Minerva S.A.

Q3 2025 gross revenue was BRL 16.3 billion, up 80% year over year, and net revenue was BRL 15.5 billion, up 82% year over year and 11% sequentially. EBITDA was BRL 1.4 billion, up 71% year over year and 7% quarter over quarter, with an 8.9% margin; adjusted EBITDA over the last 12 months was BRL 4.7 billion, with a 9% margin. Net income was BRL 120 million in Q3 and BRL 763 million year to date. Net debt was BRL 11.8 billion, down 17% from the prior quarter, and leverage improved to 2.5x from 3.16x. Cash ended at BRL 14.9 billion. Forward guidance given on the call was that full-year 2025 net revenue should land within BRL 50 billion to BRL 58 billion, and management said Q4 would be the first fully normalized quarter after integration. In Q&A, Edison also said a conservative working-capital normalization scenario could still leave 2025 free cash flow at about BRL 1.5 billion, with EBITDA for 2025 a little above BRL 5 billion.

Fernando Queiroz framed the quarter as proof that Minerva’s geographic diversification and arbitration model are working, especially in a volatile global beef market. He emphasized that exports remained the main driver and said supply constraints in the Northern Hemisphere, strong China demand, and a constrained U.S. herd continue to support the industry. He also highlighted early completion of integration, calling it a result of disciplined execution and a more efficient management model.

Edison Ticle focused on record profitability, leverage reduction, and cash generation. He cited BRL 1.4 billion of EBITDA, BRL 2.5 billion of quarterly free cash flow, BRL 11.8 billion of net debt, and BRL 14.9 billion of cash, along with a 17th debenture issuance of BRL 2 billion and about BRL 2.3 billion of 2025 bond repurchases/cancellations. He said gross margin was pressured by cattle price inflation, with cattle up almost 25% versus the prior quarter, but noted SG&A was a little under 10% of net revenue and should normalize around that level. He also said the new assets, once normalized, would imply about BRL 1.6 billion of annualized EBITDA at a 9% margin.

Analysts focused on whether the quarter benefited from tactical U.S. inventory sales, how much working capital release was one-off versus recurring, and whether Q4 cash flow would remain strong. Edison said Q3 gross margin was worse mainly because cattle prices rose sharply, but the company still gained scale and cost dilution; he also said working capital should normalize into year-end and that even in a conservative case Minerva could still generate about BRL 1.5 billion of free cash flow for 2025. Questions on China centered on whether Q3 demand was pulled forward ahead of possible safeguards; Fernando said China remains strong, but some normalization could occur if policy changes emerge, while low inventory in Chinese ports and reduced local production still support the market. On dividends, Edison said the Board would be approached once 2025 final numbers are known, and that the lower leverage level gives the company flexibility, though no concrete change had been decided.