3Tentos "As noise fades, upside becomes clearer - reiterate Buy" (Buy) Enfeldt

Research evidence excerpt

3Tentos "As noise fades, upside becomes clearer - reiterate Buy" (Buy) Enfeldt

ss margins and 12/28E 2.75 2.71 -1 2.18

SG&A showed a strong improvement and signalled hopes of stronger sustainable

margins (arguably investors will still want to see another 1-2 Qs of this level). When Matheus Enfeldt

Analystlooking at the combined Industry + Grains gross profit net of hedge results and

matheus.enfeldt@ubs.com

logistics expenses, TTEN delivered a margin of 9.4%, a significant improvement

+55-11-2767 6975

from 2.6% in 4Q25 and closer to the LT average of ~7.5%. In our view, this helps de-

risk the investment case and suggests that the previous spike in logistics costs was Victor Modanese

Associate Analystlargely one-off and should not be extrapolated by investors.

victor.modanese@ubs.com

+55-11-2767 6008

What will be the contribution from corn ethanol this year?

Tasso Vasconcellos

Investors typically anchor their mid-term expectations for TTEN's operational

Analyst

performance on company guidance. However, this may not hold true for the corn tasso.vasconcellos@ubs.com

ethanol segment in 2026. The company announced on May 20 that the plant has +55-11-2767 6683

started operations, vs prior expectations of an ~ early 2Q start. This slight delay

renders the previously guided corn crushing volume of 719k tons unfeasible in our

view. Even assuming full utilization - 24/7 operations at the plant's capacity of 2.8k

tons per day - the maximum achievable volume would be ~630k tons. Given there's a

learning curve for corn crushing plants, and we have seen in the past similar

Highlights (R$m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 8,999 12,826 16,424 20,109 25,505 28,751 32,025 34,600

EBIT (UBS) 442 1,245 539 1,082 1,730 1,911 2,229 2,320