#Luxembourg #EBITDA #Adecoagro #Production

Adecoagro S.A. Reports Strong Financials and Production Milestones

Adecoagro S.A. (NYSE: AGRO) recently announced significant achievements for the third quarter of 2026, showcasing its dominance as a sustainable production leader in South America. With adjusted EBITDA reaching $471.8 million for the nine-month period, a historic peak for this duration, the company has set new standards in financial performance and production efficiencies.

Key Highlights

In the reported period, Adecoagro's Fertilizers division experienced notable success driven by strong urea sales, which saw a significant year-over-year increase. The dairy sector also rebounded due to rising UHT milk prices, contributing to favorable results in the Food & Agriculture segment. The Sugar, Ethanol & Energy segment reported robust cane productivity, despite a decline in quarterly crushing volumes attributed to excessive rainfall.

Adjusted Net Income saw a decrease due to higher interest expenses related to debt from recent acquisitions, along with increased taxes derived from elevated pre-tax income. The current net debt-to-EBITDA ratio stands at 3.2x, although this would adjust to 3.0x when excluding impacts from seasonal working capital and rising inventories.

Sugar, Ethanol & Energy Segment

Adjusted EBITDA for the Sugar, Ethanol & Energy segment was recorded at $101.1 million for the third quarter and $195.0 million for the nine months, reflecting decreases of 16% and 10.7% respectively compared to the previous year. Year-to-date crushing reached 10.4 million tons, a 5.9% increase, although 3Q26 experienced a setback due to adverse weather conditions.

Notably, the Total Recoverable Sugar (TRS) per hectare showed encouraging growth, increasing by 24% year-over-year. This shift in productivity underscores the resilience and adaptability of Adecoagro’s farming practices, even in the face of fluctuating environmental factors.

Fertilizers Segment

The Fertilizers division reported an impressive performance, with adjusted EBITDA hitting $109.3 million in the third quarter and $283.1 million for the nine months, translating to a 7.4% and 64.9% climb year-over-year respectively when accounting for the acquisition of Profertil. Urea production was particularly noteworthy, increasing by 4.1% year-over-year in Q3 and seeing a 30.8% sales rise due to accelerated demand ahead of the 2026/27 planting season.

With a strong combination of higher sales volumes and pricing, Adecoagro is well-poised for future growth in this sector, supported by ongoing improvements in production efficiencies.

Food & Agriculture Segment

In the Food & Agriculture division, adjusted EBITDA surged to $12.6 million in 3Q26 from just $1.5 million in the same quarter of the previous year. Strategic domestic sales trends for UHT milk and rice have significantly contributed to this turnaround. Adecoagro aims to capitalize on continuing agricultural yields and weather patterns favorable for crops in the upcoming planting season.

The resilience in dairy production is also notable, with an upward trend in both milk yield and processing volumes observed.

Future Outlook

Looking ahead, Adecoagro anticipates a record-breaking year in 2026 with ambitious growth targets across all segments. The company has hedged 100% of its sugar production for 2026 at favorable pricing levels, alongside a significant portion of its 2027 production. This proactive financial strategy empowers Adecoagro to potentially leverage market opportunities effectively.

With a robust operational foundation and an unwavering commitment to sustainable agricultural practices, Adecoagro S.A. is set to redefine industry benchmarks in profitability and productivity moving forward. The upcoming conference call on November 12 will further detail these achievements and future strategies, inviting stakeholders to engage with the company's growth narrative.

About Adecoagro S.A.

Operating in the most fertile regions of Argentina, Brazil, and Uruguay, Adecoagro has established a significant footprint in sustainable agricultural production, managing extensive farmland and multiple industrial facilities efficiently. Through innovative practices, the company produces a wide array of agricultural products, fertilizers, and renewable energy, underscoring its role as a market leader committed to sustainability and growth.