By Brazil Stock Guide – Cosan S.A. (B3: CSAN3) reported a net loss of R$5.8 billion in the fourth quarter of 2025, reversing a profit of R$2.4 billion in 4Q24, as equity losses tied to its joint venture Raízen and financial expenses weighed on the holding’s consolidated results. The company posted net revenue of R$11.6 billion in the quarter, while the reassessment of its investment in the bioenergy and fuel distribution company dominated the earnings impact.
Cosan recorded negative equity income of R$5.6 billion in the quarter, largely reflecting the deterioration of Raízen’s financial position and the decision to reduce the carrying value of the investment to zero. Consolidated EBITDA reached about R$4.3 billion, broadly stable compared with the same period a year earlier, highlighting that the operating portfolio remained resilient even as accounting losses dragged the bottom line.
Operating portfolio
Across the group’s businesses, performance remained mixed but stable. Rail logistics operator Rumo continued to benefit from strong grain transportation volumes and the expansion of Brazil’s northern export corridor. Natural gas platform Compass maintained steady operations supported by distribution and infrastructure assets, although the migration of industrial customers to Brazil’s free gas market continued to pressure volumes.
Lubricants producer Moove was still affected by operational disruptions following a fire at its Rio de Janeiro facility earlier in the year, while farmland manager Radar recorded lower revenues amid weaker land sales activity.
The quarter therefore illustrates a key feature of Cosan’s consolidated earnings: while operating assets generate relatively stable cash flow, equity results from large investments can dominate reported profits.
New control structure
During the quarter, Cosan also completed a major capital raise that reshaped the holding’s ownership structure. The company raised R$10.27 billion through two primary share offerings, bringing investors linked to BTG Pactual and Perfin into the shareholder base.
The investment was made through the vehicle Vertiz, which now shares control of Cosan alongside founder Rubens Ometto, creating a new control bloc backed by institutional investors. The transaction strengthened the company’s capital structure and supported its deleveraging strategy.
Debt reduction
Following the capital raise and asset monetization transactions, Cosan accelerated efforts to reduce leverage. The company said expanded corporate net debt fell to about R$9.8 billion at the end of the quarter, a decline of roughly 46% compared with the previous quarter.
Cosan also prepaid about R$6.2 billion in debt, part of a broader effort to simplify the holding’s capital structure and reduce financial pressure after years of aggressive expansion. Still, Raízen — which ended 2025 with about R$55 billion in net debt — remains the main source of risk overshadowing Cosan’s consolidated results.
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