Cosan's Strong First Quarter Performance Despite Challenges
Cosan, a leading energy company in Brazil, reported a strong first quarter of 2026 despite facing significant challenges. During its quarterly earnings conference call on May 15th, Cosan's executive board presented an overview of the company's financial performance and operating highlights for the period.
According to Mr. Fernando Tinel, Cosan's CEO, the company reported a net loss of BRL 1.6 billion in Q1 2026, which was an improvement of BRL 0.2 billion compared to the same period last year. This result reflects the impact of approximately BRL 1 billion related to the prepayment of the 2029 and 2031 bonds recorded in financial results and deferred income tax lines.
Cosan's expanded net debt increased by 18% quarter-on-quarter, mainly due to the absence of relevant dividends in the period and the effect of the debt prepayments carried out throughout the quarter. However, when compared to the same period in 2025, it decreased by 34%, reflecting the proceeds from the capital increase received in the last quarter of that year.
One of Cosan's investees, Rumo, posted record transported volumes up 25% during Q1 2026. This was highlighted as a strong performance, with the northern operation contributing to the dilution of fixed costs and expenses, as well as market share gains in its operating regions. As a result, reported EBITDA was 7% higher than in Q1 2025.
At Compass, the company saw slightly higher distributed gas volumes and EBITDA up 2% versus Q1 2025, supported by an improved distribution mix and higher volumes at Edge. The startup of the new off-grid B2B LNG operations and OnBiós biomethane plant was also highlighted.
Moove, another investee company, continues its post-fire optimization cycle. The period was marked by higher sales volumes and a 10% increase in lubricant sales, mainly in South America, resulting in an EBITDA slightly above the prior year period. Market share recovery reaching 16.4% in Brazil was also reported.
Despite these strong performances, Cosan's interest coverage ratio decreased to 0.4 times versus 0.9 times in the previous quarter, mainly explained by lower dividends received over the last 12 months as a result of Compass' capital reduction.
Cosan's quarterly earnings call provided insight into the company's performance and highlighted its resilience despite challenges. The company's focus on optimizing its operations and investing in new business segments demonstrates its commitment to long-term growth and success.
