SLC is back in the black by selling less. That's exactly what the market liked
Revenue fell 13%, but gross margin hit 44.7% and there was cash left over. The stock rose more than 5%.
To save you time3
- How much did SLC earn?
- R$192.4 million in the third quarter, reversing a loss a year earlier.
- If revenue fell, why did the market like it?
- Gross margin jumped to 44.7% and free cash flow came in at a positive R$346.1 million. It made more by selling less.
- What about debt?
- Adjusted net debt is R$7.13 billion, but leverage fell versus June.
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The number that matters in SLC Agrícola (SLCE3)'s report isn't profit. It's margin.
The company earned R$192.4 million in the third quarter after a loss a year earlier. It did so with revenue down 13%, at R$1.81 billion. In other words: it made more by selling less.
Where the trick is
- 44.7% gross margin, up almost 15 points;
- soybean revenue of R$606 million, +83.6%;
- free cash flow of R$346.1 million.
Adjusted EBITDA fell 14% to R$420 million, but with cash coming in, that matters less. The stock rose more than 5% on the print.
The debt
Adjusted net debt stands at R$7.13 billion. High in absolute terms, but leverage fell versus June. In a year with the Selic at 13.75%, deleveraging with cheap grain is playing it well.
My takeaway
SLC has become a good gauge of large, well-capitalized growers: if it can hold margins at these prices, agribusiness's 2026 problem is more about credit for small, leveraged players than about prices themselves.
