AGRO · Adecoagro S.A.

Adecoagro S.A. delivered robust 1Q26 results with Adjusted EBITDA surging 138.7% year-over-year to $85.8 million, achieving a 22.3% margin, primarily fueled by the Fertilizers segment's $52.5 million contribution following the December 18, 2025 acquisition of Profertil S.A. This segment benefited from 9.6% higher urea production, 67.8% sales growth driven by elevated prices ($517/ton vs $444/ton) and volumes, plus lower gas costs from spot purchases. On a pro forma basis, Fertilizers Adjusted EBITDA grew 4.3x versus 1Q25. The Sugar, Ethanol & Energy segment added $40.6 million, up 36.0%, on a first-quarter crushing record of 2.2 million tons (+49.1%), 79.5% higher TRS per hectare, and a 96% ethanol mix capturing superior margins amid ethanol premiums over sugar. Production costs rose to 12.9 cts/lb from cost dilution challenges, BRL appreciation, and third-party cane sourcing, yet EBITDA expanded. Food & Agriculture weakened to $1.4 million (-91.9%) on lower commodity prices (4-46% declines) and higher USD costs from carry-over stocks, though harvesting progress and milk volume gains offer recovery potential. Corporate expenses included $3.5 million one-off from Tether's tender offer. Balance sheet reflects Profertil's ~$400 million final payment, lifting Net Debt to $1.63 billion (pro forma 3.2x LTM Adj. EBITDA), with leverage reduction targeted via Fertilizers upside. Management highlights urea price surge (~55% since Middle East conflict, CFR Brazil ~$725/ton) enabling margin expansion given fixed costs, stronger-than-expected 2026 EBITDA, low-double-digit 2026 crushing growth, and grains/milk improvements. GAAP profit was $43.8 million ($0.28 diluted EPS), supported by $49.3 million net financial results. Capex hit $485.0 million, mostly expansion for Profertil. Annual $35 million dividend approved underscores capital return commitment.