This new operation marked a transformational milestone for us as it broadened our production capabilities, more than doubled our cash generation, and reduced earnings volatility by incorporating a stable, consistent, and already cash-generating business. We are adding a unique asset in Argentina to our well-diversified agro-industrial portfolio with the capacity to expand its earnings and cash potential by leveraging on Argentina's largest natural gas reserves. We also have a huge market opportunity of reaching a wider demand in South America that today must rely on imports from far away origins, such as the Middle East. The acquisition of Profertil would not have been possible without the continued support of our shareholders.

We raised $300 million in new equity anchored by Tether, our controlling shareholder, further reinforcing their commitment to the company's long-term strategy. In Argentina and Uruguay, better productivity will turn into margin expansion and greater results. On top of this, we expect a normalized and full year of operations from the fertilizer business, driving further cash generation. I am convinced that if we remain focused on the lowest cost producer in each of our sustainable production models, we can further expand our earnings potential.

Additionally, in an effort to update and simplify the way we view our business units from the beginning of January 2026, the company will change the business segment reporting structure as follows. Lastly, segment number three, food and agriculture business, which reflects an integrated business focused on agriculture and food production that in the past were presented through three separate verticals, crops, rice, and dairy. Please turn to page 4, where you can see how the acquisition of Profertil supports our scale. In addition, the acquisition further diversifies our portfolio, as illustrated in the pie chart at the top right, thereby strengthening the company's ability to perform across cycles.

What went well
  • The transformational Profertil acquisition closed on December 18, 2025 (90% equity for a total ~US$1.1 billion), making Adecoagro the largest urea producer in South America and roughly doubling its cash-generation potential; on a pro forma basis the company moved above US$2 billion in sales with the potential for ~US$700 million of adjusted EBITDA.
  • The deal added a stable, already-cash-generating business and prompted a move to three more balanced segments (Sugar, Ethanol & Energy; Fertilizers; Food & Agriculture), reducing earnings volatility and diversifying the revenue base.
  • The company raised US$300 million in new equity anchored by controlling shareholder Tether - its first equity issuance since the 2011 IPO - reinforcing long-term commitment, alongside two new US$200 million 7-year debt facilities (2-year grace) at attractive rates.
  • Despite lower milling, SE&E cash cost held flat at US$0.128 per pound (sugar-equivalent) on machinery upgrades, lower maintenance capex and higher tax recovery, and the ethanol mix reached 72% in Q4 (58% for the full year) as cane productivity recovered strongly late in the year.
  • The board approved a US$35 million cash dividend for 2026, continuing the distribution policy.
What went wrong
  • 2025 was a challenging year: consolidated sales fell 2% and adjusted EBITDA fell 38% year over year on low commodity prices, mixed productivity and higher U.S.-dollar costs (pro forma, revenues -6% and adjusted EBITDA -35%).
  • The fertilizer business lost roughly 90 days of production in 2025 - a 54-day scheduled plant turnaround (Oct 16-Dec 8, just before the acquisition) and a 31-day gas-supply interruption from a third-party distributor flooding - depressing Profertil's 2025 results.
  • Pro forma net debt reached US$1.5 billion and net leverage rose to 3.3x (from 1.2x in 2024), well above the company's ~2x comfort level, on acquisition financing and weak results.
  • Full-year SE&E adjusted EBITDA of US$292 million came in below 2024, and above-average Q4 rainfall limited milling days and kept crushing below the prior year.
  • Food & Agriculture adjusted EBITDA was pressured by low rice and peanut prices, uneven yields and higher USD costs, even as its top line held roughly flat on higher volumes.

Guidance Changes

MetricPeriodCurrent guidance
Net leveragenext 1-2 yearsIntend to reduce toward ~2x adjusted EBITDA via higher fertilizer EBITDA and capital-allocation revision
Fertilizers adjusted EBITDAFY2026Full recovery expected on normalized operations and a positive urea price outlook
SE&E crushingFY2026Low double-digit growth expected on better productivity and a full year of ethanol maximization
SE&E cash costsFY2026Expected down ~10-15% on volume dilution and efficiencies
Dividend2026US$35M cash dividend approved (paid equally in May and November), subject to AGM approval

Performance Breakdown

MetricYoYNote
Consolidated sales -2% YoY (pro forma -6%) Low commodity prices, mixed productivity, higher USD costs.
Consolidated adjusted EBITDA -38% YoY (pro forma -35%) Down-cycle pricing; fertilizer downtime on a pro forma basis.
SE&E adjusted EBITDA US$292M (below 2024) Lower milling and sugar prices, partly offset by flat cash cost of US$0.128/lb and 72% Q4 ethanol mix.
Pro forma net debt / leverage US$1.5B; 3.3x (vs 1.2x) Profertil acquisition financing plus lower 2025 results.
Profertil consideration ~US$1.1B for 90% Financed with ~US$400M cash, 2x US$200M 7-yr debt and US$300M equity; US$676M paid by Dec 31, ~US$50M balance outstanding.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Scale transformation via ProfertilFour verticals, ~US$1.5B revenue baseLargest South American urea producer; pro forma >US$2B sales and up to ~US$700M adjusted EBITDA potential—
New three-segment structureSE&E + Farming (Crops/Rice/Dairy/Land)Sugar, Ethanol & Energy; Fertilizers; Food & Agriculture (effective Jan 2026)—
Deleveraging1.2x in 20243.3x pro forma; targeting ~2x via fertilizer cash generation and capital-allocation discipline—

Q&A Summary

How will higher urea prices flow to margins, and what is the SE&E unit-cost outlook?
Mariano Bosch/Renato Pereira: with ~60% of urea cost (gas) fixed through end-2027, a 30-40% urea-price spike flows almost directly to EBITDA; about 1.1M of the ~1.3M annual tons remain open to higher prices. SE&E costs should fall ~10-15% on volume dilution, fixed 70% of fertilizer needs, and machinery/agriculture efficiencies.
What is the long-term growth path and the role of the Food & Agriculture segment?
Mariano Bosch: the company is comfortable with all three segments; the biggest strategic opportunity is expanding urea production in South America (a ~US$-heavy, 4-5-year greenfield, potentially aided by Argentina's RIGI regime), alongside organic sugar/ethanol and biogas projects. It sees no need to divest or partner Food & Agriculture, which is being transformed into a more cash-generative business.
What long-run urea cost and pricing model should be assumed?
Mariano Bosch: Adecoagro believes it is among the lowest-cost urea producers, with a stabilized cash cost of about US$180-190 per ton at ~1.3M tons; South America imports ~10M tons of urea a year versus ~2.5M tons of regional production, underpinning import-parity pricing and long-run demand.

More on Adecoagro S.A.

Reported 2026-03-17 · figures from the Adecoagro S.A. Q4 2025 earnings call.

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