Cosan S.A. (CSAN) Earnings
Cosan S.A. is expected to report next earnings on August 14, 2026 (in NaN days), with a consensus EPS estimate of $0.01. CSAN has beaten EPS estimates in 2 of its last 10 reported quarters (average surprise -8632.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 15, 2026 | $0.00 | $-0.31 | -20629.8% | $1.5B | +0.0% |
| Mar 10, 2026 | $0.01 | $-0.16 | -1818.6% | $1.8B | -75.6% |
| Nov 14, 2025 | $0.02 | $-0.47 | -2010.6% | $2.0B | -72.5% |
| Aug 14, 2025 | $0.00 | $-0.36 | -10072.3% | $1.9B | -72.9% |
| May 15, 2025 | $-0.02 | $-0.65 | -2968.9% | $1.7B | -76.9% |
| Mar 25, 2025 | — | $-3.22 | — | $1.9B | -73.7% |
| Aug 14, 2024 | $-0.04 | $-0.09 | -121.8% | $1.9B | +64.3% |
| May 28, 2024 | $0.16 | $-0.08 | -151.2% | $1.9B | +52.6% |
| Nov 13, 2023 | $0.10 | $0.11 | +9.5% | $2.0B | +18.5% |
| Aug 14, 2023 | $-0.14 | $0.07 | +150.0% | $2.1B | +26.7% |
| May 16, 2023 | $0.22 | $-0.02 | -109.1% | $1.9B | +26.5% |
| Feb 28, 2023 | — | $0.27 | — | $2.0B | — |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 15, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Debt Reduction & Liability Management - Completed early redemption of bond series maturing in 2029, 2030, and 2031, cutting total gross indebtedness by 6.2 billion BRL, with an overall gross debt reduction of 6.5 billion BRL for the quarter. - Extended the average debt maturity to 6.1 years, with an average cost of debt (excluding perpetual bonds) of CDI plus 1.15% per year. Ended the quarter with a cash position of 7.7 billion BRL. Capital Recycling & Deleveraging Strategy - Concluded a secondary public offering of Compass common shares post-quarter, selling a partial stake at 28 BRL per share. COSAN expects to receive up to approximately $2.5 billion in total cash proceeds if the full supplementary share allotment is exercised, and remains Compass's controlling shareholder. - All transactions align with the company's core priority to reduce holding company leverage and simplify the investment portfolio. Operational Milestones - Rumo achieved all-time record transported volumes, gaining market share in key operating regions. - Move continued its successful market share recovery after the 2025 Rio de Janeiro plant fire, with improving sales and profitability. - New sustainable energy operations (off-grid B2B LNG, OneBio biomethane plant) were launched at Compass.
Guidance
- Management maintained its core commitment to continued deleveraging and portfolio simplification, with the Compass secondary offering as a key milestone toward this goal. - Management expects Move's profitability to improve over coming quarters as operational efficiencies from the new multi-site model are realized, with both Brazilian/Latin American and U.S. operations projected to deliver performance gains. - Management has stated that after deleveraging is completed and divestments are finalized, the holding company will likely be wound down, with remaining subsidiary shares distributed directly to COSAN shareholders, targeted to begin as early as next year pending market conditions. - No explicit numerical financial guidance for the full year was provided in the call.
Segment performance
COSAN (parent holding company): Reported a net loss of 1.6 billion BRL, an improvement of 0.2 billion BRL compared to Q1 2025. Expanded net debt increased 18% quarter-over-quarter to 11.5 billion BRL, but decreased 34% year-over-year. Interest coverage ratio fell to 0.4x from 0.9x in the prior quarter. Rumo (logistics): Recorded 25% growth in transported volumes, with strong performance in northern operations driving fixed cost dilution and market share gains at the Port of Santos. Reported EBITDA was 7% higher than Q1 2025. Compass (gas distribution): Distributed gas volumes grew slightly, with EBITDA up 2% year-over-year, supported by an improved distribution mix and higher volumes at its Edge operations. The company launched new off-grid B2B LNG operations and OneBio's biomethane plant. Move (lubricants): Continued post-fire operational optimization, with 10% year-over-year growth in lubricant sales (primarily in South America). EBITDA was slightly above the prior year period, with market share in Brazil recovering to 16.4%. Radar (real estate/land leasing): EBITDA decreased 27% year-over-year, due to lower land lease income driven by lower ATR and soybean prices. Raizen: COSAN no longer recognizes Raizen's results under the equity method, as the carrying value of the investment was reduced to zero after 2025 year-end impairments, making disclosures immaterial per accounting standards.
Risks & headwinds
- Forward-looking performance is not guaranteed, and results may differ materially from projections due to overall macroeconomic conditions, market volatility, and other operating uncertainties. - Accrued annual interest and preferred share costs are projected to total approximately 2.2 billion BRL, with holding company dividends adding another 300 million BRL, creating pressure on near-term cash generation and debt metrics. - The timing and execution of portfolio asset sales and the holding company wind-down process are dependent on favorable market conditions, and cannot be guaranteed. - Key terms of Raizen's ongoing out-of-court reorganization (including conversion size and price) are still under negotiation, creating uncertainty around the final size of COSAN's residual stake.
Analyst Q&A
Q: Given expanded net debt rose to 11.5 billion BRL this quarter, and projected annual interest and holding costs total ~2.5 billion BRL, what levers will COSAN use to improve cash generation to get the debt service coverage ratio above 1 over the next 12-24 months?
A: The Q1 net debt increase was largely driven by one-off effects from the debt prepayment strategy and an accounting change reclassifying preferred share costs. The successful Compass secondary offering will deliver up to $2.5 billion in proceeds, which will materially reduce leverage. Management's core deleveraging strategy relies on selling portfolio stakes rather than relying on subsidiary dividends, and additional portfolio asset sales are actively being pursued.
Q: What is the outlook for Move's return to double-digit margins, and what are your plans for selling stakes in unlisted subsidiaries like Move and Radar?
A: Move still has a path to improve profitability: the multi-site operational restructuring is still delivering efficiency gains in Brazil, and U.S. operations are renegotiating contracts to improve performance, with better results expected over the coming quarters. For Radar, management is actively pursuing sales of property portfolios or broader groupings of assets to recycle capital, rather than just selling individual properties. No specific timing for a full sale of Radar or Move has been announced.
Q: What was the rationale for the Rumo share derivative swap, and is it a signal that a full or partial stake sale of Rumo is coming?
A: The 10% Rumo stake derivative transaction was done at the end of 2025 to generate low-cost liquidity for COSAN's liability management strategy. Any potential sale of a Rumo stake is a separate portfolio-level decision that is still under consideration, with no concrete plans to announce at this time. Any future transaction will be a tactical decision made closer to the timing of any potential sale.
Q: After the accounting change stopping recognition of Raizen's results, what is COSAN's plan for its stake in Raizen as part of portfolio discussions?
A: Raizen is undergoing an out-of-court reorganization that requires new capital from existing shareholders, and COSAN will not contribute additional funding. This will result in significant dilution of COSAN's stake, leaving it with a small minority holding that will no longer be a core investment. COSAN does not intend to remain in the existing shareholder agreement with Shell, and the residual stake will likely be sold at a future date once the reorganization is complete.
Q: Once balance sheet deleveraging is complete in the next 2-3 years, what will be the long-term role of the COSAN holding company?
A: Once deleveraging and portfolio divestment are completed, COSAN plans to wind down the holding company structure. All operating growth and investment responsibility will remain with the individual subsidiary businesses. The end goal is to distribute remaining subsidiary shares directly to COSAN shareholders, allowing them to hold direct stakes in the operating businesses. This process is expected to begin as early as next year, once leverage is sufficiently reduced.