São Martinho cut its crush and profit fell 71%. The stock dropped over 9%
Revenue actually rose, but the mill will crush less cane this season. The company calls it one of the toughest harvests in years.
To save you time3
- How much did São Martinho earn?
- R$50.9 million in Q2 of the 2026/27 season, about 71% less.
- Why did the stock fall so much?
- The company cut its season crush estimate from 23.6 to 22.8 million tons of cane.
- Did revenue fall?
- No: it rose 7.7% to R$1.87bn. Adjusted EBITDA fell 6.9% to R$760.9m.
Tickers in this story
Read the full analysis +
São Martinho reported its quarter and the market didn't forgive: the stock fell more than 9% the next day.
The quarter
- Profit: R$50.9 million, about 71% lower.
- Revenue: R$1.87 billion, up 7.7%.
- Adjusted EBITDA: R$760.9 million, down 6.9%.
What really weighed
Not the quarterly numbers, the season revision: the estimated crush fell from 23.6 to 22.8 million tons of cane. Less cane means less sugar and ethanol to sell, and the company itself called it one of the toughest harvests in recent years.
Adding context
Mills were already losing extra revenue to cheap CBIOs. Now, with a smaller crush, operating leverage works against them.
What I'd watch
Weather and cane productivity in the coming months, and sugar prices in New York. If next season doesn't recover, the market will rethink the whole sector, not just SMTO3.
