Morning, everyone, and welcome to Três Tentos videoconference call to discuss results relative to Q3 2025. Joining us today are Mr. João Marcelo de Monsel, CEO and IRO, Mr. Luís Osório de Monsel, Executive Chairman, Ms. Cristiane Costa, CFO, and Mr. Eduardo Motta, IR Manager. Note that this videoconference is being recorded and will be made available at the company's IR website, where the respective slide deck can also be found. For those who need simultaneous translation, this feature is available through the interpretation icon represented by a globe located at the bottom center of your screen. For those participating in English, you can also mute the original Portuguese audio by clicking on "Mute Original Audio." During the event, all participants will be connected in listen-only mode as the company makes its remarks. After that, we'll begin our Q&A session.
Questions can be sent via audio by clicking on the raise hand icon at the bottom of your screen. To send questions by text, simply click on the Q&A icon also located on the bottom of the screen and type in your question. Before we proceed, we'd like to clarify that any forward-looking statements made during this presentation concerning the company's business outlook, operating and financial projection and goals, as well as Três Tentos' future growth potential, are forward-looking statements based on the current expectations and beliefs of the company's management. These forward-looking statements involve risks and uncertainties and therefore depend on circumstances that may or may not materialize. Investors should have in mind that general economic conditions, agribusiness dynamics, and other operating factors may affect Três Tentos' future performance and thus lead to results that will differ considerably from those expressed in such forward-looking statements. I'd now like to turn the floor over to Mr. João Marcelo de Monsel. Please, Mr. de Monsel, you may proceed.
[Foreign language]
Thank you.
[Foreign language]
First of all, thank you and good morning, everyone. Thank you for your time, your attention once again, as we present our Q3 results for 2025. I'd like to start by emphasizing the strong growth the company has been experiencing in terms of revenue. In this third quarter of 2025, we have reached an amount close to BRL 5 billion in revenue and a significant growth when compared to Q3 2024, a growth of about 43%. What are we going to be talking about today? We'll be highlighting some of those numbers. Of course, as I said, we'll start by emphasizing the company's significant growth. That growth was driven not only by certain segments, but it happened across the board, across all segments where the company operates.
That, of course, reflects on the company's numbers, and of course, it comes from a very good crop, both in corn and in soy in the Sierra Madre Grocer, which helped boost the volume of grains. That strong crop has also helped with the sales of inputs and other raw materials. We also highlight in this call our hedge operations, which have contributed to the final bottom line and also have shown how we have been able to mitigate risks in pricing. Also, we're going to be also touching upon our industrial expansions, which we've been doing for the past few months, in particular in 2025. The expansion, some of it is already up and running, some are under construction, and we expect to see them up and running in the coming months.
On the next slide, slide number four, we can see a bit more detail around the numbers, a breakdown of our net revenue in the quarter and in the year-to-date numbers, especially year-to-date nine months. The company moved from BRL 8 billion to above BRL 12 billion in net revenue. In the first nine months, we are already close to reaching the revenue number that we reached for the whole year of 2024. With the respective indicators always showing an upward trend, revenue as it can be seen on the chart, but also gross profit, EBITDA, net income, all of those numbers have been growing steadily and significantly year-to-date 2025. On the next slide, slide number five, we shed some light on the different segments where the company operates: inputs, seeds, and industrial operations.
Starting with inputs, we saw a quarter which was very strong, just as the rest of the year was very strong, very good performance throughout the nine months. This quarter, in particular, we grew the volumes of sales. We also grew net revenue, net profit in absolute terms, and we have also grown the margins. For inputs, performance has been outstanding. We have resumed a point where it can deliver strong margins, helping consolidate our market share gain across the regions, especially the new regions, Rio Grande do Sul, consolidated, and then gaining market share in the south, but also gaining market share as we expand towards the Araguaia Valley. As for the grains segment, as I mentioned before, it has also been helped by a good crop in Araguaia Valley.
Also had strong performance, a growth in volume, a growth in revenue, as we also maintained margins, margin growth, which is, of course, vital for this segment. It's also important to highlight, as we talk about grains, that in addition to Rio Grande do Sul and Mato Grosso, the company has already started working regionally to originate grains. For 2025, we have opened three new offices, regional offices, one in Uberlândia, Minas Gerais, one in Goiás, Rio Verde, and one in Pará, offices to help us originate more grains. That is part of our strategy to optimize our operations, to get to know new markets and explore new markets and new regions across Brazil. It's also important to highlight under the industry pillar that out of the three segments, industry had the most challenging quarter. Still, we saw some growth coming from expansions.
We grew volumes for soybean meal, and we also saw a growth in biodiesel. As I said before, we saw some challenges on that front, especially concerning market dynamics. We faced a quarter in which premiums for soybean in Brazil were high. I remember in our Q2 earnings call, we saw that happening already in terms of premium. We expected that to sort of dilute as we had an agreement between China and the U.S., but that never happened in Q3. It only happened just recently, right? Early in October, so it is not yet reflected. Those high premiums combined with the soybean meal prices under duress in Chicago, that led to a margins dynamic which was tighter, if you will. As I said also earlier, the main highlight is that our hedging policy worked really well and helped us reach a positive result.
It's important to highlight that. Those are the main highlights, right, for the quarter. That includes the good hedge policy we've put in place. Before moving over to Cristiane, we'll be going into more detail. I think it's important to highlight for this slide the strength of our ecosystem. Três Tentos ecosystem is truly strong. Different segments combine, complement each other, and help sustain the whole business, bringing about resilience and consistency for the company's results quarter on quarter. As I said before, I turn the floor over to Cristiane, who will be shedding some light on the numbers. Over to you, Cristiane.
[Foreign language]
Good morning, everyone. I'll be talking a bit about our financial numbers. We have closed Q3 with a net operating revenue of BRL 4.3 billion and an EBITDA adjusted by market values of BRL 166 million, leading to an adjusted margin of 13.3%. That's our operating result. When we add to that result the effect of our hedging contracts, we have a financial result of BRL 202 million additional. When we add those two effects together, we have what we call adjusted EBITDA with liquidated contracts to the tune of BRL 368 million compared to BRL 356 million that we had in Q3 last year. We closed the quarter with an EBITDA margin, including those effects, of 7.4%. That's where we can see the effect mentioned by João Marcelo just now.
When we had a decrease of foreign exchange rates compared to the moment when those contracts for grains and meal, when they were signed, where we had higher interest rates, we now see a dropping interest rate or foreign exchange rate. The same thing is happening with the price of meal. We see this effect reflected in the operating results. When we look at the year-to-date numbers and look at the bottom part of the chart, we see adjusted EBITDA plus the effect of liquidated contracts throughout the year until now, we see that that margin is quite similar, moving from 6.7% to 6.5%. That is quite reassuring because it means that our hedging strategy is in tune with our operating strategy. When we look at those nine months, we see that that financial number is 150. That means that in previous quarters, we had an opposite effect.
When we had contracts that had been signed at a different foreign exchange level, we had an increase earlier in the quarter. That is an effect that we understand like this. We have to read those numbers, taking all that into account. Moving to the next slide, when we look at our CapEx, how we were able to generate cash and transform that EBITDA into results, positive results, we see the effect of our net debt going down. We have, in year-to-date, a net debt of BRL 1,806 million to BRL 1,579 million. For the first time, we are breaking down between net debt consolidated terms and the company's net debt without Tentos Cap, our financial arm. Our Tentos Cap tends to have a financial balance sheet, and its credit lines are read as net debt in the company's balance sheet. Operationally speaking, we have BRL 1,306 million.
If we look only at Três Tentos Agroindustrial net debt excluding Tentos Cap and compare that with the generated EBITDA for the last 12 months, our net debt is 1.45 times net debt over EBITDA, which is a number we understand, which is very close to what we had planned for the year. We had a very high CapEx, year-to-date 12 months, and you can look at the right-hand side of this slide, a CapEx of BRL 1.629 billion. In other words, a very relevant CapEx, which was made for the past 12 months. We understand that this is the peak of CapEx as we move towards the next quarters. Those numbers should resume lower levels, which allow us to deleverage the company even further.
To understand the dynamics, I'd like to concentrate on the next slide, slide number eight, where we have, throughout those nine months, how we managed to generate cash. BRL 830 million generated. A good part of it were invested in Porto Alegre do Norte, over BRL 800 million in investments, physical investments, all our expansions in the industry in Vera, Cruz Alta, Ijuí, and also reorganizing our inventory. We closed Q3 with a very good volume in inventory, and it will be important throughout the fourth quarter and the first quarter before we start harvesting soybean in Mato Grosso and in the south. We understand that inventory is also cash, a very important net component of our balance sheet. We were able to generate cash throughout Q3. If we look at the DFC, something like BRL 225 million, that's quite positive. We are now generating net cash.
All of that working in a moment where the company is making massive investments, which will become EBITDA and cash down the road. To speak about the expansions in Porto Alegre do Norte, I turn the floor over to our Chairman, Luís Osório de Monsel. Sorry. Over to you, Luís.
[Foreign language]
I think you are on mute.
[Foreign language]
Thank you, Cristiane. Thank you all for participating in our call. Good morning. For us, it is a source of joy to be able to share that picture with you. This was taken a few weeks ago. Our industry that we are at the final phase of construction in the Araguaia Valley in Porto Alegre do Norte. We plan to conclude works in the first quarter of 2026. An investment we've been making to get that plant up and running. It's close to that. We'll benefit 2,800 tons of corn a day. That is quite reassuring. To work also along ethanol, in addition to soybean meal, in addition to biodiesel, soy oil. We are now also going to be working with ethanol from corn and also with DDG. So we are covering all the commercial fronts for those grains. I'd say we have the whole prep in place for that plant to really take off as of early next year.
Ready to go forward. Of course, providing results for the company. It is important to emphasize that for the first months, the first months we are ready with all the raw materials there in stock. We are more than ready to reach the first corn crop or second crop of corn in May and June and July next year. All ready for that to happen. That is the final phase for that plant. On the next slide, we also have a couple of pictures of what we have been doing in other plants. Our industries in Ijuí, Cruz Alta, and Vera, operationally, all of them have gone through maintenance work, improvement works, and expansion works. Cruz Alta will remain as a crushing plant for 2,000 tons of soybean. Sorry, Ijuí.
Ijuí will continue to crush 2,000 tons of soybean per day, but we'll move to 1.5 million liters of biodiesel a day. That will give us a more consistent fund for us to maintain the oil in the south so that Cruz Alta and Ijuí producing that oil for us to produce biodiesel. It's also important to highlight what we did in Ijuí. We are now finalizing works. I think by next week, we'll start canola processing. We had a very positive canola crop in Rio Grande do Sul. We have been sharing that with you, with the market, our expectation for Três Tentos for that crop. It is the second crop in Rio Grande do Sul, very much needed for the state, canola as a second crop. And we have found a product that is really adapted to the soil. We planted 210,000 hectares of canola.
Três Tentos will originate until the end of this cycle about 90,000 tons. We will start for the next month and a half of the year and the first months of next year, we will process in Ijuí only for canola. The canola meal is already sold. The whole oil, those 40% of oil, which we will extract from the grain, will be destined to biodiesel. As for Cruz Alta, the expansion, we reach 4,000 tons a day in terms of soybean crushing. All the oil will also be allocated to biodiesel. Not only expanding, but also maintaining our industrial park and also modernizing, ramping up the area. We are conducting that work well. The plant is operational. In Vera, where we had our largest expansion, we are close to the ramp up to reach 4,800 tons per day of crushing.
Expanding also biodiesel, reaching 1,500 cubic meters of production, rather. Those three pictures, I'd like to share them with you because they summarize the good path those factors are threading. By the year's end, they'll be fully operational and we'll be able to reach those production numbers, 10,500 tons of crushing soybeans per day. On the next slide, we have a job to look for 2025. We consider 2025 to have been a very positive year for Três Tentos. Several challenges were faced and overcome. We continue to open stores, always believing that we will only do that after having really surveyed the regions. We will establish our stores for inputs. We try to identify the closest inventory area, what grains areas will support, what port will support. Três Tentos has a growth plan, which is quite well structured.
We also try to find more efficiencies. We need to be close to the best farmers. That is a search that we will never leave aside, trying to get close to clients, trying to generate value to farmers. Those farmers are our partners. They are different. We see, irrespective of challenges around results and prices, what we have managed to do was to become partners with those farmers. We have been able to manage outstanding debt, accounts receivable. We have been keeping a close eye and doing that well. We do that because we are close to our customers. Of course, we will not forget about our execution capacity as we expand, as we move forward, as we have seen in our pictures, more stores. The capacity of our team to bring about new products, just as we are doing with canola.
What we hear at the unit level, what we hear from people is that at the very least, that 200,000 hectares for canola will double next year. Very good outlook for Rio Grande do Sul for the financial health of our partner growers. We have Tentos Cap, our financial arm, which brings quality to our portfolio with a very good structure to analyze and grant credit. Every credit granted to growers, the algorithms are thoroughly analyzed, surveyed, and they receive guidance from our side so that they can create this financial culture, financial education in the field. Tentos Cap is a great point of contact for growers. That happens throughout different moments, right? Those growers remain our partners in the long run. Also, a very positive scenario for biofuels. I'd like to mention to our close friend, Mr.
Lindon, the CEO of Ipiranga, and together with our project team, Ipiranga's project team, we have formed this partnership with Ipiranga where we did something very innovative in Brazil. We are connecting biodiesel to a distribution base run by Ipiranga. It is a very positive moment for us. Of course, there is a chance of that expanding throughout Brazil, where we are starting now in the Midwest side of Brazil. It is a mid to the long run view working together for us. It is very nice when we see that we can reach from the field to the tanks, to the fuel tanks, and when we reach the field from the table as well. What we do here at Três Tentos is a work that leaves us all very excited. I would like to reinforce that we are reassured when we look at the financial and operating results together.
Earlier today, I was talking to my colleagues here when we saw the lines, we saw operating results at this level, and then the financial levels, numbers on the other side. We always have that reassuring look at things. Quarter on quarter, we will come and share positive results with you, always trying to do the best to show growth numbers with the best share with the appreciation of our clients, suppliers, of every stakeholder that are present in our ecosystem. We continue to follow this strong path based on partnership, execution, and based on our operating efficiency. Trabalho forte, por isso que eu falo às vezes é meio teoria, mas sometimes it sounds a bit theoretical, but for us, it's quite practical.
We do put in practice all the processes and technologies that I mentioned around, of course, a type of governance that is really positive, doing things increasingly better so that we can provide support to this significant growth we have been enjoying. Of course, knowing that Brazil is a very, it is a big agricultural powerhouse, right? That does not change what we do. Brazil will continue to be this powerhouse in this field. We are, so once again, thank you for your time, your attention. I now turn the floor over to Q&A. Thank you. Thank you once again. Agora, we will now start the Q&A session. Questions may be asked via audio by clicking on the raise hand icon at the bottom of your screen. At that time, a request to activate your mic will appear on your screen.
To send questions in writing, simply click on the Q&A button also found on the bottom part of your screen and type in your question. Our first question comes from Isabela Simonato, sell-side analyst from Bank of America. Please, ma'am, you can continue, please. G ood morning, everyone. Luís, João Marcelo, Cristiane, good morning. Thank you for taking my questions. I'd like to explore a bit more the industry margin dynamic, as you rightly said. Even though you had a more challenging scenario in the spot market, your hedging policy was quite effective in the quarter. First question, can you give us a breakdown of how much of those BRL 202 million can be attributed to the industry so that you can try and reconcile with the gross margin? Number two, what do you expect for Q4 on that front?
We saw some things changing as China resumed purchases from the U.S. for soy. So what do you expect to see in terms of crushing margins for Q4? Thank you. Okay, good morning, Isabela. Thank you for your question. A gente faz a maioria do nosso hedge, eu vou mostrar. Most of our hedging. Depois o João Marcelo pode me contar. João Marcelo can jump in later, but we usually hedge using the soybean complex, especially because that's the one that has a relationship which is quite close with the Brazilian market, with the world market, where we see the impact coming from China-U.S. agreement, for example, or a tariff war. We see the consequences right there. In Chicago, we see two points up today in January 1150 looking forward. So that has a direct relationship with the Brazilian market.
Of course, only the bases remaining as one of the fronts we work on in the everyday operations. What I can tell you is that we are confident. Just as we saw in the first half of the year, Isabela, we saw negative financial results. If I'm not wrong, at around BRL 90 million operating results, which is quite positive. We were asked, how did you have a negative number operationally? We said this is because we have an offset on the financial side. In Q3, it's the opposite. A little bit over BRL 200 million in positive financially and a more adjusted operational or operating numbers. That hedge is done at the end of the day, every day. I've mentioned that before. I've shared that with you before. We are quite disciplined around that. The whole team is to be congratulated.
Our trading team, our commodity stream is to be congratulated. We're all buying corn, buying soy, buying wheat, and distributing those products either as grains or as industrialized products. Of course, we observe those industry margins in Q3 of 12%, but of 18% in year to date, which brings us to a more normal level in terms of margin. That is what we've seen in the first nine months. Even though one quarter may have been more operational and another more financial, we can be reassured that the company is working in a disciplined manner and share that with our customers and with the market. It's difficult.
I would not break down across meal, biodiesel, corn, soy, of course, we have that quite well broken down and fragmented, but it is important for us now here to share with the market the overall result of this well-structured work that the company does within the soybean complex, as I call it, where we have most of our revenue from coming, right, from grains and industry. Marcelo can perhaps complement what I have said. I can talk about the fourth quarter too. Isabela, good morning. As for the more structural side of the margins, as I just showed, we had some factors that pressured our operating margin, which was offset by the hedging policy. What do you expect? Do we expect for Q4? Today, we see a structural scenario where we see the premium for soy at a low when compared to Q3.
We have a meal price which recovered in Chicago, so it is up, soybean meal. We are working around Q4 with the B15, which is an increase in the mix. This will reflect across the quarter. In addition, in the last half of the quarter, next quarter, we will see the canola crushing activity. Those four factors combined will present a trend to improve our margin levels going forward. It is a structural change, as I mentioned. Tá claro. Okay. Thank you. If I follow up, if I may? When I asked about the impact of those BRL 202 million, I understand that is a function of the hedging for industry and the grain trading. If there was a way for that to be allocated across the different divisions from the point of contribution to the gross margin, if we were going to reconcile that, that is all.
Então, ok, entendi. Okay, okay, I understand, Isabela. Como eu falei, a gente, as I mentioned, we want to have the overall picture, but you are correct, you are correct. We manage that, we manage industry, we manage grains separately, and we know exactly where to allocate, where to buy this grain or that grain, either for the industry or for export or for internal market, whatever. We know exactly what happens to the detail. Okay, thank you. Thank you. Our next question comes from Guilherme Palhares, sell-side analyst from Santander. Over to you, sir. Good morning. Good morning, everyone. Luís, João Marcelo, Cristiane, thank you. I have a couple of follow-ups to Isabela's question about industry, even though the retail numbers are quite positive. My question is, given that we do not have a hedge account, I'd like to better understand when we project the industry numbers.
I'd like to hear from you your strategy around your soybean inventory for industry so that we can better understand the cost for that. How can we compare that with the spot price, average price? Your strategy around inventory. Number two, within industry, Luís, you just mentioned the canola in Rio Grande do Sul seeing a very important growth as we're going to be having that in the company's results in Q4. I'd like to hear from you about the crushing margins. How will that change? How will that change the dynamics when compared to soybeans, margins, and so on? Some subsidies, if you may, for us to be able to think about crushing margins. Is it very different from soybean? What kind of contribution will it provide? Thank you. Okay, thank you, Palhares, for your questions. [Foreign language]
For canola, we are still starting, right? Only first steps. We have just completed adapting the plant for that. We, of course, are also modernizing the plant. This will start in the coming days so that we can see in practice the percentage, the numbers, the real margin we'll have. Of course, we do have the first calculations ready, but I'd like to invite João Marcelo, who's closer to that, to answer the question for you. As for canola, ela produz... Canola produces twice as much oil as soybean. You have 19%-20% of oil production per ton, 200 kg per ton. And canola produces something close to 400 kg per ton of oil. Structurally speaking, we deliver a higher added value product, more than soy in terms of volume. That alone is a factor that really boosts margins. O preço da canola é muito próximo.
Canola price is close to soybean prices. It is benchmarked around the soybean prices in Brazil. That is what we expect to see. As to your first question about the industry, the inventory, the coverage, we have an inventory level in place, of course. Although, of course, we have another factor. We have some expansion stoppages in Rio Grande do Sul for maintenance shutdowns. In January, by mid-January, we have the crop coming in from Mato Grosso. We are getting close to the end of those programs in terms of soybean inventory compared to crushing. The soybean inventory is ready. We have farmers delivering soy directly from the field. We have, of course, the crop in Mato Grosso coming in in mid-January, as I said. Okay. One final follow-up, if I may.
The sale of canola meal, has it been defined from the commercial point of view? This is a new type of meal in the market, right? This is still a point, as Osório said. We're trying to validate it, but we have a design in place for both, both for the domestic market, for animal feed, and we also have foreign markets in line, structured. In theory, we will have a good flow of trade for canola meal. We understand that to be a positive move. We are now finalizing premium issues and logistics issues, but our reference is quite positive, quite good, working at a discount when compared to soybean meal. Still, the liquidity is not a source of concern for us. Okay, thank you. Our next question comes from Gustavo Troiano, sell-side analyst from Itaú. Over to you, sir. Good morning.
Thank you for taking my questions. Two questions I have about the CapEx, the reallocation of CapEx. First, for corn, what was the drive behind that higher investment? Thinking that perhaps the alternative to that would make the investment when you expand the plant. What is the rationale behind that anticipation of CapEx? If you see any change or any gain, rather, as you anticipate the CapEx, as you mentioned earlier today. The second question about canola, with Osório mentioned your expectations in terms of canola crushing numbers, but moving forward, what would be a limit for canola crushing? The adaptation you have made, is it enough to crush so much more? What is the target at the end of the day for canola crushing? What you have done so far, is it enough to reach that target?
The CRON canola, you mentioned that you are working to speed up the adoption of canola in the south of Brazil. What are the projects that you have in place for that? If you intend to split that profitability gain, provided it produces more oil, would you encourage the adoption in providing a premium or a discount? How can you speed up the ramp-up of canola in the south? Thank you. [Foreign language] . Good morning, Troiano. Thank you for your question. I'll address the first one, and then João Marcelo will address the second, the CapEx question. Eu só ressalto aqui. I'd like to emphasize the following. We strongly believe in canola as a second crop in the south, no doubt about it. We have wheat. One will not compete with the other, as I've mentioned before, canola and wheat.
Of course, the southern growers working hard with pastures, with livestock, everything quite integrated with canola growing or farming. Our main work along our farmers, our clients, is for them to be increasingly more knowledgeable about those crops so that they can be reassured as they manage a new crop such as canola. They can continue to move forward in terms of yields, in terms of good management, cost management, and so on. As for the market, the market is king. Of course, it is not only Três Tentos working with canola now, right? Canola is leading this movement, if you will, as we expand our areas and disseminate new technology. The market is king, and we will monitor that, and the market will decide. It is a high value-added crop, and the market will dictate the best moment. [Foreign language] .
The best moment for farmers to trade and for the company to work on it. But João Marcelo, if you could add to that, please. Over to you. Não, perfeitamente. [Foreign language] . Good morning, Gustavo. Em relação a canola, acho que só. As for canola, I'd just add that, as Osório said. We have been showing and have been saying that we have very good expectations around expanding that crop. We have already expanded significantly from last year to this year. This year, as we've shown, we're going to harvest a very high-yield crop overall. We are seeing positive results, good margins per hectare. And, of course, that will certainly encourage the expansion in terms of acreage. We have already planted 240,000 hectares this year, or close to that.
We understand that there is a good chance for us to get close to 400,000, maybe above that, close to 500,000 hectares for next year. Moving forward, Rio Grande do Sul plants 7 million hectares of soy and 1 million hectares of corn. There are 6 million hectares which are today being used by pasture lands or oats, other activities that do not compensate farmers as much as canola does. This is an incentive. From the Três Tentos point of view, we have that technological front to educate, to take technology out to the field. We have a program to work with canola, offering agricultural insurance for canola, which reduces farmers' risk significantly. About the pricing, as you have asked, we have this increase in liquidity. This increase in liquidity has helped appreciate the value, the price of canola.
Today, it's at a level where canola is working around a premium of 5-10% on top of the soybean price. We've seen an appreciation of the grain, which was significant. That, combined with other factors I mentioned, leads us to believe that this adaptation we've already done is enough for us to reach those ambitious targets. Whatever we originate in canola will be the reference of how many months of the year we'll be working with canola. If we originate canola between two and three months, if next year we double that, we'll be working six months in Ijuí with canola, and so on and so forth. The plant does not need more adaptations, to your point. As for the CapEx question, you mentioned something which was right.
Some of the lines which were expanded technologically and also in terms of structure in these first stages of the construction, that leads to more gains than if we were to do that later, right, in phase two. So that gain of working early on, which led us to anticipate some of those movements. Okay? [Foreign language] . Okay, thank you. Our next question comes from Thiago Duarte, sell-side analyst from BTG Pactual. Over to you, sir. [Foreign language] . Good morning, Luiz, João, Cristiano. A couple of questions. I'd like to go back to freight costs, freight expenses. This has become more relevant when you started to flow products from Mato Grosso. And I'd like to understand something.
In this quarter, you have announced a freight expenses storage of around BRL 400 million, which is not a lot less than what you report in terms of gross income, both for grains and industry ex-hedging. Of course, you have the biodiesel operation numbers to compound. Okay, to combine. I'd like to hear from you, or update with you, a view that you had in the past when you used to say that a higher freight cost in Mato Grosso would allow for gains in gross margins, as if the market could sometimes incorporate a higher freight. In this quarter, and even in recent quarters, that does not seem to have been the case. I'd like to hear from you an update on that expectation you had in terms of freight costs.
Is there room to grow gross margins and gross income as you start moving grains and meal from Mato Grosso to compensate that higher freight cost? That's the first question. The first question, I'd like to hear from you about the origination. That's the second quarter, where you have a volume of 5% or 6% of your grains volume for trading that you have been doing from other states where you do not have operations around industry or inputs. How do you see the end of that avenue? What's the end game of that business? Do you see opportunity to originate, which can be really profitable in those other states? Or do you expect that to be a first attempt, testing the waters, if you will, in those states, and then develop more businesses there?
A bit more color about that and how that fits in your ecosystem-based strategy. You started with inputs and then brought along the other pillars. Now you are working around originating grains in other states. One final question for the guidance. You mentioned soybean crushing for the year, if I'm not wrong. The original number was 2.6 million tons of soybeans for crushing. When you look at what you have crushed so far, that would imply for Q4 a crushing level of 700,000 tons, which is a lot, especially in a context where you have to have maintenance, shutdowns, and so on. Does that number make sense? Am I correct? Can you expect a crushing level of 2.6 million tons in the year? Does that still make sense? Thank you. [Foreign language] , Thiago. Good morning, Thiago. Thank you for the questions.
I'll address some and then João Marcelo, others. I'll start by the end. We don't think it's time for us to review the guidance, no. We have a schedule which is being followed in terms of improvement, maintenance of all plants, considering Ijuí as we move to canola. We need to identify throughout Q4 what we can improve so that it can reach our targets. It might be difficult to reach that target, but we will be really close to that number. We're not going to change or review the guidance. We do not have the total idea of how to do it. As for your second question, origination, yes, we have traded in other states. We are opening offices to originate grains in Rio Verde, Uberlândia, and Redenção. They have already been open, as I mentioned.
This is part of our release, and we are now working with the teams being put together in those areas. Três Tentos has already established a footprint in those cities so that we can identify whether we have ways to expand or to stay there and where industry grains. Right now, we are working around trading in those new areas. It is a company that today has a national recognition within the agribusiness space. It is important for us to originate the grain and do all the arbitrage around that grains, whether it is going abroad, whether it is staying domestically or in the industry. Today, the availability that we have to access that grain is increasingly more consistent. With this consistency in terms of origination, we have the capacity to arbitrate, which is increasingly better.
As for freight, we are growing and growing, especially in the Midwest, covering longer distances. We cannot define the freight cost. The freight cost is in line with the size of the crop. The freight service is a product, if you will, based on supply and demand. What Três Tentos has been doing is to try and focus on that. Sometimes we are not able to reach the percentage that we reached before in the previous year, previous quarter, but that's what we try to do. We have been working to expand transportation modes. Today, 100% of our meal from our two plants in the south, they are sent to Rio Grande on rail. In Mato Grosso, our 163 plant going to Rondonópolis, and then to Rondonópolis and then to Santos, also by rail, also by rail.
The new plant in Araguaia Valley works on both fronts, north and south, through Rio Verde, and also by rail until Santos Port. Those arbitrage processes for freight are happening inside the company. They will continue to happen inside the company. We need to manage that. It is yet another point of attention the company has to focus on so that the whole business will generate profitability. I would like to ask you and the others not to analyze freight without looking at our hedging policies. As we buy a product at BRL 163, that freight is embedded in that hedging policy. It is not a postmortem being analyzed separately. It is an analysis that has to be taken into account, a combined version, just like we do here. The idea is always to have a positive operationally, financially, and especially when we add those two together.
João Marcelo, would you like to add anything? Okay. I think you've answered everything. Just to add, Thiago, when you talk about freight, our product mix works with lower added value products, especially when we increase corn volumes. I'm talking about Midwest in particular, and also the drop in soybean meal prices. You are correct when you talk about margins. We are working in scenarios, especially when you look at the gross margins, which are tighter scenarios. Overall, that's why freight costs appear at a higher proportion. In structural terms, we continue to believe that those operating margins tend to offset those freight increases. That's what I had. [Foreign language] . Okay, thank you. [Foreign language] , our next question, comes from Pedro Francica, XP Inc. Analyst. Over to you. De Luiz, João Marcelo. Good morning, everyone. Thank you.
[Foreign language] a my first question is about working capital, commercial strategy. The company is known for being a partner to farmers. You seek to be intimate, close to your farmers, former partners. When you look at working capital days, the impression I have is that amidst this more restricted credit scenario, Três Tentos has tried to increase partnership by offering credit to farmers. I'd like to understand if that makes sense, if I'm reading it right. If you could perhaps quantify that, I know it's a case-by-case basis, but if you could quantify how much more credit are you expanding to growers, to farmers, so that you can have an idea of working capital for the coming quarters. The second question is about corn-based ethanol. I think the market speculates about the risk of American ethanol coming to Brazil.
What could be strategic on the part of the company or potential activities to mitigate the arrival of American ethanol in Brazil? Still, on corn ethanol, the fundamentals of ethanol deteriorated a bit in the past months. My question is, if you see the economics of the project changing somehow, and what do you think makes sense for us to think as we look forward in terms of ethanol prices for next year? Those are my questions. Thank you. Bom dia, Pedro. Good morning, Pedro. Thank you. [Foreign language] com o Cristiano e com o João Marcelo. Turn over to Marcelo and Cristiano. [Foreign language] . About working capital and credit. [Foreign language]
Go ahead, Cristiano. Talking about the working capital. About the working capital, you are correct in your understanding. We see a bit of an extension, but that is within our plan for growth. If you look at the scenario as a whole, what have we seen? We have seen that the credit scenario as a whole is more restricted for growers. We have a scenario in which, as we understand, is a bit more of a sentiment as we look at the market that increasingly the share of public banks in incentivizing growers, it will be more restricted. We also have a scenario where we have growers in some regions at a level where they are more compromised in terms of warranties. What we have been trying to do is to provide more guarantee as we extend those days, working close to growers, always offering guarantees.
The scenario going forward, that's not only Três Tentos, but all the other players in the private sector, and I'm talking about banks, of course, as well, they will have a more important role to play in incentivizing agricultural activity as a whole. You see a growth in Tentos Cap portfolio growing. That's one of the avenues for growth that we see for us. We understand that growers will need credit, and we need a quality to deliver that, which is linked to our ability to have credit with low risk or within the risk level that we understand to be desirable. There is no credit without risk, but we have been doing a good job, and that reflects in our numbers. We do see a growth avenue in that segment. Credit.
It is a changing context which is happening nationwide, and it's important for us to be increasingly more attentive to how to grant credit, the methodology per se. If we look at the portfolio as a whole, it depends on the metrics you use. We are at the same level of credit when compared to the overall context. When we look at the terms, deadlines, it is very close to what we did before, and we expect to maintain those low levels of default we've seen so far. Yes, it is a scenario that we expect to see public participation or from the government that is being less relevant. We see more private banks, more financial institutions of the private sector having a higher role.
Now for the corn ethanol, just to reinforce what you said, Cristiano, we do have a good performance in our credit portfolio, just to be sure. We have been able to support good levels of default, even in scenarios where other players find it more difficult. As for the corn ethanol, when you talk about import from the U.S., of course, it is not a positive thing. That has to do with political moves that can affect any businesses. We do not see that with good eyes, of course, but I would say that in this scenario, the corn ethanol stands out because it is competitive, more competitive than sugarcane ethanol. It is not going to be a problem. The sugarcane ethanol will be more impacted.
There is speculation around an increase in the percentage of ethanol in the U.S. to 15%, 15%, 15, which will certainly decrease the competitiveness and even their appetite because their prices would go up. As for the economics, as you mentioned, there is no major change. We have soybean acreage, which will be positive for the second crop. That is an indication of good yields. We also have been monitoring the economics of other players in the industry, which have consistently delivered good numbers. We do not have major changes in the horizon. We continue to be optimistic around this project. Okay, thank you for the answers. If I can ask another question about the inputs, we have seen a very robust pricing of inputs, especially seeds and chemicals.
We hear from other players that prices were a bit challenging, a lot of generics, oversupply of seeds, but pricing was quite good. Does it make sense for us to believe or to think that when you provide more credit, you can better price and then gain margins because of that? Or is the improvement more linked to an improvement in structure? What will be the drivers in the improvement under the inputs pillar? I'd say it's more structural, Pedro, and in an improvement in mix. Last year, we had a year where we had climate problems, especially in Rio Grande do Sul. The mix, especially for crop protection, was smaller. We do have a structural issue for the market, which has recovered some of those margins. Also, this mixed balance that we have reached here at the company.
Of course, credit is an element for competitiveness, especially when you have a tighter market, no doubt. [Foreign language] . Okay, thank you, Marcelo. [Foreign language] , our next question, comes from Bradesco. Over to you, sir. [Foreign language] . Good morning. Thank you for taking my question. My first question is about inputs retail. Looking at the numbers for the quarter for Mato Grosso, Rio Grande do Sul and Mato Grosso, we see revenue more than doubling year on year. Rio Grande do Sul seems to be growing to the tune of 20%, even amidst a more mature operation. What do you expect in terms of market share for 2026, especially in Mato Grosso? Where are you at in terms of maturation of your existing store base? Where else can you grow based on what you have? Number two, a quick follow-up on the industry question.
In Q1 this year, we discussed the negative BRL 90 million. There was some kind of mismatch with the liquidation across quarters. The question is, can we imagine for this quarter that there was another mismatch for those BRL 203 million, or was that in tune with the volume which was traded in the quarter? Thank you. [Foreign language] , Henrique. Good morning, Henrique. [Foreign language] . Thank you for your question. [Foreign language] . João Marcelo, we'll talk about inputs. [Foreign language] . Then I'll jump in for the industry portion of your question. Claro. [Foreign language] , Henrique. Good morning, Henrique. As for the inputs question, Mato Grosso has been delivering, delivering well, and we expect it to deliver increasingly high growth because of the reasons you mentioned, the maturity of the stores.
In Mato Grosso's stores, are still maturing. They are at an earlier level of maturity, so they do have a good potential to acquire more market share. We like to say that the time for a store to mature in inputs is five years. Our Mato Grosso stores, they have an average age of two years, two to three years, so we still have a long way to explore that potential. There is a ramp up to grow market share, which is quite important going forward, and we expect to see that materializing in the coming years. In Rio Grande do Sul, we have stores which were recently opened last year, and even this year we have new stores opening, of course. You have 59 stores. If you open two or three, the impact is lower than in Mato Grosso because we have fewer stores, right? A smaller base.
In Rio Grande too, we understand that overall there is still a good expectation to gain a little bit more market share. The growth around inputs is positive. [Foreign language] do hedge. I can talk about the hedge mismatch. There was no mismatch in the first quarter. There was, as you said, but not now. There is no mismatch. It reflects what we did in the quarter, okay? Just to be sure. Okay, thank you. [Foreign language] . This concludes our Q&A session. I would like to turn the conference back over to Mr. Luís Osório for his final remarks. Over to you, sir. [Foreign language] . Thank you once again for your presence and participation. [Foreign language] . We still have a month to go.
Pull force. Just to highlight this growth of 43% in our operating revenue, net operating revenue. [Foreign language] . In Q3. 34%. The 34% in years to date. [Foreign language] . Those are quite reassuring. Provides us with enough fuel, if you will, to move forward when we see a challenging quarter, volatile quarter as we have now and we will have. When we see how prepared the company is, that's quite reassuring. When we identify margins, when we identified all the work done to protect our margins. Earlier this morning, I was with João Marcelo, Cristiane and other colleagues. We were listing what we're going to do in the future and how we are well hedged. Of course, knowing we are now facing a turbulent scenario, that turbulence will not be over soon. I'm talking about political challenges, production, supply, demand, climate, and other changes.
Três Tentos has been operating quite safely, and we continue to do so. That is the takeaway message. A company continues to go after technology, a company which is focused on relationship with farmers, technological efficiency, all of that around a good hedging work and also a good governance, continued improvement. That is the final message I'd like to leave as we close our Q3 earnings call. Thank you and have a nice day, everyone. Três Tentos video conference to discuss Q3 results is now over. The RI team remains available for comments or questions you may still have. Thank you so much for participating and have a nice day, everyone.