By Brazil Stock Guide – Cosan S.A. (B3: CSAN3; NYSE: CSAN) reported a net loss attributable to controlling shareholders of R$1.6 billion in the first quarter of 2026, improving from a R$1.8 billion loss a year earlier. But the result still showed a company under pressure to turn portfolio value into cash at the holding level.
The quarter was affected by about R$1 billion in impacts related to the early repayment of bonds due in 2029, 2030 and 2031. Those effects hit financial expenses and deferred income tax, with part of the impact having no immediate cash effect.
Debt pressure
Cosan’s expanded net debt at the corporate level ended March at R$11.5 billion. That was down 34% from a year earlier, helped by the capital increase completed at the end of 2025, but up 18% from the fourth quarter.
The increase reflected the lack of relevant dividends in the period and payments tied to early debt and derivatives settlements. Cash, equivalents and marketable securities at the corporate structure fell to R$7.7 billion.
The key number was the debt-service coverage ratio. It fell to 0.4x, from 0.9x in the fourth quarter and 1.2x a year earlier. A ratio below 1.0x means the cash received by the holding was not enough to cover debt service on a trailing basis.
Dividend gap
Cosan received only R$36 million in dividends and interest on equity in the quarter, down 98% from R$1.47 billion a year earlier.
That matters because Cosan is a holding company. Its debt sits at the parent level, while most of the operating cash is generated by investees such as Rumo, Compass, Moove and Radar. The assets may be valuable, but the holding still needs dividends to service debt comfortably.
Portfolio resilience
The operating portfolio was better than the net loss suggests. Rumo posted adjusted EBITDA of R$1.75 billion, up 7%, helped by a 25% increase in transported volumes. Compass reported R$1.33 billion, up 2%. Moove delivered R$236 million, up 1%.
Radar was weaker, with adjusted EBITDA down 27% to R$103 million, pressured by lower prices for sugarcane-related assets and soybeans, as well as a tougher comparison base.
Raízen effect
Raízen no longer weighs on Cosan’s accounts in the same way. The company stopped recognizing Raízen’s effects after the carrying value of the investment was reduced to zero at the end of 2025.
That helped Cosan’s equity-method result improve to R$420 million, from a negative R$766 million a year earlier. It also made the result cleaner. But it does not remove the broader concern around capital needs, asset sales and investor perception of the group.
Still rebuilding
Cosan has simplified part of its structure by selling its remaining Vale stake, unwinding derivatives and prepaying debt. Those moves reduce complexity, but they also consumed cash and created financial impacts in the quarter.
The first-quarter result was therefore less about a recovery in earnings and more about the cost of balance-sheet repair. Cosan has strong assets. The question is whether those assets can generate enough recurring cash for the holding to make deleveraging look sustainable.