By Brazil Stock Guide – SLC Agrícola (B3: SLCE3) delivered a strong third quarter, posting a R$636 million profit, up 19% year on year, as revenue jumped 27% to a record R$6.28 billion. Soybean and corn sales surged, offsetting weaker cotton prices. Adjusted EBITDA climbed 42% to R$2.03 billion, with margins expanding to 32.3% — a new high for the group.
Growth with irrigation and BTG funds
In early November, SLC sealed a R$1.03 billion partnership with BTG Pactual investment funds to acquire and lease farmland, develop irrigation systems and build new infrastructure. The joint ventures will be 51%-owned by SLC and 49% by BTG’s funds, operating under long-term rural partnerships that grant SLC exclusive cultivation rights and share roughly 19% of harvest proceeds with investors. The plan includes 21,400 hectares in Bahia’s Paladino farm and expands irrigation in the Piratini unit, set to reach 13,200 hectares by 2026.
Bigger scale, stronger balance sheet
With the acquisition of Sierentz Agro Brasil Ltda. now consolidated, SLC began the 2025/26 crop year with a record 835,700 hectares planted, up 13.6% from last season. Soy covers more than half the total area, while corn jumped 29%. Free cash flow turned positive at R$567 million in the quarter, even after heavy capex and land deals. Year to date, cash flow remained negative at R$1.5 billion, mainly from acquisitions, dividends and farm purchases. Net leverage closed at 2.34x EBITDA, with R$6.2 billion in net debt — 69% long term.
Corn was the clear winner, with unit gross profit up 282% and record productivity. Soy also held firm, rising 64% year to date, while cattle operations surged 173% on better pricing and heavier animals. Cotton was the lone drag, with gross profit per ton down 26% as weaker prices met higher costs.
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