Q2 FY2026
Filed Aug 11, 2026Adjusted EBITDA at $172.5 million in 2Q26 and $258.3 million in 6M26; higher urea production, stronger cane availability and ethanol maximization.
Pro forma Adjusted EBITDA increased 52.4% in 2Q26 as Fertilizers Adjusted EBITDA more than doubled, offsetting lower Sugar, Ethanol & Energy earnings. IFRS revenue increased 39.0% and profit for the period was $25,246 thousand versus a loss in 2Q25.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenueother | $531,011 thousand | – | 39.0% |
| Gross Salesother | $534,728 thousand | – | (2.1)% |
| Margin on Manufacturing and Agricultural Activities Before Operating Expensesother | $174,785 thousand | – | 134.3% |
| Profit from operationsother | $91,954 thousand | – | 1,514.6% |
| Profit for the periodother | $25,246 thousand | – | (248.1)% |
| Adjusted EBITDAnon-GAAP | $172,541 thousand | – | 52.4% |
| Adjusted EBITDA Marginnon-GAAP | 32.8% | – | 56.0% |
| Adjusted EBITnon-GAAP | $91,411 thousand | – | – |
| Adjusted Net Incomenon-GAAP | $29,134 thousand | – | 170.0% |
| Adjusted Net Income per Sharenon-GAAP | 0.20 | – | 92.0% |
| Net cash generated from operating activitiesother | $124,953 thousand | – | (3.1)% |
| Net cash used in investing activitiesother | $(25,187) thousand | – | 5.7% |
| Net cash used in financing activitiesother | $31,073 thousand | – | (129.5)% |
| Maintenance capital expendituresother | $31,616 thousand | – | (35.2)% |
| Expansion capital expendituresother | $20,902 thousand | – | (10.1)% |
| Total capital expendituresother | $52,518 thousand | – | (27.1)% |
| Cash and cash equivalentsother | $302,463 thousand | 75.3% | 67.5% |
| Gross Debtnon-GAAP | $2,017,718 thousand | 8.7% | 123.0% |
| Net Debtnon-GAAP | $1,687,211 thousand | 3.7% | 141.3% |
| Net Debt/LTM Adjusted EBITDAnon-GAAP | 3.0x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sugar, Ethanol & EnergyLower sugar selling volumes and prices, together with lower ethanol volumes sold as inventories were built. Crushing totaled 3.5 million tons and ethanol maximization supported a 68% ethanol mix. | $127,479 thousand | – | (30.3)% |
| FertilizersHigher urea prices of $699/ton and 21.6% greater urea production, supported by zero downtime during the quarter, increased sales and cost dilution. | $185,471 thousand | – | 20.1% |
| Food & AgricultureHigher volumes sold, better soybean prices following the temporary suspension of export taxes, and margin improvement as the new crop began to be commercialized. | $213,309 thousand | – | 6.0% |
2026 outlook
- NoteSugar, Ethanol & Energy: Assuming normal weather, low-double-digit growth in 2026 crushing volume versus 2025.
- NoteSugar, Ethanol & Energy: 75% of sugar production hedged at 15.7 cts/lb and 16% of next year's at 17.4 cts/lb.
- NoteSugar, Ethanol & Energy: 41% of year-to-date ethanol production stored in tanks to profit from higher expected prices.
- NoteFertilizers: Expect a strong Adjusted EBITDA in 2026, exceeding prior years.
- NoteFood & Agriculture: Expect margins to improve in the coming quarters as the new crop is commercialized.
- NoteLeverage: Intend to continue reducing the leverage ratio through higher expected Adjusted EBITDA generation, mainly from Fertilizers operations.
Capital returns
- Paid the first installment of $17.5 million (∼$0.1213 per share) on May 19, 2026 to shareholders of record on May 4.
- The second installment shall be payable in November 2026 in an equal cash amount.
- Total annual cash dividend: $35 million.
- Dividends to shareholders in 2Q26: $(17,500) thousand.
What drove it
- Fertilizers Adjusted EBITDA was $121,215 thousand, up 109.7% on a pro forma basis, driven by higher urea production, higher selling prices and cost efficiencies.
- Sugar, Ethanol & Energy crushed 3,540,671 tons, up 2.8%, while year-to-date crushing increased 16.8% to 5,760,248 tons.
- Ethanol production represented a 68% mix in 2Q26 and a 78% mix in 6M26, reflecting ethanol margins above sugar margins.
- Food & Agriculture 2Q26 Adjusted EBITDA was $4,875 thousand, up 351.0%, supported by higher volumes and soybean prices.
- Caarapó Mill acquisition agreement has an estimated transaction price of R$760 million (approximately US$148 million), subject to adjustments, with closing expected before October 1, 2026.
Concerns
- Sugar, Ethanol & Energy Adjusted EBITDA declined 21.8% to $53,226 thousand as net sales fell 30.3% and biological-asset mark-to-market results reflected lower Consecana prices.
- Sugar net sales declined 57.6%, reflecting lower volumes and a 22.1% decline in price per unit.
- Sugar, Ethanol & Energy production cost excluding depreciation and amortization increased to 10.4 cts/lb from 9.0 cts/lb in 6M25, driven by Brazilian Real appreciation and higher diesel prices.
- Food & Agriculture 6M26 Adjusted EBITDA declined 64.9% to $6,227 thousand, as lower commodity prices and higher U.S. dollar costs offset higher volumes.
- Net Debt increased 3.7% from 1Q26 to $1,687,211 thousand, which the company attributed to first-half working-capital seasonality.
- Urea prices returned to mid-cycle levels after peaking during April at ∼$800/ton; CFR Brazil was trading at ~$480/ton on average as of the release date.
What to watch
- Execution against the full-year crushing target and the stated low-double-digit 2026 crushing-volume growth expectation.
- Realization of values from the 41% of year-to-date ethanol production held in inventory.
- Urea pricing following the decline from April peak levels and the effect on Fertilizers Adjusted EBITDA.
- Working-capital reversal during the second half as the company commercializes the new crop.
- Closing and integration of the Caarapó Mill acquisition, which is expected to increase annual Sugar, Ethanol & Energy crushing capacity to over 18 million tons.
- Progress in net debt reduction and the Net Debt/LTM Adjusted EBITDA ratio.
Balance sheet and cash flow
- Cash and cash equivalents at June 30, 2026: $302,463 thousand.
- Short-Term Investments at June 30, 2026: $28,044 thousand.
- Short-Term Debt at 2Q26: $440,039 thousand.
- Long-Term Debt at 2Q26: $1,577,679 thousand.
- Net Debt at 2Q26: $1,687,211 thousand.
- 6M26 net cash generated from operating activities: $122,372 thousand.
- 6M26 net cash used in investing activities: $(451,240) thousand, including $(401,832) thousand for acquisition of business, net of cash acquired.
- 6M26 net cash used in financing activities: $247,654 thousand.
- 6M26 total capital expenditures: $543,113 thousand, including $456,125 thousand of expansion capital expenditures.
- Total assets at 6M26: $5,248,346 thousand.
- Total shareholders equity at 6M26: $1,878,580 thousand.
Analysis
Adecoagro reported a strong second quarter under IFRS, with revenue of $531,011 thousand, up 39.0%, and profit for the period of $25,246 thousand compared with a $(17,043) thousand loss in 2Q25. Pro forma Adjusted EBITDA was $172,541 thousand, up 52.4%, and the Adjusted EBITDA Margin expanded to 32.8% from 21.0%. The profit improvement followed higher operating profitability, although financial results, net were $(57,290) thousand and income tax was $(9,418) thousand.
Fertilizers was the principal earnings driver. Segment Adjusted EBITDA reached $121,215 thousand, up 109.7% on a pro forma basis, as urea production increased 21.6% to 340 thousand tons and the average urea selling price rose to $699/ton from $444/ton. Total Fertilizers sales increased 20.1% to $185,471 thousand despite urea sales volume declining 27.7%. Management also cited cost efficiencies and greater production-related cost dilution.
Sugar, Ethanol & Energy results were weaker despite improved operating throughput. Crushing increased 2.8% to 3,540,671 tons and the company shifted output toward ethanol, with a 68% ethanol mix. However, segment net sales declined 30.3% to $127,479 thousand and Adjusted EBITDA fell 21.8% to $53,226 thousand. Lower sugar volumes and prices, lower ethanol volumes sold while inventories were built, lower Consecana prices and a higher production cost per pound pressured the segment. Food & Agriculture improved sequential commercial activity in the quarter, with sales up 6.0% and Adjusted EBITDA up 351.0%, but its 6M26 EBITDA remained below the prior-year period due to lower commodity prices and higher U.S. dollar costs.
Cash generation remained positive but capital deployment was substantial. Net cash generated from operating activities was $124,953 thousand in 2Q26, while 6M26 investing cash outflow was $(451,240) thousand, including $(401,832) thousand for acquisition of business, net of cash acquired. Net Debt was $1,687,211 thousand, up 3.7% from 1Q26, while the pro forma Net Debt/LTM Adjusted EBITDA ratio improved to 3.0x from 3.2x. The company paid $17.5 million as the first installment of its stated $35 million annual cash dividend.
The outlook emphasizes higher crushing volume, ethanol inventory monetization, strong 2026 Fertilizers EBITDA and margin improvement in Food & Agriculture. The Caarapó Mill transaction is expected to close before October 1, 2026, subject to customary conditions, and would raise annual Sugar, Ethanol & Energy crushing capacity to over 18 million tons after integration. Near-term attention centers on urea prices after their retreat to mid-cycle levels, the commercialization of stored ethanol and crops, and the expected second-half working-capital reversal.
Not in the filing
stated, not guessed- GAAP or IFRS earnings per share.
- GAAP or IFRS diluted earnings per share.
- Free cash flow.
- A consolidated gross-margin percentage.
- Quarter-over-quarter revenue comparison.
- Quarter-over-quarter Adjusted EBITDA comparison.
- Prior outlook section for comparison with actual results.
- Named executive quotes in the filing.
- Formal consolidated revenue, margin, operating-expense or tax-rate numerical guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.