Tres Tentos (TTEN3.SA): 2Q26 Preview: Lower figures ahead, a likely result from the worsening in soybean crushing margin

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Tres Tentos (TTEN3.SA): 2Q26 Preview: Lower figures ahead, a likely result from the worsening in soybean crushing margin

Tres Tentos (TTEN3.SA)

28 July 2026 Citi Research

We decrease our 2Q26 estimates, mainly factoring lower biodiesel prices and lower sales volume of soybean meal, biodiesel,

and ethanol, since the company faced a delay to start its operations in corn ethanol industry, and we believe the company was

not able to run its soybean crushing units at an optimum level, since it was ramping up during the quarter, while the company

took longer than expected to obtain ANP licenses to increase biodiesel production. That said, we expect TTEN to print industry

gross margins at 14.5% (-7.2.p.p. YoY) in 2Q26.

Regarding the ag.inputs segment, we expect the company will increase the sales volume on the maturation process of recently

opened stores, higher market share, and good results in the sale of inputs to canola crop. However, we expect a similar margin

on YoY basis (+0.1p.p.; 18.3%), given the relevant sales mix of fertilizers in the period. On grains segment, we expect the

company to take advantage of the higher market share/covered area of its stores and from the record harvest of soybeans in

the country, which may have underpinned a record result for the 2Q, with a slight YoY increase in gross margins (+1.4p.p.;

8.5%), given a better sales mix with higher barter sales.

Furthermore, as we commented in a previous note, we see the risk of a downward revision in its operational guidance in the

upcoming weeks of ethanol and biodiesel. On ethanol side, the company faced some delays to start the operation of its

industry. On biodiesel, the current guidance was factored under the scenario of the implementation of 16% mandatory