Sucro (SUGR) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $231.4 million and sugar deliveries of 286,989 metric tons, nearly doubling year-over-year, driven by higher U.S. wholesale and raw sugar business volumes.

• Operational efficiency improved, with a 24.8% reduction in SG&A and a 29.1% decrease in interest expense year-over-year.

• Free cash flow reached $6.1 million, marking the sixth consecutive positive quarter and a quarterly record.

• Construction advanced on new refineries in Hamilton, Ontario and University Park, Illinois, expected online in late 2025 and early 2026.

• Net income for the quarter was $2.0 million, with year-to-date net income at $14.0 million.

Financial highlights

• Revenue increased 118.9% year-over-year to $231.4 million for the quarter, with refining volumes at a quarterly high.

• Delivered 287,000 metric tons in Q2, more than double the prior year.

• Adjusted EBITDA rose 13% to $9.7 million, despite margin compression from high-cost raw sugar.

• Adjusted gross profit was $13.2 million, down 9.6% year-over-year; adjusted gross profit margin was 5.7%.

• Net income per share (basic) was $0.19, down 67.4% year-over-year.

Outlook and guidance

• Margin recovery is expected in the second half of 2025 as high-cost inventory is replaced with lower-cost raw sugar.

• CapEx guidance for the year increased to $36.5 million to support added infrastructure.

• 2025 is a bridge year, with transformational growth expected in 2026 as two new refineries come online.

• New refinery capacity will increase production and supply responsiveness in key North American markets.