(MENAFN- The Rio Times) Brazil's corporate pulse this quarter comes through three very different lenses. Porto Seguro shows how a diversified financial group can compound returns even as auto insurance remains competitive.

Even illustrates the hard, unglamorous work of a real-estate turnaround-tidy the portfolio, push sales, keep cash on a tight leash.

São Martinho, a bellwether in sugar and ethanol, underscores how global commodity prices can humble even the most efficient operators, demanding caution on capex and hedging.
Porto Seguro - Insurer-Bank-Services Platform Tightens The Screws
Who they are and what they do: one of Brazil's leading insurers, now with growing health, bank, and services arms.

The story: net income rose 13% to R$ 832 million ($154 million) on about R$ 10.5 billion ($1.94 billion) in revenue, with a stronger treasury line delivering R$ 383 million ($71 million).

Insurance posted a 32% return on equity; non-insurance businesses lifted their share of total profit to 44%, showing diversification is no longer a side project. Administrative efficiency improved to 10.7%.

For 2025, management tightened the G&A Vertical to 10.0%–10.5% and kept the full-year financial result at R$ 1.2–1.4 billion ($222–$259 million), with a 28%–32% effective rate.

The story behind the story: Porto is deliberately shifting earnings weight away from the cyclical auto line into businesses where cross-sell, fee income, and capital-light models can keep returns high and steadier through the cycle.


Even - Sales Engine Back On, But Cash Discipline Is The Real KPI
Who they are and what they do: a São Paulo-focused residential developer.

The story: Even flipped to a quarterly profit of R$ 90 million ($17 million) after last year's loss, helped by stronger apartment sales and client-financing income following the exit from Melnick.

Gross profit reached R$ 174.2 million ($32 million) with a 37% adjusted gross margin; net revenue climbed to R$ 528.8 million ($98 million).

Operating expenses fell to R$ 75.2 million ($14 million), with G&A at R$ 28 million ($5 million) and commercial expenses at R$ 34.2 million ($6 million).

Financial result turned positive at R$ 26.9 million ($5 million). Still, the quarter consumed R$ 93.5 million ($17 million) of cash; Even closed with R$ 813 million ($151 million). It bought five plots with launch potential of R$ 2.0 billion ($370 million).

Net debt is R$ 298.1 million ($55 million), or 13.1% of equity. São Paulo Bay-a luxury launch with VGV of R$ 1.5 billion ($278 million)-is half sold; net sales hit R$ 821 million ($152 million); inventory is R$ 3.6 billion ($667 million).

The story behind the story: the commercial machine works, but the true test is converting early momentum into sustained sell-through while holding construction costs and keeping working capital tight.
São Martinho - Cost Leader Playing A Long Game In A Weak Price Year
Who they are and what they do: a top sugar-ethanol producer.

The story: 2Q FY26 profit slipped 5.9% to R$ 176 million ($33 million) as sugar and ethanol prices stayed soft.

Management trimmed cane-crush guidance to 22.0 million tons and cut capex 5.3% to R$ 2.8 billion ($519 million) to protect cash after R$ 743 million ($138 million) in working-capital consumption; leverage stands at 1.6x EBITDA.

The product mix targets 51% ethanol (915 million liters) and 1.42 million tons of sugar. Only 101,000 tons-about 10% of expected own sugar output-are hedged for 2026/27, signaling a bet on better prices ahead.

The story behind the story: São Martinho 's edge is cost and execution, but with spot sugar having dipped below levels that excite producers, free cash flow depends on price relief and disciplined capex, not volume heroics.
Bottom line
One quarter, three lessons: scale plus diversification can compound value; real-estate turnarounds hinge on cash velocity, not just headline sales; and in agribusiness, prudence on investment and price risk often wins the season.

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