By Brazil Stock Guide – Raízen S.A. (B3: RAIZ4), the Shell-Cosan joint venture and Brazil’s largest producer of renewable energy, increased sugar production by 30% in the second quarter of the 2025/26 crop year, driven by favorable weather conditions and faster cane harvesting. The company processed 35.1 million tons of sugarcane in the period, up from 32.9 million a year earlier, despite a 3% decline in agricultural productivity and total recoverable sugar (ATR) per ton.
The stronger milling pace enabled Raízen to maximize sugar output to 4.78 million tons and shift its production mix to 56% sugar and 44% ethanol, compared with 52% and 48% a year ago. Ethanol sales fell 16% to 817,000 cubic meters, consistent with the company’s lower fuel production during the quarter. Output of second-generation ethanol (E2G) reached 42,900 cubic meters, reflecting the ramp-up of the Univalem, Barra and Bonfim plants.
In bioenergy, cogeneration of electricity from biomass decreased to 755 GWh, impacted by the reduced availability of bagasse. The company noted that operational adjustments helped maintain stable profitability despite the seasonal dip in bioenergy exports.
Raízen’s fuel distribution segment continued to expand in both Brazil and Argentina. In Brazil, total volumes sold rose to between 7.4 and 7.5 million cubic meters, in line with the company’s operational plan and supported by enforcement measures against the illegal fuel market. In Argentina, sales grew to about 1.8 million cubic meters, helped by a planned refinery maintenance program aimed at improving efficiency.
The quarter’s results come as Raízen’s shareholders — Cosan and Shell — seek alternatives to address the company’s high leverage and limited cash generation, following an aggressive investment cycle in ethanol, bioenergy and logistics. Analysts see room for asset optimization or capital structure adjustments to improve returns. The company will release its full audited results for the period on November 14, 2025, after market close.
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