0 60 . 0 70 . 0 80 . 0 90 . 0 10 0. 0 1Q26 1Q27 DM Volume Average Price -3.0% -0.2% 1Q27 EARNINGS RELEASE CONSOLIDATED NET REVENUE
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7 Cash Cost of Goods Sold (COGS) In BRL '000 Cash COGS totaled BRL 821.4 million in 1Q27, down 11.4% from 1Q26. This variation was due to i) the lower sales volume in the period, with a 7.6% reduction in TRS sold, mainly from sugarcane; and ii) the lower p rices of sugarcane-derived products and the consequent impact on Consecana. 1Q27 EARNINGS RELEASE CONSOLIDATED COSTS
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8 Cash Cost Breakdown In BRL '000 The breakdown of Cash Cost is presented below, for products resulting from the sugarcane operation, defined as follows: Total Cash Cost = COGS – Depreciation/Amortization + Var. in Fair Value of Biological Assets + Selling Expenses + General and Administrative Expenses + Sustaining Capex Compiling the information detailed in the previous sections, the variation in Operating Margin from sugar and ethanol produced from the sugarcane processing is shown below: 1Q27 Sugar Ethanol Sugar + Ethanol Cogen. Yeast Others Total Sugar Ethanol Sugar + Ethanol Cogen. Yeast Others Total Cost of Goods Sold (COGS) 633,058 432,028 1,065,086 35,908 8,884 25,676 1,135,555 527,077 720,141 1,247,218 29,211 7,455 16,115 1,300,000 (-) Depreciation and Amortization (254,283) (169,535) (423,818) (6,853) (2,164) (17,008) (449,844) (215,070) (230,836) (445,906) (4,370) (1,944) (9,082) (461,302) Var. Fair Value of Biological Assets 11,395 (17,233) (5,838) - - (1,138) (6,976) 45,173 (114,389) (69,216) - - 3,991 (65,225) Cash COGS 390,170 245,260 635,430 29,055 6,720 7,529 678,735 357,179 374,917 732,096 24,841 5,512 11,025 773,474 Selling Expenses 53,190 13,793 66,983 4,733 - 854 72,570 42,803 7,999 50,802 5,068 - 222 56,092 General and Administrative Expenses 45,027 31,719 76,746 11,015 1,488 1,524 90,772 37,252 41,395 78,647 10,564 1,023 1,623 91,858 (-) Depreciation and Amortization (2,337) (1,646) (3,983) (572) (77) - (4,632) (1,899) (2,110) (4,010) (539) (52) - (4,600) Operational Cash COGS 486,050 289,126 775,176 44,231 8,131 9,907 837,445 435,335 422,201 857,536 39,935 6,483 12,870 916,823 (+) Sustaining Capex 180,617 154,144 334,761 - - - 334,761 169,851 184,947 354,799 - - - 354,799 Total Cash COGS 666,667 443,270 1,109,937 44,231 8,131 9,907 1,172,206 605,187 607,148 1,212,334 39,935 6,483 12,870 1,271,622 Sold Volume¹ 384 168 684 347 7 336 230 740 352 5 Unit Cash Cost 1,735 2,644 1,622 128 1,220 1,804 2,637 1,638 114 1,346 Operational Margin (%) 2.5% 1.7% 50.1% 67.4% 24.7% 6.1% 52.6% 68.5% 1Q26 Average priceCash Cost By Product Operational Margin 1Q27 EARNINGS RELEASE SUGARCANE COSTS 1,803.6 1,734.9 2,396.0 1,779.1 - 500. 0 1, 000. 0 1, 500. 0 2, 000. 0 2, 500. 0 3, 000. 0 3, 500. 0 4, 000. 0 4, 500. 0 5, 000. 0 1Q26 1Q27 Sugar (BRL/mt) -9.3% Margin -22.2 p.p. -25.7% 24.7% 2.5% 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6
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9 Based on these assumptions, the Adjusted Operating Margin is detailed considering: i ) the segregation of the impacts of price variation by product in the composition of the Consecana price, considering them individually in the costs of sugar and ethanol; and ii) the Sustaining Capex planned for the 2026/27 crop year (according to the Guidance published on May 25, 2026), allocated proportionally to the sales volume (of approximately BRL 409.6 million in 1Q27). 1Q27 EARNINGS RELEASE SUGARCANE COSTS 2,888.7 2,765.5 2,830.9 2,713.1 500. 0 1, 000. 0 1, 500. 0 2, 000. 0 2, 500. 0 3, 000. 0 - 1, 000. 0 2, 000. 0 3, 000. 0 4, 000. 0 5, 000. 0 6, 000. 0 1Q26 1Q27 Ethanol (BRL/m³) -4.3% Margin + 0.1 p.p. -4.2% -2.0% -1.9% 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 Average priceCash Cost By Product Operational Margin
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10 Corn Operation Results In BRL '000 1Q27 4Q26 1Q26 ∆ 1Q27/4Q26 ∆ 1Q27/1Q26 Net Revenue 235,347 432,020 265,795 -45.5% -11.5% Ethanol 179,403 383,082 210,022 -53.2% -14.6% DDGS 43,217 36,262 44,627 19.2% -3.2% Corn Oil 11,734 10,520 9,571 11.5% 22.6% CBIOS 993 2,156 1,575 -54.0% -37.0% Total COGS (152,857) (244,548) (170,294) -37.5% -10.2% Corn Purchases (117,892) (203,994) (130,847) -42.2% -9.9% Manufacturing, SG&A and Other Expenses (34,965) (40,554) (39,447) -13.8% -11.4% EBITDA 82,489 187,471 95,500 n.m. -13.6% EBITDA Margin (%) 35.1% 43.4% 35.9% n.m. -0.9 p.p. (-) Depreciation/Amortization (6,054) (10,145) (8,045) n.m. -24.8% EBIT 76,436 177,326 87,455 n.m. -12.6% EBIT Margin (%) 32.5% 41.0% 32.9% n.m. -0.4 p.p. During 1Q27, the corn operation maintained crushing levels as per the Guidance published on May 25, 2026. The operation’s economic and financial performance during the period reflects lower ethanol selling prices and volumes, partially offset by growth in corn oil revenue and by lower raw material and manufacturing costs. In the first quarter of the crop year, around 139.0 thousand metric tons of corn were processed, with production of 59.1 thousand cubic meters of ethanol and 3 5.6 thousand metric tons of DDGS. The corn operation added approximately 103.0 thousand metric tons of product (in TRS produced), BRL 82.5 million of EBITDA and BRL 76.4 million of EBIT to São Martinho's consolidated performance. Corn Purchases As of June 30, 2026, the Company had purchased approximately 462.6 thousand metric tons of corn for processing in the 2026/27 crop year, at an approximate price of BRL 58.8/sack, net of taxes and freight expenses, of which 67.5 thousand metric tons were al ready in inventory and 395.1 thousand metric tons are scheduled for delivery throughout the crop year. Corn Purchases Net Price (BRL/Sc) 2026/27 Harvest 462,574 58.8 Physical Stocks 67,489 59.3 Forward Delivery 395,085 58.8 1Q27 EARNINGS RELEASE CORN OPERATION RESULTS & CORN PURCHASES
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11 Selling, General and Administrative Expenses In BRL '000 General and Administrative Expenses totaled BRL 91.3 million in 1Q27, a 1.9% decrease compared with 1Q26, due to: i) initiatives aimed at labor optimization; and ii) the impact of virtual options during the period, associated with the Company’s share performance. Selling Expenses amounted to BRL 80.9 million in 1Q27, up 13.4% from 1Q26, reflecting higher port and freight costs, driven by the increased volume of sugar sold (+14.5%) and ethanol exports. 1Q27 4Q26 1Q26 ∆ 1Q27/4Q26 ∆ 1Q27/1Q26 General and Admnistratives Expenses - Cash 88,033 75,106 89,331 17.2% -1.5% Labor / Fees 46,735 40,521 48,371 15.3% -3.4% General Expenses 41,298 34,585 40,960 19.4% 0.8% Stock Options/Others (1,957) 5,601 (338) -134.9% n.m Depreciation and Amortization 4,632 4,787 4,600 -3.2% 0.7% Non-cash Adjustments - IFRS16 595 753 (488) -21.0% n.m General and Admnistratives Expenses 91,304 86,248 93,106 5.9% -1.9% Port Costs / Freight 75,301 68,429 65,380 10.0% 15.2% Other 5,639 7,320 5,993 -23.0% -5.9% Selling Expenses 80,940 75,749 71,373 6.9% 13.4% % of Net Revenue 5.3% 3.4% 3.8% 1.9 p.p. 1.4 p.p. Selling, General and Administrative Expenses 172,244 161,997 164,479 6.3% 4.7% Others Revenues (Expenses) (41,783) (37,850) (33,789) 10.4% 23.7% Share of Profit of Equity-accounted Investees (2,610) (2,160) (1,587) 20.8% 64.5% Operating Income (Expenses) 127,851 121,987 129,103 4.8% -1.0% 1Q27 EARNINGS RELEASE CONSOLIDATED OPERATING EXPENSES & OTHER INCOME
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12 Financial Result In BRL '000 1Q27 4Q26 1Q26 ∆ 1Q27/4Q26 ∆ 1Q27/1Q26 Financial Revenues 169,021 131,914 77,505 28.1% 118.1% Financial Expenses (259,758) (220,248) (202,281) 17.9% 28.4% Financial Results (Cash) (90,737) (88,334) (124,776) 2.7% -27.3% Exchange Variation/Derivative/Others (22,227) (68,595) (40,225) -67.6% -44.7% IFRS16 Effects - APV (61,049) (32,163) (73,325) 89.8% -16.7% Income (Loss) from Real Estate Development 1,826 1,018 348 79.4% n.m Financial Result (172,187) (188,074) (237,978) -8.4% -27.6% Hedge of Debt - Operational - - 50 n.m. n.m Financial Result (Ex-Operational Hedge) (172,187) (188,074) (237,928) -8.4% -27.6% The Financial Result ( Cash) totaled an expense of BRL 90.7 million in 1Q27, down 27.3% compared with 1Q26, mainly reflecting higher financial revenues and cash equivalents, partially offset by increased in financial expenses and gross debt during the quarter. Considering the non-cash items (and Results from Real Estate Development), the financial result was an expense of BRL 172.2 million, a 27.6% reduction compared with 1Q26. In addition to cash -impacting movements, the variation also reflects the lower mark -to-market effect on financial instruments and the lower impact from the remeasurement of lease liabilities during the period, associated with lower traded volumes and a dec line in Consecana prices. Debt In BRL '000 jun/26 mar/26 Var%. Agribusiness Certificate of Receivables (CRA) 2,002,758 2,544,585 -21.3% BNDES / FINAME 2,339,943 2,179,628 7.4% Working Capital/ Export Credit Note (NCE) 957,015 98,384 872.7% Debentures 3,563,701 3,066,058 16.2% International Finance Corporation (IFC) 1,277,784 1,352,008 -5.5% Gross Debt 10,141,201 9,240,663 9.7% Cash and Cash Equivalents 4,936,376 4,284,333 15.2% Net Debt 5,204,825 4,956,330 5.0% % Debt in USD -1.0% -1.6% 0.6 p.p. LTM Adjusted EBITDA 3,280,664 3,503,416 -6.4% Net Debt / LTM Adj. EBITDA - BRL 1.59 x 1.41 x 12.1% Net Debt / LTM Adj. EBITDA - USD¹ 1.62 x 1.48 x 10.0% 1 - Av erage daily PTAX: Mar/26 BRL 5.44 and Jun/26 BRL 5.29 As of June 30, 2026, the Company's net debt stood at BRL 5.2 billion (+5.0% vs. March 2026). The increase reflects new borrowings intended to fund working capital and recurring investments. 1Q27 EARNINGS RELEASE CONSOLIDATED FINANCE INCOME (COSTS) & DEBT Changes in Net Debt BRL million Debt Repayment Schedule BRL million
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13 EBITDA and EBIT Reconciliation In BRL ‘000 1Q27 4Q26 1Q26 ∆ 1Q27/4Q26 ∆ 1Q27/1Q26 Profit Before Income Tax¹ 16,565 211,529 65,470 -92.2% -74.7% (-) Depreciation and Amortization¹ (512,965) (798,126) (574,176) -35.7% -10.7% (-) Financial Revenue (Expense), net (172,187) (188,074) (237,978) -8.4% -27.6% Book EBITDA¹ 701,717 1,197,729 877,624 -41.4% -20.0% Margin (%) 45.9% 53.4% 47.2% -7.5 p.p. -1.4 p.p. Non-cash Effect of IFRS 16 (124,730) (246,039) (137,295) -49.3% -9.2% Income (Loss) from Real Estate Development 1,826 1,018 348 79.4% n.m Equity in the Results of Investees (2,610) (2,160) (1,587) 20.8% 64.5% Maturity of Hedge Accounting - - (50) n.m. -100.0% Stock Option - Non-vested (905) 4,437 760 -120.4% n.m Biological Assets 6,976 139,449 65,225 -95.0% -89.3% Adjusted EBITDA 582,274 1,094,433 805,025 -46.8% -27.7% Margin (%) 38.1% 48.8% 43.3% -10.7 p.p. -5.3 p.p. Depreciation and Amortization (460,518) (593,475) (473,922) -22.4% -2.8% Adjusted EBIT 121,756 500,959 331,103 -75.7% -63.2% Margin (%) 8.0% 22.3% 17.8% -14.4 p.p. -9.9 p.p. Adjusted EBITDA 582,274 1,094,433 805,025 18.3% -27.7% Maintenance Capex (334,761) (726,059) (357,032) -53.9% -6.2% EBITDA - CAPEX 247,513 368,374 447,993 -32.8% -44.8% Margin (%) 16.2% 16.4% 24.1% -0.2 p.p. -7.9 p.p. 1 - Includes the IFRS 16 impacts Adjusted EBITDA stood at BRL 582.3 million in 1Q27 ( -27.7% vs. 1Q26), with Adjusted EBITDA margin of 38.1% ( -5.3 p.p.). The quarterly performance was driven primarily by lower TRS sales volumes and a decline in average sugar and ethanol prices, partially offset by lower costs during the period. Cash Profit In BRL '000 At the end of the first quarter of the 2026/27 crop year, Net Profit came to BRL 38.1 million ( -39.3% vs. 1Q26), reflecting primarily the lower volume of products sold during the period, in line with the sales strategy for the current crop year. 1Q27 EARNINGS RELEASE CONSOLIDATED EBITDA, EBIT & CASH INCOME
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14 Hedge Position In BRL '000 The above table details our sugar hedge position for the 2026/27 crop year (baseline: June 30, 2026), considering the portion fixed in USD and open positions, which justify this status as they serve as a counterbalance to the exposure of purchases of inputs in USD and other obligations in foreign currency. The Company has been using hedge structures (combinations of derivatives) to obtain higher market prices. In relation to the above details, the price conservatively considers the exercise of the structure at the lowest price. Sugar Hedged (metric tons) Avg. Price (USD c/p) Avg. Price (BRL/mt) 2026/27 Crop Year 554,514 15.78 477,038 15.78 1,983 77,476 15.78 not hedged 2027/28 Crop Year 20,626 16.76 2,055 19,956 16.76 2,055 670 16.76 not hedged 1Q27 EARNINGS RELEASE CONSOLIDATED HEDGE
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15 Capex Breakdown In BRL '000 Maintenance Capex totaled BRL 334.8 million in 1Q27, decreasing 6.2% from 1Q26. The variance is attributable to the normalization of weather conditions during the off -season period and the execution of the maintenance plan scheduled for the crop year. Capex allocated to Operational Improvements totaled BRL 33.1 million in 1Q27, up 46.5% from 1Q26, reflecting the schedule and the need to replace part of the fleet and light vehicles for the harvest season. Expansion Capex was BRL 138.7 million in 1Q27, due to the disbursement schedule of projects approved for the 2025/26 crop year, including; i) the expansion of the Corn Ethanol operation at the Boa Vista Unit; ii) the final disbursements for projects in the completion phase, including Biomethane; and iii) the expansion of the irrigation plan, focused on increasing the sugarcane crop’s resilience to weather conditions. 1Q27 EARNINGS RELEASE CONSOLIDATED CAPEX
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16 The section on adjustments was incorporated into the Company’s Earnings Release to facilitate the understating of results by detailing the impacts of managerial account movements in transforming the accounting data to an operating cash perspective and, als o, adjustments in the equity accounts arising from the adoption of specific accounting standards. Adjustments to 1Q27 Statement of Profit or Loss To help investors understand its recurring operating cash generation, the Company makes managerial adjustments to certain accounting data to define the adjusted EBITDA indicator, as shown in the following table: In BRL '000 Adjustments to Equity for 1Q27: Since March 2010, additionally, the Company has been adopting hedge accounting for derivatives designated as foreign currency debts. The quarterly results are recorded in Equity (“Carrying Value Adjustments”), net of deferred income tax and social contribution. In the period from April 2026 to June 2026, Equity decreased BRL 26.8 million. Accounting Impacts Adjusted Net Revenue 1,527,994 1,826 1,529,820 Debt Maturity (Hedge) - Repayment of Cogeneration Contracts - PPA - Income (Loss) from Real Estate Development 1,826 Cost of Goods Solds (COGS) (1,211,391) (65,903) (1,277,294) Biological Assets 6,976 Non-cash Effect of IFRS 16 (72,879) Gross Profit 316,603 (64,077) 252,526 Operating Expenses and Other Income (127,851) (2,920) (130,771) Virtual Options - Non-vested (905) Share of Profit of Equity-accounted Investees (2,610) Repayment of Cogeneration Contracts - PPA - Rights with Copersucar - Non-cash Effect of IFRS 16 595 EBIT 188,752 (66,996) 121,756 Depreciation and Amortization 512,965 (52,447) 460,518 EBITDA 701,717 (119,443) 582,274 Sustaining Capex (334,761) (334,761) EBITDA - CAPEX 366,956 (119,443) 247,513 1Q27 Financial expenses related to hedge accounting exchange variation Finance income (loss) from real estate development was included in net revenue. The effects of costs and revenues related to virtual options and share of profit of equity-accounted investees were excluded. Disconsiders Biological assets and IFRS16 adjustments from cost as they are non - cash effects. The revenue related to the receipt of Rights with Copersucar was adjusted because it does not represent a recurring revenue from the company's operating activity. 1Q27 EARNINGS RELEASE CONSOLIDATED ADJUSTMENTS
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17 Effects of Adoption of IFRS 16/CPC 06 Starting from the fiscal year ended March 31, 2020, the Company has adopted the standard IFRS 16 – Leases, which introduced a single model for booking leased fields and agricultural partnerships in the Statement of Financial Position. The right to use such assets was recognized as an asset and the payment obligations as a liability. The Company adopted the cumulative effect simplified approach and the following criteria: 1. Liabilities: outstanding balances of the agreements in force on the date of first -time adoption, net of advances and discounted by the average rate of future agreements of Interbank Deposits – DI (nominal coupon rate), with terms equivalent to those of partnership and lease agreements; and 2. Assets: amount equivalent to liabilities adjusted to present value. There was no impact on the Company’s Cash Flow or Adjusted EBITDA. For more details, see the Financial Statements for the period. Impacts from IFRS16 on 1Q24 Statement of Profit or Loss: In BRL '000 Before IFRS 16 Impacts After IFRS 16 Net Revenue¹ 1,529,820 - 1,529,820 COGS (1,284,270) 72,879 (1,211,391) (-) Payment of Leases 123,918 (+) Amortization of Right-of-Use Assets (51,039) Gross Profit 245,550 72,879 318,429 Selling/General/Adm. Expenses (127,256) (595) (127,851) (-) Payment of Leases 812 (+) Amortization of Right-of-Use Assets (1,408) Op. Profit Before Finance Income (Costs) 118,295 72,283 190,578 Finance Income (Costs)/Debt Hedge (112,964) (61,049) (174,013) Present Value Adjustment - Leases (61,049) Profit befores Taxes 5,331 11,234 16,565 Income tax 25,404 (3,820) 21,584 Net Profit 30,734 7,415 38,149 Book EBITDA 576,987 124,730 701,717 Payment of Leases (124,730) (124,730) Other Adjustments 5,287 5,287 Adjusted EBITDA 582,274 - 582,274 1Q27 As we no longer account for cash cost of agrarian contracts, Book EBITDA increased, which effect has been adjusted for the Adjusted EBITDA We no longer account for cash cost of agrarian contracts We now account for contract amortization Adjustment to Present Value (APV) of agrarian contracts is accounted for as net finance income (costs) 1Q27 EARNINGS RELEASE CONSOLIDATED ADJUSTMENTS
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18 This document contains forward -looking statements related to the business outlook, operating and financial projections and growth prospects of São Martinho. These statements are merely projections and as such are based exclusively on Management’s expectations for the future of the business. These forward -looking statements depend materially on changes in market conditions and the performance of the Brazilian economy, the industry and international markets, and therefore are subject to change without prior notice. 1Q27 EARNINGS RELEASE CONSOLIDATED DISCLAIMER
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19 The figures in the following tables consider the impacts from the adoption of IFRS 16 as of the 2019/20 crop year, in accordance with the consolidated and audited Financial Statements, including the effects detailed in section “Adoption of IFRS 16/CPC 06 – Leases” on page 3 of this Earnings Release. Statement of Profit or Loss São Martinho - Consolidated in BRL ‘000 1Q27 EARNINGS RELEASE CONSOLIDATED FINANCIAL STATEMENTS
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20 1Q24 EARNINGS RELEASE CONSOLIDATED FINANCIAL STATEMENTS Statement of Financial Position (Assets) São Martinho - Consolidated In BRL ‘000 1Q27 EARNINGS RELEASE CONSOLIDATED FINANCIAL STATEMENTS
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21 Statement of Financial Position (Liabilities) São Martinho - Consolidated in BRL ‘000 1Q27 EARNINGS RELEASE CONSOLIDATED FINANCIAL STATEMENTS
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22 Consolidated Cash Flow São Martinho - Consolidated In BRL ‘000 1Q27 EARNINGS RELEASE CONSOLIDATED FINANCIAL STATEMENTS
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23 saomartinho.com.br/ri INVESTOR RELATIONS +55 11 2105-4100 ri@saomartinho.com.br www.saomartinho.com.br/ri