Power plants are better prepared to face the current crisis in the sector, points out the bank.

Sugar and ethanol plants are in a better financial position and more prepared to face this moment compared to the last crisis in the sector, ten years ago. The assessment is part of a study by Itaú BBA, which analyzes 48 groups responsible for about 53% of the milling in the Center-South. However, the institution recognizes that the scenario for the 2025/26 crop is challenging and tends to continue pressuring results throughout the 2026/27 season. The bank emphasizes that the market is going through a turning point that requires attention, even though financial conditions are healthier. According to the survey, the sector should start the 2026/27 crop with an average liquidity index of 2.7x, double that observed in the 2015/16 crop (1.3x). Leverage (Net Debt/EBITDA) is now 51% lower, reaching 1.8x. The Itaú BBA study considers that the improvement in governance, risk management, and profitability has increased the producer's access to long-term credit lines at more competitive ...