Sucro (SUGR) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw record refinery production volumes as new Hamilton and University Park facilities ramped up, shifting the business mix toward higher value refining operations.

• Maintained overall sugar delivery volumes year-over-year, despite margin pressure from tariffs, logistics, and operational costs, with most costs not passed to customers.

• Operational execution remained strong, but adjusted profitability and net income were below expectations due to challenging U.S. market conditions.

• The industry is believed to be nearing an inflection point as U.S. sugar market oversupply is projected to normalize.

• Resilience demonstrated through stable volumes, expanded refining throughput, and growth in forward book amid challenging market dynamics.

Financial highlights

• Revenue was $149.2 million, down 4.2% compared to Q1 2025.

• Adjusted gross profit for Q1 2026 was $9.8 million, down from $13.9 million in Q1 2025, with margin at 6.6% versus 8.9%.

• Adjusted EBITDA declined to $5.2 million from $10 million year-over-year, mainly due to margin compression.

• Net income was $5.4 million, a 55% decrease year-over-year.

• Free cash flow was negative $3.1 million, reflecting lower profitability and no repeat of prior year working capital reductions.

Outlook and guidance

• U.S. sugar market fundamentals are expected to improve, with normalization of supply-demand balance projected for the new crop year starting October 1.

• Additional refinery volume growth and operational efficiencies are anticipated for the remainder of 2026.

• Expectation of improved operating leverage and stronger financial performance as new assets scale.

• The Belize refinery project remains on track for initial operations in the second half of 2026.

• Anticipated long-term margin expansion as business mix shifts further toward refining operations.