Brazilian conglomerate Cosan S.A. reported second-quarter 2026 earnings that fell short of analyst forecasts, even as the company reduced its net debt. In a filing on Friday, Cosan reported adjusted net income of 1.2 billion reais ($290 million), below the 1.4 billion reais median estimate compiled by Refinitiv. Revenue totaled 15.7 billion reais, down 3% year-over-year as weaker domestic demand weighed on performance across its energy and logistics divisions.
The company said higher financing costs and a stronger Brazilian real pressured margins, particularly in its fuel distribution and lubricants segments. Despite the earnings miss, Cosan reported a 12% reduction in net debt to 28.5 billion reais at the end of June, down from 32.4 billion reais in the prior-year period. Executives attributed the decline to asset sales and controlled capital expenditures.
Cosan’s logistics unit, which operates rail and port infrastructure, posted a 5% increase in EBITDA to 1.8 billion reais, offsetting some of the pressure in its energy businesses. The company maintained its full-year 2026 guidance for adjusted EBITDA between 8.5 billion and 9.0 billion reais, signaling confidence in its operational stability despite the quarterly shortfall.
Analysts at XP Investimentos downgraded Cosan’s stock to hold from buy, citing the earnings miss and macroeconomic headwinds. The shares fell 2.3% in pre-market trading following the release. Cosan’s results underscore the challenges facing Brazil’s energy sector amid volatile commodity prices and rising borrowing costs.
