Adecoagro (AGRO) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA surged to $86 million, up 138.7% year-over-year, driven by record sugarcane crushing, a 96% ethanol mix, and strong Fertilizers segment performance following the Profertil acquisition.

• Gross sales reached $394 million, up 22% year-over-year, reflecting growth in Fertilizers and higher ethanol and energy prices.

• The new diversified agro-industrial platform debuted with three segments: Sugar, Ethanol & Energy; Fertilizers; and Food & Agriculture.

• Stronger earnings and cash generation enabled accelerated deleveraging, despite net income being negative due to non-cash items.

• Profertil acquisition completed, supporting scale, segment diversification, and future earnings resilience.

Financial highlights

• Gross sales totaled $394 million, up 22% year-over-year, with adjusted EBITDA at $86 million, a 139% increase, and EBITDA margin improving to 22.3%.

• Sugar, Ethanol & Energy segment achieved $41 million adjusted EBITDA, with a 49% increase in cane crushing to 2.2 million tons and a 96% ethanol mix.

• Fertilizers segment adjusted EBITDA reached $53 million, up 4.3x year-over-year, with sales up 68% and urea production up 10%.

• Food & Agriculture segment saw adjusted EBITDA fall 92% year-over-year to $1.4 million, with sales down 18% due to lower commodity prices and higher costs.

• Net debt increased to $1.63 billion, mainly due to the Profertil acquisition and seasonal working capital needs; pro forma net leverage at 3.2x.

Outlook and guidance

• Fertilizers segment expected to deliver stronger-than-anticipated EBITDA in 2026, benefiting from a ~55% surge in international urea prices since late February.

• Sugar, Ethanol & Energy segment anticipates low double-digit growth in crushing volume for 2026, with continued ethanol maximization.

• Food & Agriculture margins projected to improve as new crops are commercialized and cost initiatives take effect.

• Net leverage expected to decline to 2x EBITDA by year-end 2026, ahead of prior expectations.

• Focus remains on capturing upside in fertilizer prices and maximizing ethanol mix.