Cosan (NYSE:CSAN) management on its fourth-quarter 2025 earnings call emphasized balance sheet actions taken during 2025, discussed operating performance across its portfolio companies, and addressed investor questions around Raízen’s capital structure and Cosan’s deleveraging strategy.
Quarterly results and portfolio performance
Cosan reported managed EBITDA of BRL 7.8 billion for the quarter, described as broadly in line with the fourth quarter of 2024. For the full year, managed EBITDA totaled BRL 26.5 billion, down versus 2024, which management attributed mainly to Raízen and Radar.
Dividends and interest on equity received were BRL 479 million in the quarter, mainly from Compass and Radar. Full-year cash received totaled BRL 2.6 billion, down from BRL 4.3 billion in 2024. Management attributed the decline to the absence of dividends from Moove in what it called an atypical year, plus a lower contribution from Compass due to an extraordinary distribution recorded in 2024 related to the reversal of a tax provision (ICMS subsidy) at Comgás.
Operating highlights by business
Management reviewed performance across the group’s main assets:
- Rumo: Higher transported volumes, supported by commercial efforts and cost discipline. Cosan said Rumo’s EBITDA increased 4% compared to 2024.
- Compass and Edge: Compass saw higher gas distribution volumes over the year, driven by the residential segment and new connections, with additional support from milder temperatures and improved commercial performance (including food service). Edge reported higher volumes marketed to the free market. Cosan said Compass delivered EBITDA in line with 2024, and on a recurring basis posted 11% EBITDA growth.
- Moove: The quarter included market share gains in Brazil, reaching 14.5% for the year per IBP data, despite lower total global volume sold. Management highlighted recovery of Brazil’s industrial capacity under a multi-site configuration following a fire, and said the company recognized BRL 934 million related to full receipt of insurance indemnity. Cosan said Moove’s 2025 EBITDA came in slightly above 2024.
- Radar: The year was characterized by lower property sales volume and a portfolio revaluation with more moderate growth, which management said contributed to EBITDA that was 6% lower than the prior period.
- Raízen: Fuel distribution was described as the quarter’s highlight, with volume and margin expansion in Brazil driven by commercial efforts, cost management, and government support in addressing illegal players, plus a recovery in Argentina after maintenance shutdowns. Management also noted a slower crushing pace and lower sugar prices, with adjusted EBITDA down 2% quarter-over-quarter despite the distribution improvement.
Capital structure actions and leverage metrics
Executives said 2025 included multiple transactions aimed at strengthening Cosan’s capital structure. In the first half of the year, Cosan completed the sale of its stake in Vale, raising BRL 9 billion, which management said was fully allocated to debt prepayments. In September 2025, Cosan announced public equity offerings “anchored by BTG Pactual and Perfin Infra,” which injected BRL 10.5 billion into cash. In December 2025, Cosan executed a partial sale of Rumo shares in conjunction with a total return swap and renegotiated the preferred equity structure at Cosan Dez. Management said these actions generated more than BRL 22 billion from capital markets with a focus on reducing leverage.
Starting in the quarter, Cosan began reporting “expanded net debt,” which includes local debt, bonds, and the preferred equity structure of Cosan Dez. Expanded net debt fell to BRL 9.8 billion, which the company described as a reduction of nearly BRL 14 billion.
Cosan also discussed debt service coverage. On a trailing twelve-month basis, management said elevated financial expenses and the phase-out of dividends previously paid by Compass contributed to a decline in DSCR, which closed at 0.9x. The company reported an average cost of debt of CDI + 0.97% at quarter end, a 43-basis-point reduction versus the fourth quarter of 2024, while average maturity remained stable at 5.8 years.
The company presented an amortization schedule on a pro forma basis reflecting prepayment transactions announced in January and February 2026, which management said would further reduce gross debt by more than BRL 6.2 billion. Cosan ended the year with BRL 16 billion in cash, according to management’s discussion of cash movements.
Raízen talks with Shell and creditors
In the Q&A session, management addressed questions about Raízen’s capital structure and its discussions with Shell and creditors. Executives said they have been in conversations for some time to find a solution for Raízen, while prioritizing actions to protect Cosan’s own capital structure to avoid “contamination” from Raízen’s circumstances.
Management explained that, during Cosan’s capitalization process, it communicated limits on how much capital it could contribute to Raízen. Executives said Cosan and Shell assessed alternatives over the past six months but did not reach agreement on Cosan’s stake under certain options. Management said a “material fact” disclosed that the structure being discussed would not include Cosan’s participation based on the current terms, and that negotiations with creditors are ongoing.
Executives said they believe a satisfactory outcome must be “definitive” and that the resulting capital structure should be suitable for Raízen’s different businesses, which they described as having different cash generation profiles and capital needs. Cosan said it is monitoring the process as a shareholder and board member and expects “news” in the coming weeks regarding a plan to reach a solution.
Deleveraging priorities, divestment approach, and other updates
Management reiterated that the goal is to reduce holding company leverage substantially, with Marcelo Martins stating the objective is to bring holding company debt to zero over time, arguing that leverage made more sense when the company was expanding its portfolio. Executives said there is no set date to reach zero debt and emphasized that asset sales, if pursued, would be executed “when the time is right,” taking market conditions and valuation into account.
Addressing market speculation, management denied reports that Cosan is pursuing a full sale of its stake in Rumo, stating the specific media speculation was “wrong” and “not true,” while also noting that the company is not excluding any assets from consideration for partial sale and has not defined minimum stakes to retain.
On Moove, Rafael Bergman said Moove has recovered production capacity “completely, 100%,” and that the main challenge is improving logistics efficiency under a multi-site strategy. He said the company does not expect to start 2026 at historical profitability levels seen in 2023 and 2024, but aims to gradually return to those levels by addressing remaining inefficiencies and focusing on a premium product mix and service quality.
On foreign exchange exposure, Bergman said Cosan repaid some debentures and three bonds, leaving foreign currency exposure primarily in the company’s perpetual bonds. He said Cosan uses three-year FX protection and does not fully hedge the principal, describing the approach as aligned with the perpetual nature of the debt.
Finally, when asked about Radar and potential divestments, management said it continues to recycle the portfolio but did not provide concrete updates, adding it would inform the market if developments emerge.
About Cosan (NYSE:CSAN)
Cosan Limited (NYSE: CSAN) is a Brazilian diversified energy and logistics group focused on agribusiness, fuels, and infrastructure. Its core activities include the cultivation of sugarcane, production of ethanol and sugar, generation of bioelectricity from bagasse, and distribution of fuels under the Raízen joint venture with Shell. Through its subsidiary Moove, Cosan is a leading global producer of base oils and lubricants, while Comgás serves as one of Brazil’s largest natural gas distributors.
Founded in 1936 in the state of São Paulo, Cosan has grown through organic expansion and strategic acquisitions.
