The $86 million adjusted EBITDA generated already reflects the change in scale and earnings potential, with further upside ahead. In Brazil, we achieved a new first quarter crushing record, reflecting the returns on our planting expansion investments. Overall, higher productivity in Brazil, higher urea prices, and better margins in Argentina and Uruguay should translate into a stronger earnings performance and, most importantly, higher cash generation in 2026. This, in turn, will enable us a faster than expected deleveraging, one of our main priorities following the acquisition of the Fertilizer business.

Number three, the Food & Agriculture segment, an integrated platform focused on agriculture and food production that was previously reported across three separate verticals: crops, rice, and dairy. Gross sales totaled $394 million in the first quarter, representing a 22% year-over-year increase. Adjusted EBITDA reached $86 million, more than doubling the level reported in the prior year. Moving to the financial and operational performance of our operations, let's start with the Sugar, Ethanol, & Energy segment on slide six.

As a result, we achieved a new first quarter crushing record of 2.2 million tons of cane, a 49% year-over-year increase driven by higher productivity despite harvesting a smaller area. Overall, adjusted EBITDA for the period reached $41 million, exceeding the performance reported in the previous year. As of today, our crushing pace remains on track to meet our full year target. Accordingly, we expect low double-digit growth in crushing volumes driven by greater cane availability, and we anticipate a full year of ethanol maximization given the current price scenario.

What went well
  • Consolidated adjusted EBITDA reached US$86 million, more than double the prior-year level, on the first full contribution from the Fertilizers segment and higher ethanol/energy prices; gross sales rose 22% year over year to US$394 million.
  • The Fertilizers segment delivered US$53 million adjusted EBITDA with sales up 68% year over year (16% higher urea prices), as Profertil ran at full capacity after its year-end turnaround (only 10 days of downtime vs. 19 a year earlier) and benefited from lower gas-sourcing costs.
  • Urea prices spiked following the escalation of the Middle East conflict (a region that accounts for ~30% of global urea trade), and Adecoagro is progressively capturing the upside as most of its ~1.3 million annual tons remain open to market prices with gas costs fixed.
  • Sugar, Ethanol & Energy set a new first-quarter crushing record of 2.2 million tons (+49% year over year) with a 96% ethanol mix, capturing higher ethanol prices under the continuous-harvest model; segment adjusted EBITDA rose to US$41 million.
  • Management expects faster-than-planned deleveraging - potentially reaching ~2x net debt/EBITDA by the end of 2026 - and, excluding seasonal working capital, net debt already declined versus Q4 2025.
What went wrong
  • The Food & Agriculture segment remained pressured by lower peanut and rice prices and higher U.S.-dollar costs as the company finalized sales of carryover inventory from the prior harvest season.
  • Net debt rose to US$1.6 billion on seasonal working-capital needs for planting and harvesting, and pro forma net leverage stood at an elevated 3.2x, still above the company's ~2x comfort zone.
  • Sugar, Ethanol & Energy production costs were hurt by appreciation of the Brazilian real and by the acceleration of certain agricultural expenses (weed and pest control) into the quarter, and quarterly SE&E sales were below the prior year on weaker global sugar prices and lower volumes.
  • The final Profertil installment (a US$1.1 billion transaction) was paid during the quarter, consuming cash.
  • Only a partial benefit of the March urea-price surge was reflected in the quarter.

Guidance Changes

MetricPeriodCurrent guidance
Net leverageend-2026Now expected to reach ~2x adjusted EBITDA by the end of 2026, ahead of schedule
Fertilizers adjusted EBITDAFY2026Now expected to be stronger than previously anticipated, potentially exceeding prior-year levels on a favorable price outlook
SE&E crushingFY2026Reaffirmed low-double-digit crushing growth and a full year of ethanol maximization
SE&E cash costsFY2026Expected down ~10-15% in reais on volume dilution, efficiencies and lower Consecana prices (Q1 cost inflation was a one-off timing effect)
Dividend2026US$35M cash dividend approved; first US$17.5M installment paid May 19, second in November

Performance Breakdown

MetricYoYNote
Consolidated adjusted EBITDA US$86M (more than 2x prior year) First full quarter of Fertilizers plus higher ethanol/energy prices and record crushing.
Gross sales US$394M (+22%) Strong Fertilizers performance and higher ethanol/energy prices, partly offset by lower sugar, peanut and rice prices.
Fertilizers adjusted EBITDA US$53M 68% higher sales (16% higher urea prices), higher production days and lower gas-sourcing costs.
SE&E adjusted EBITDA US$41M Record 2.2M-ton crushing (+49%), 96% ethanol mix; partly offset by FX and pulled-forward agricultural costs.
Net debt / pro forma leverage US$1.6B; 3.2x Seasonal working capital plus the final Profertil installment; ex-seasonality net debt fell vs Q4 2025.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Fertilizers ramp & urea upside13-day contribution in Q4 2025First full quarter at full capacity; US$53M EBITDA; capturing Middle East-driven urea price spike with fixed gas costs—
SE&E record crushingWeather-hit 2025First-quarter record 2.2M tons (+49%), 96% ethanol mix under continuous-harvest model—
Accelerated deleveraging3.3x pro forma at YE20253.2x; targeting ~2x by end-2026 on stronger fertilizer cash generation—

Q&A Summary

Could the fertilizer plant expansion be accelerated given high urea prices, possibly with a partner?
Mariano Bosch: building a urea plant takes at least four years (typically 5-7), so near-term price strength will not drive the decision; still, the company is actively studying an expansion given Argentina's growing gas supply (Vaca Muerta), Bahia Blanca port access and the region's structural urea import deficit (~10M tons imported vs ~2.5M tons produced), and various financing routes including partners are possible.
How correlated are Argentine urea prices to Brazil, and how is the SE&E cost path?
Mariano Bosch/Renato Pereira: domestic urea prices track CFR Brazil (spot) closely, and demand (June-August peak for wheat/corn) is resilient with at most a ~10% reduction; SE&E costs should fall ~10-15% in reais on volume dilution, efficiency gains and lower Consecana prices, with Q1's elevated costs a one-off from pulled-forward agricultural operations.
What is the capital-allocation and growth priority once leverage normalizes?
Mariano Bosch/Emilio Gnecco: deleveraging to ~2x by end-2026 is the first priority; thereafter the company will weigh higher-return organic projects (fertilizer expansion, biogas, sugar/ethanol) and maintain its dividend policy, staying disciplined on returns.

More on Adecoagro S.A.

Reported 2026-05-12 · figures from the Adecoagro S.A. Q1 2026 earnings call.

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