Cosan Q1 Earnings Call Highlights

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Cosan (NYSE:CSAN) reported a narrower first-quarter nett nonaccomplishment and highlighted a bid of debt-reduction measures, portion absorption said the holding institution remains focused connected deleveraging and simplifying its portfolio.

Fernando Tinel, Cosan’s Head of Investor Relations and ESG, said the institution ended Q1 2026 with a nett nonaccomplishment of BRL 1.6 billion, an betterment of BRL 0.2 cardinal compared with Q1 2025. The effect included an astir BRL 1 cardinal interaction tied to the prepayment of 2029 and 2031 bonds, recorded successful fiscal results and deferred income taxation lines, with nary currency effect. Tinel said the interaction was partially offset by improved portfolio performance.

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Expanded nett indebtedness roseate 18% quarter-over-quarter, which Tinel attributed chiefly to the lack of applicable dividends successful the play and the interaction of indebtedness prepayments carried retired during the quarter. Compared with the aforesaid play successful 2025, expanded nett indebtedness declined 34%, reflecting proceeds from a superior summation received successful the last 4th of past year.

The company’s involvement sum ratio fell to 0.4 times from 0.9 times successful the erstwhile quarter. Tinel said the diminution was chiefly owed to little dividends received implicit the past 12 months, arsenic the effect of Compass’ superior simplification nary longer contributes to the metric’s numerator.

Debt Reduction Remains Central Focus

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Cosan said it reduced expanded gross indebtedness by BRL 6.5 cardinal during the 4th and extended its mean maturity to 6.1 years. Tinel said the mean outgo of debt, excluding the perpetual bond, stood astatine CDI positive 1.15% per year.

The institution besides ended the 4th with BRL 7.7 cardinal successful cash. Key currency uses included the aboriginal redemption of the archetypal bid of its 4th and sixth debenture issuances, totaling astir BRL 566 cardinal successful gross indebtedness reduction, and the afloat redemption of bonds maturing successful 2029 and 2031, totaling astir BRL 5.6 billion. Together, those moves reduced indebtedness by BRL 6.2 billion, according to Tinel.

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As a consequent event, Cosan completed a secondary nationalist offering of communal shares successful Compass. Tinel said Cosan sold portion of its involvement astatine BRL 28 per stock and whitethorn person astir BRL 2.5 cardinal successful currency proceeds if supplementary shares are afloat placed. He emphasized that Cosan remains Compass’ controlling shareholder.

Portfolio Companies Post Mixed Operating Trends

Tinel said Cosan’s investees delivered coagulated results that were mostly successful enactment with Q1 2025. He highlighted Rumo’s grounds transported volumes, which roseate 25%, supported by beardown show successful its bluish operation, fixed-cost dilution and marketplace stock gains, peculiarly astatine the Port of Santos. Rumo’s reported EBITDA was up 7% year-over-year.