Cosan S.A. 2Q26 Financial Summary
Business Context and Reporting Period
Cosan S.A. reported its second-quarter 2026 (2Q26) results on August 14, 2026. The company is a Brazilian holding company focused on logistics, energy, and agriculture. The reporting period covers operations under IFRS, with comparisons primarily against 2Q25 and 1Q26. Key strategic activities included the secondary IPO of Compass, asset divestments, and significant debt reduction initiatives.
Key Financial Metrics
| Metric | 2Q26 | 2Q25 | 1Q26 | 6M26 |
|---|---|---|---|---|
| Net Result (Cosan Corporate) | (R$320 mn) | (R$946 mn) | (R$1,583 mn) | (R$1,904 mn) |
| Expanded Net Debt | R$9,217 mn | R$17,538 mn | R$11,471 mn | R$9,217 mn |
| Dividends & IoC Received | R$399 mn | R$579 mn | R$36 mn | R$434 mn |
| DSCR (LTM) | 0.2x | 1.2x | 0.4x | 0.2x |
| Adjusted EBITDA (Portfolio) | R$4,008 mn | R$4,128 mn | R$3,313 mn | R$7,399 mn |
Note: Portfolio Adjusted EBITDA is the sum of Rumo (R$2,267 mn), Compass (R$1,275 mn), Moove (R$475 mn), and Radar (R$-29 mn).
Material Changes vs. Prior Periods
- Net Loss Improvement: The net loss narrowed by 66% year-over-year (vs. 2Q25) and by 80% quarter-over-quarter (vs. 1Q26). This improvement was driven by lower financial costs, reduced G&A expenses, and the non-recognition of Raízen's results, partially offset by a R$233 million impairment on the Port São Luís asset.
- Debt Reduction: Expanded net debt decreased 47% year-over-year and 20% quarter-over-quarter. In the first six months of 2026, the company prepaid R$8.8 billion in debt, utilizing proceeds from the Compass IPO and other capitalization events.
- Portfolio Performance: Rumo and Compass showed stable to slightly improved Adjusted EBITDA year-over-year. Moove saw a 6% decline, while Radar reported a negative Adjusted EBITDA of R$29 million due to land revaluation and lower lease revenues.
- Cost Optimization: General and administrative expenses declined by R$36 million in 2Q26 compared to 2Q25, reflecting organizational restructuring and the initiation of the ADS delisting process from the NYSE.
Guidance, Outlook, and Risks
- DSCR Guidance: Management provided new guidance for the Debt Service Coverage Ratio (DSCR), expecting it to converge to a range of 0.8x to 1.2x by year-end 2026. This assumes ordinary dividend receipts of R$1.3 billion to R$1.8 billion and continued reduction in financial expenses.
- Divestment Progress:
- Radar: Sale of part of the portfolio for R$1.85 billion (R$586 mn attributable to Cosan) is expected to close in October 2026.
- Port São Luís: Letter of intent signed for the sale of 100% of the stake for an indicative R$300 million plus earn-out. Final price and closing are subject to definitive documents.
- Raízen Restructuring: The out-of-court restructuring plan for Raízen was approved by 81.6% of unsecured financial creditors.
- Risks: The DSCR metric remains volatile due to the timing of dividend receipts from investees. The company faces execution risk regarding the closing of the Radar and Port São Luís transactions.
Investor Verification Checklist
- Verify the closing conditions and final proceeds for the Radar portfolio sale and Port São Luís divestment.
- Monitor the actual DSCR trajectory against the 0.8x–1.2x year-end guidance, specifically tracking dividend inflows from portfolio companies.
- Confirm the impact of the Raízen restructuring on future equity pickup contributions once its equity becomes positive.
- Review the status of the NYSE ADS delisting process and its impact on liquidity and G&A expenses.
- Assess the sustainability of the R$8.8 billion debt prepayment pace and the resulting interest cost savings.