Adecoagro (AGRO) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 138.7% year-over-year to $85.8 million, more than doubling due to record sugarcane crushing, a near-total ethanol mix, and strong Fertilizers segment performance, reflecting increased scale and improved earnings potential after acquisitions and operational improvements.

• Gross sales increased 21.6% year-over-year to $393.5 million, with pro forma growth of 1.1% reflecting the Profertil acquisition.

• Fertilizer operations ramped up post-maintenance, capturing upside from spiking urea prices due to Middle East conflict.

• Record sugarcane crushing in Brazil and operational flexibility enabled near-100% ethanol production, benefiting from favorable prices.

• Higher productivity and margins in Brazil, Argentina, and Uruguay are expected to drive stronger earnings and cash generation in 2026.

Financial highlights

• Gross sales totaled $394 million, up 22% year-over-year, driven by Fertilizers and higher ethanol and energy prices.

• Adjusted EBITDA was $86 million, a 139% increase compared to the same quarter last year, supported by record crushing and cost efficiencies.

• Sugar, Ethanol & Energy segment achieved a 49% year-over-year increase in cane crushing to 2.2 million tons.

• Fertilizer segment sales rose 68% year-over-year, with a 16% increase in urea prices and a 9.6% increase in urea production.

• Food & Agriculture segment faced lower commodity prices and higher costs, but dairy volumes increased on improved productivity.

Outlook and guidance

• Expectation of low double-digit growth in crushing volumes for the year, with continued ethanol maximization.

• Fertilizer segment adjusted EBITDA in 2026 anticipated to exceed prior year, supported by a ~55% surge in international urea prices since late February.

• Margins in Food & Agriculture expected to improve as new crop is commercialized and cost initiatives take effect.

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

• Grain productivity in Food & Agriculture is in line with historical averages.