Sucro (SUGR) Q3 2025 earnings summary

Executive summary

• Achieved record year-to-date volume, surpassing 600,000 metric tons delivered through September, despite a challenging macro-trade environment and US sugar market issues.

• Q3 2025 revenue was $132.9 million, down 23% year-over-year due to lower sales volumes, especially in U.S. organic sugar and bulk raw sugar sales at origin.

• Net income for Q3 2025 rose 106.6% year-over-year to $15.4 million, driven by higher unrealized mark-to-market gains on inventory.

• US conventional raw sugar flows remained strong, and refining operations normalized with volumes and margins back in line with last year.

• Margin headwinds from earlier quarters have largely subsided, with Q3 adjusted gross profit exceeding $10 million, supported by increased volume and cost efficiencies.

Financial highlights

• Q3 sugar deliveries were 147,853 metric tons, down 18.3% year over year, but year-to-date volumes set a new record above 600,000 metric tons.

• Q3 adjusted gross profit was $13.4 million (10.1% margin), compared to $13.8 million (8% margin) last year.

• Year-to-date adjusted gross profit was $40.4 million (7.8% margin), down from $44.7 million (9%) in 2024.

• Adjusted EBITDA for Q3 2025 was $7.2 million, down 12.9% year-over-year; year-to-date adjusted EBITDA was $27.5 million (5.3% of revenue), consistent with 2024.

• Net income for the year to date was $29.4 million, nearly flat compared to $31.1 million in 2024.

Outlook and guidance

• Refining margins are expected to remain strong in Q4, with positive momentum anticipated to continue through year-end.

• CapEx for 2025 revised to $49 million, with Hamilton project at $75 million and University Park at $25 million.

• Belize capital spend to ramp up in 2026, with $5 million targeted for next year; Belize refinery joint venture targets initial operations in H1–Q3 2026.

• Commissioning of new refineries in Hamilton, Ontario (Q4 2025) and University Park, Illinois (Q1 2026) remains on track.

• Organic sugar pricing in the U.S. reflects high-tier import economics following USDA's FY2026 specialty sugar announcement.