Raizen Q4 Loss Hits $1.45B as Shell, IG4 Eye Brazil Restructuring

Raizen (B3: RAIZ4), the Cosan-Shell joint venture and the world’s largest sugarcane processor, reported a R$7.33 billion ($1.45 billion) net loss for the fourth quarter of its 2025/26 harvest year, almost three times the R$2.51 billion ($497M) loss it posted a year earlier.

The full safra closed with a R$27.1 billion ($5.37bn) net loss — more than six times worse than the prior cycle — and a net-debt pile of R$58.2 billion ($11.52bn), up nearly 70% in twelve months.

The results, released on Monday night, frame the home stretch of what is now Brazil’s biggest-ever extrajudicial debt recovery: a R$65 billion ($12.87bn) deal with creditors that brings Shell back as anchor capital provider and clears a path for private-equity firm IG4 to seize control by 2027.

Operationally, the picture is split. Fuel distribution — the Brazilian Shell-branded forecourt network — delivered adjusted EBITDA of R$1.7 billion ($337M) in the quarter, up 60.4% on higher volumes and efficiency gains. The sugar, ethanol and bioenergy arm continued to bleed, hit by adverse weather, a smaller cane crush and weak commodity prices.

Key Points

Key Points

—Q4 net loss: R$7.33B ($1.45B), +192% year on year; full safra R$27.1B ($5.37B), 6.5x worse.

—Debt deal: 80% creditor support locked in for R$65B ($12.87B) restructuring — country’s largest ever.

—Shell anchors: R$3.5B ($693M) capital injection; private equity firm IG4 aims to control company by Mar 2027.

—Split planned: Raizen will be carved into Energia (sugar-ethanol) and Combustíveis (fuel distribution) by end-2027.

The Numbers

01The Numbers

Below the headline loss, the company posted some real operational progress. Adjusted EBITDA rose 46% year-on-year to R$2.8 billion ($554M), the company trimmed roughly R$1.0 billion ($198M) in costs over the harvest year, and capex was cut by R$3.3 billion ($653M) versus the prior cycle.

The bottom line still went the wrong way because the gap between operating cash and debt service has widened. Net revenue fell 11.1% to R$51.3 billion ($10.16bn) on weaker sugar and ethanol pricing, while net debt jumped 69.9% to R$58.2 billion ($11.52bn). Leverage ticked down marginally from 5.3x to 5.2x net debt/EBITDA — but only because EBITDA improved, not because the debt shrank.

Indicator

Q4 25/26

Chg YoY

Net revenue

R$51.3B ($10.16bn)

−11.1%

Adjusted EBITDA

R$2.8B ($554M)

+46%

Fuel distribution EBITDA

R$1.7B ($337M)

+60.4%

Net loss (quarter)

R$7.33B ($1.45bn)

+192%

Net loss (full safra 25/26)

R$27.1B ($5.37bn)

6.5x

Net debt

R$58.2B ($11.52bn)

+69.9%

Leverage (Net debt / EBITDA)

5.2x

−0.1x

Live Company IntelligenceRaízen S.A. — the full investor dossierInside: live share price, market cap, three-year financials, valuation, ESG and peer benchmarks — plus the latest Rio Times coverage.

Rio Times · Live Ticker Intelligence

Raízen S.A.

RAIZ4 · B3 São PauloUtilitiesUtilities – Renewable

Share price · live

R$0.40

▼ -2.44% today

Market cap

R$4.2 bn (US$818.7 mn)

1.3 bn shares

P / E

—

EPS -2.15

Dividend yield

—

The company

Employees

40,000

Headquarters

Rio de Janeiro

Listed since

—

Website

Raízen S.A. operates as an integrated energy company in Brazil, Argentina, rest of Latin America, North America, Asia, Europe, and internationally. The company trades in and markets fossil fuels and franchises network of service stations under the Shell brand name. It also engages in the production,…

Financial performance · FY · BRL

RevenueNet income

2023

R$245.8 bn

R$2.4 bn

2024

R$220.5 bn

R$520.7 mn

2025

R$255.3 bn

−R$4.3 bn

Net income declined to R$-4.3 bn in 2025, from R$2.4 bn in 2023.

Valuation & returns

EBITDA margin

0.3%

Net margin

-9.6%

Return on equity

-231.3%

Price / book

0.47

Enterprise value

R$65.1 bn (US$12.6 bn)

Revenue growth · YoY

-9.7%

Latest earnings

Q4 2025 — reported EPS -1.50 vs -0.08 expected

Missed −1,775%

Peers & comparators

CSAN3 · Cosan

▼ -1.33%

PETR4 · Petrobras

▲ +0.21%

UGPA3

▲ +2.81%

From The Rio Times

Latest coverage · 20 Jun 2026

Shell-Backed Raízen Sells Its Argentina Fuel Arm to Mercuria

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Data: EODHD Fundamentals & live feed · The Rio Times Ticker Intelligence

Why It Matters

02Why It Matters

Raizen launched on B3 in August 2021 with a R$76 billion ($15bn) valuation, billed as the vehicle that would lead Brazil into a green-fuels boom on the back of second-generation ethanol. Five years on, RAIZ4 trades around R$0.42, the market cap has collapsed to R$4.45 billion ($881M), and the stock has already been ejected from the Ibovespa.

CEO Nelson Gomes, the former Cosan holding chief brought in by chairman Rubens Ometto in November 2024 to accelerate deleveraging, has overseen roughly R$5 billion ($990M) in asset disposals, exit from the Oxxo convenience-store JV, and the $1.42 billion sale of the Argentine downstream business to a Mercuria-led consortium. The Q4 numbers say it was not enough.

On March 11 the company filed for extrajudicial recovery covering R$65 billion ($12.87bn) of unsecured debt — bigger than any prior court-supervised Brazilian restructuring. Eighty percent of creditors have now signed on.

The plan converts 45% of covered claims into Raizen units at R$0.50 ($0.10) each, above the current share price, refinances the remaining 55%, and brings in R$3.5 billion ($693M) of fresh capital from Shell plus up to R$500 million ($99M) from Ometto’s Aguassanta vehicle.

Private-equity firm IG4 — already co-controller of Braskem alongside Petrobras — has tabled a non-binding offer to buy 50%+1 of the converted claims and target control by March 2027, with Shell likely keeping the fuel-distribution arm and IG4 inheriting the sugar-ethanol business when the company splits in 2027.

The Bull Case

What buyers at $0.42 see

Operations recovering. Adjusted EBITDA +46% YoY; cost cuts of R$1B ($198M) and capex cut of R$3.3B ($653M) are showing through.

Restructuring nearly done. 80% creditor support, Shell capital backstop, judicial approval likely in months — the worst headline risk is behind.

Conversion floor. Debt-to-equity at R$0.50 ($0.10)/unit sets a quasi-floor; if IG4’s bid succeeds, governance gets cleaner.

The Bear Case

What sellers point to

Massive dilution. Converting R$29B ($5.7bn) of debt at R$0.50/unit means many billions of new shares — existing holders face severe equity loss.

Commodity cycle unkind. Sugar and ethanol prices remain weak; corn-ethanol competition is structural, not cyclical.

Negative cash burn. Despite asset sales, R$58B ($11.52bn) net debt still grows; financing costs from Selic at 14.25% remain a drag.

Frequently Asked Questions

FAQFrequently Asked Questions

Why is Raizen’s loss so much bigger than the prior year if EBITDA improved?

Operationally Raizen actually did better in Q4 — adjusted EBITDA rose 46% to R$2.8 billion ($554M), the fuel-distribution arm posted a 60.4% EBITDA jump, and cost discipline removed R$1 billion ($198M) from the run-rate over the safra.

The bottom line still deteriorated because finance expenses ballooned with Selic at 14.25%, the safra was hit by adverse weather that reduced cane crushed, and the company booked further write-downs and provisions tied to its restructuring. Quarter three of the same safra, ended December, alone produced a R$15.65 billion ($3.10bn) loss on impairment charges.

What does the R$65 billion ($12.87bn) debt restructuring actually do?

The extrajudicial recovery — Brazil’s largest ever — covers Raizen’s unsecured financial obligations, including foreign bonds, debentures and agribusiness receivables (CRAs). Roughly 45% of covered claims will be converted into Raizen units at R$0.50 ($0.10) each, made up of one ordinary and one preferred share.

The remaining 55% will be refinanced with new debt instruments on longer terms. Shell is putting in R$3.5 billion ($693M) of fresh capital, with Cosan’s Aguassanta vehicle potentially adding up to R$500 million ($99M). Eighty percent of creditors have signed on, above the 50% legal threshold for judicial approval.

What is IG4 trying to do?

IG4 Capital, the private-equity firm that recently took co-control of petrochemical giant Braskem alongside Petrobras, has submitted a non-binding offer to acquire majority ownership of the credits being converted into Raizen equity. Its goal is to control 50%+1 of the converted equity by the time the extrajudicial recovery closes — targeted for March 2027.

That would let IG4 sit alongside or replace Cosan and Shell at the top of the cap table. If the offer advances, the company’s planned split would likely leave Shell with the fuel-distribution business and IG4 with the sugar-ethanol-bioenergy arm.

Updated: 2026-06-30T09:00:00-03:00 by Rio Times Editorial Desk

Raizen Q4 loss | RAIZ4 | Cosan Shell joint venture | extrajudicial recovery | IG4 Capital | Brazil sugar ethanol | The Rio Times