AGRO

Good morning, ladies and gentlemen, and thank you for waiting. At this time, we would like to welcome everyone to Adecoagro's 2026 first quarter results conference call. Today with us we have Mr. Mariano Bosch, CEO; Mr. Emilio Gnecco, CFO; Mr. Renato Junqueira Pereira, Sugar, Ethanol and Energy VP; and Mrs. Victoria Cabello, Investor Relations Officer. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question and answer section. At that time, further instructions will be given. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Adecoagro's management and on information currently available to the company.

They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Adecoagro and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Mariano Bosch, CEO. Mr. Bosch, you may begin your conference.

Good morning, and thank you for joining Adecoagro's first quarter 2026 results conference. Today, we are presenting the first results from the new Adecoagro, a well-diversified agro-industrial platform composed of three segments: sugar, ethanol and energy; fertilizers; and food and agriculture. The BRL 86 million adjusted EBITDA generated already reflects the change in scale and earnings potential, with further upside ahead. After the major maintenance turnaround in the fertilizer plant, we are pleased with the ramp-up of operations, with the plant operating at full capacity since then. Due to the conflict in the Middle East, urea prices have spiked and we are progressively capturing the upside, leading to an even better than expected result. In Brazil, we achieved a new first quarter crushing record, reflecting the returns on our planting expansion investments.

The high flexibility of our mills enable us to produce almost 100% ethanol, benefiting from better ethanol prices. Harvesting pace remains on track to meet our annual target, supporting further cost dilution. In food and agriculture, results reflect the end of the prior harvest season as we sold our carryover stocks. The harvest of the new crop is well advanced, presenting good productivity indicators. Margins should improve in the coming quarters as we commercialize the new crop, supported by a more efficient cost structure. 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.

To conclude, I want to reiterate my gratitude to everyone across Adecoagro. It is thanks to their hard work that we are able to navigate different commodity cycles and continue to deliver attractive results to our shareholders. Now, I will let Emilio walk you through the numbers of the quarter.

Thank you, Mariano. Good morning, everyone. Before turning to the results of the quarter, I would like to briefly remind everyone that as part of our efforts to update and simplify how we view our operations starting in January 2026, the company now operates under three reportable segments. Number 1, the Sugar, Ethanol and Energy segment. Number 2, the Fertilizers segment, which reflects Profertil's results. Number 3, the Food and Agriculture segment, an integrated platform focused on agriculture and food production that was previously reported across three separate verticals: crops, rice, and dairy. Please now turn to page 4, where you can see our first quarterly results under this new organizational structure. Gross sales totaled $394 million in the first quarter, representing a 22% year-over-year increase.

This growth was driven primarily by a strong performance in our fertilizers business, supported by higher production volumes and slightly improved prices, together with higher ethanol and energy prices in our Sugar, Ethanol and Energy operations. These factors more than offset the lower prices across the remainder of our commodity portfolio, including sugar, peanuts and rice. Adjusted EBITDA reached $86 million, more than doubling the level reported in the prior year. In addition to higher sales, results benefited from a first quarter crushing record and our operational flexibility to produce nearly 100% ethanol throughout the period, combined with lower natural gas sourcing costs, which is the main input for urea production. Moving to the financial and operational performance of our operations, let's start with the Sugar, Ethanol, and Energy segment on slide six.

Due to the rainfall received in the final months of 2025, the cane that remained unharvested recovered meaningfully in yield and was collected during the first quarter under our continuous harvest model, one of our key competitive advantages versus other players. 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. In terms of product mix, we reached a 96% ethanol mix during the quarter as ethanol prices traded substantially above global sugar prices and therefore offered superior margins. This highlights the operational flexibility of our industrial assets, even while maintenance work was being carried out.

On the cost side, production costs were negatively impacted by the appreciation of the Brazilian real and by the acceleration of certain agricultural expenses that were typically concentrated later in the year, which more than offset the cost dilution from higher crushing. Although we maximized ethanol production and executed sales at higher prices than in the prior year, quarterly sales were below last year, mainly due to lower sugar sales reflecting weaker global prices and lower volumes sold. 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. On page 8, we present the fertilizer segment.

The year-over-year increase in urea production was primarily driven by a higher number of operational days compared to the same period last year. As mentioned in our previous call, the fertilizer plant experienced 19 days of downtime during the first quarter of 2025, mainly due to adverse weather conditions that disrupted gas supply. This quarter, we recorded only 10 days of downtime as we ramped up operations following the major maintenance turnaround executed at year-end. As of today, the plant is operating continuously at full capacity. In terms of sales, the 68% year-over-year increase was mainly driven by a 16% improvement in urea prices. Following the escalation of the conflict in the Middle East, a region that accounts for approximately 30% of global urea trade, prices began rising sharply in early March, which only a partial impact reflected in this quarter results.

As a result, adjusted EBITDA showed a strong year-over-year recovery, reaching $53 million. In addition to higher sales, performance also benefited from greater cost dilution due to the increase in production and lower gas sourcing costs as we leveraged contractual flexibility to secure a portion of our gas supply at more competitive prices. Looking ahead, we expect adjusted EBITDA in 2026 to be stronger than previously anticipated, potentially exceeding prior year levels supported by a favorable market price outlook. Please move to page 10. In our Food & Agriculture segment, first quarter results were impacted by lower commodity prices, mainly in peanuts and rice, as well as by higher costs in US dollar terms as we finalized the sale of carry-over inventories from the previous harvest season.

Regarding the 2025/2026 campaign, we are currently in the harvesting phase, which we expect to complete over the coming months. As of today, more than half of the planted area has been harvested, resulting in over 700,000 tons of agricultural products. In our dairy operations, processing volumes increased year-over-year, driven by higher raw milk production at our free-stall facilities, reflecting improved cow productivity. We expect margins to improve over the coming quarters as the new crop is harvested and commercialized, reflecting the cost initiatives implemented. In dairy, we also anticipate further growth in processed milk volumes supported by the launch of new products under our retail brands. Please turn to page 12 of the presentation, where we outline our capital allocation strategy, starting with our CapEx program.

During the first quarter of 2026, we paid the final installment related to the acquisition of a 90% equity stake in Profertil. As a reminder, the $1.1 billion transaction was financed through a combination of $400 million in cash on hand, $400 million in new long-term debt facilities, and $300 million in equity proceeds. On the following page 13, we present our debt profile. Our net debt increased to $1.6 billion in the first quarter of 2026, reflecting the seasonal working capital requirements associated with planting and harvesting activities in our food and agriculture business. Excluding this seasonal effect, net debt would have already declined compared to the fourth quarter of 2025. On a pro forma basis, net leverage stood at 3.2 times, consistent with our ongoing deleveraging path supported by improved operating results despite the seasonality in cash needs.

Looking ahead, we expect this metric to continue to decline, driven by higher adjusted EBITDA generation, primarily from our fertilizers segment. It is also worth noting the company's strong liquidity position and full capacity to repay short-term debt. The majority of our indebtedness is in long term, and its currency composition is well aligned with our revenue mix, mitigating currency risk. Finally, regarding shareholder returns, a cash dividend of $35 million was approved. The first installment of $17.5 million will be paid on May the 19th, with the second installment payable in November in an equal amount. Before concluding, I would like to share a brief closing remark. These are the first quarterly results we present under the new corporate structure, representing an important milestone for the company. The performance already reflects a stronger and more resilient platform, supported by increased diversification and a more robust earnings profile.

As shown in the top right pie chart, our revenue base is now more diversified than in the past. This evolution enhances our ability to deliver consistent performance across different cycles, while improving the stability and sustainability of our cash generation. Over the years, we have demonstrated a strong track record of consistent results and cash flow generation, despite commodity price volatility and adverse weather conditions. Today, the company is particularly well-positioned to benefit from upside in fertilizer prices, which could translate into stronger than anticipated results, while we continue to scale up platform and reinforce our strategic relevance within the sector. Thank you very much for your time. We will now open the call to questions.

Thank you. The floor is now open for questions. If you have a question, please write it down in the Q&A section or click on Raise Hand for audio questions. Please remember that your company's name should be visible for your question to be taken. We do ask that when you pose your question, that you pick up your headset to provide optimum sound quality. Please hold while we poll for questions. Our first question comes from Mateus Engfeld with UBS.

Morning. Thank you, Mariano, Emilio, Victoria, Renato. Thank you for your time. My first question on capital allocation midterm, how you think Profertil is, you mentioned that one of the avenues for future growth could be the expansion of the fertilizer capacity from Profertil. Now, how do you think that would be the best path moving forward? I'm thinking particularly whether it would make sense to perhaps find a partner for this in order to accelerate a potential FID. If you could take advantage of investment programs in Argentina in the near term and sort of perhaps take advantage of higher fertilizer prices for longer, if you think a partnership could make sense for that and how to do that.

My second question also on the fertilizer business is sort of trying to understand how the pricing of urea is undergoing in Argentina. Previous comments mentioned pricing at import parity. How are the consumers of your fertilizers really taking this impact in higher urea prices, and how the contracts work, if you set prices at some advanced in time, what's the timeline for that? When do you expect to set prices for the remaining sales for the year? Those are my two questions. Thank you.

Hi, Mateus. Thank you very much for your question. I'm gonna start for your second question, then I would like to re-ask about the first one because some part of it, we couldn't understand.

Going to the fertilizer business and how prices are generated. You mentioned about the import parity, and the import parity in Argentina is because Argentina consumes 2.4 million tons of urea and only produces 1.3, that is 100% produced by Profertil. There's always a need of importing urea. That's why it's clear that there's always gonna be an import parity pricing. The reduction on potential uses of urea are at the most a 10% reduction, we are far away to becoming a net exporter. We'll always be a net importer at this level of production, and the capacity is only that one. That is absolutely clear.

When that urea is needed and when are the needs in Argentina is for wheat and corn, mainly for those 2 crops, then for rice and many other crops. The main drivers are wheat and corn. For wheat, the needs are July, June/July onwards. The need of the usage of fertilizers are starting now or in the following 2 months. In the next 2 months is where the need for wheat are gonna be delivered. During September, October and November is mainly for corn. Those are the 2 moments where the consumption of fertilizer is higher within Argentina. That is how urea is gonna be priced domestically.

Going to the first part of your question, there were some noises, so we couldn't hear you clearly.

Yeah

can you repeat that? Yeah.

Yeah, sure. I'm just thinking on the potential to expand the fertilizer plant, the urea plant with Profertil. You mentioned that this was a potential but sort of a longer term plan. My question is could you find ways to potentially accelerate that given how high prices are in the near term and likely to stay higher for the next couple years? If finding a potential partner, perhaps someone with natural gas, perhaps someone willing to reinvest in Argentina, if that could make sense to accelerate a potential FID? That's my question. Thank you.

Okay. Clear. Thank you, Mateus. In any case, constructing a urea plant needs 4 years. The total timing in general are 5-7 years. In this case, it's difficult to go below 4 years. Taking that into account, the increase in fertilizer prices as of today, we are not expecting that to influence our decision on making a urea plant. Having said this, of course, we are interested on expanding the plant because we do believe on the, being the low-cost producer of urea in that specific area. We do believe that Argentina will be a net exporter of natural gas for many, many years going forward.

There are many projects being developed in the whole gas productions, including Vaca Muerta is the main leading area where the gas is increasing. We do see that happening in Argentina. There are transportations being built and there are more transportations going through Bahía Blanca. That is where we have this port. We do see a great opportunity to expand this plant, so we do believe that makes sense. We also do believe that the region is a net importer of urea. Even in situations like this where the urea price goes up, the region, including Brazil, will import around 10 million tons of urea, and the region only produces 2.5 at the most. There's still a lot of space to be a producer of urea.

This is a project that we are studying in details and we are working on it, but we still don't see exactly when and how we will start to make it happen.

Thank you.

there are several ways of financing, including partners, et cetera, et cetera.

Our next question comes from Isabella Simonato with Bank of America.

Hi. Good morning, everyone. Thank you for the call. I have 2 questions still on the fertilizer business. When we look at the average prices that you guys had in Q1, it looks quite similar to Europe, urea prices in Brazil, right? My question is can we assume that that trend continues into Q2? I mean, when we look at April and May, can we see a high correlation of the prices you've been selling to the prices in Brazil? To that point, can you comment a little bit on how volumes are being sold, I mean, the pace of them. Are you seeing the farmers taking a step back in this moment and trying to delay it a little bit, purchases or not? Just to have a sense of the overall environment.

The second question is on the sugar and ethanol side. You mentioned, right, that costs move up because of effects, but also on some agricultural costs. I assume that since you're crushing more, right, for this year, you have more cane availability, better productivity. I mean, can we think about some normalization or some decline in unitary costs going forward? Thank you.

Hi, Isabella. Thank you for your question. I'm going to address the first one, and then I will ask Renato to take the second one. On the first one, the answer is yes. The urea price is very correlated to the CFR Brazil. The main market of urea is CFR Brazil, that's how we all price urea in the region. You will see a correlation there, and it's easy to look at it. The urea price is always a spot price, and this CFR reflects the spot price of urea. Regarding the pace, as I mentioned before, June, July, and August is where the needs of fertilizers start in Argentina. We don't see that need being reduced.

The most that can be reduced is 10%, we don't even see that reduction happening. We do continue to see producers, and we as producers are using the urea because it is where you see the most or the higher reaction on your productivity at the farms. The higher impact in productivity within fertilizers in general is urea, that's why we continue applying it, we don't see that as a relevant reduction. Going to your second question regarding the sugar and ethanol cost and our expectation for this year, Renato can be more clear here.

Hi, Isabella. We expect a cost reduction in BRL. The reduction is going to be between 10%-15%. I think the mainly factors that will reduce the cost is the volume, as you said, so we are going to have more cost dilution and some efficiency gains that we are having in our operation and also a lower Consecana price. Those facts are more than enough to offset some pressure in costs in fertilizer and diesel costs.

The cost in the quarter is just an anticipation of some agriculture operation that we did because of the weather was in a good conditions to do it, especially weed control and plague control, but this is just the cost that we have in the first quarter, we are not going to have in the future. That's the reason we think it's difficult to measure costs of production by quarter. It makes more sense to see it annually.

Thank you.

Super clear. Thank you very much.

Once again, if you have a question, please write it down in the Q&A section or click on raise hand for audio questions. Our next question comes from Gabriel Barra with Citi.

Hi, everyone. Thanks for taking my questions. I have 2 here. One, I want try and change gears here and understand a little bit better the scenario for the crop season this year. I remember in the last conference call we have talked a little bit about the mix for this crop season. As you have discussed, it seems that the strategy to focus on ethanol, it's up and running. We are seeing ethanol price driving to lower levels in the beginning of the crop given this higher supply. So my question here is trying to understand the company strategy for the mix from now on, given this lower ethanol price and this, let's say, weak sugar price that we are seeing in the market today.

I want to try to understand here, the strategy of the company and the commercialization strategy here for this crop season. The second point, it's, we are seeing this quite strong market for fertilizers. And at the end of the day, we still see the company, given the recent acquisition with net debt to EBITDA close to 3.2 times above, let's say, the comfortable zone that I think that is the, let's say, the sweet spot here for the company in terms of capital structure. How are we should we think about the company, the leverage path, to reach the 2 times net debt EBITDA in the following quarters or even months, given this better scenario for fertilizers?

Do you think that it's feasible to think that we are going to reach this number in the end of the year? Is this the focus of the company right now? How should we think about the capital structure of the company at this point, given the current scenario for commodities? Those are my two questions. Thank you.

Okay. Thank you, Gabriel, for your question. Renato is going to answer your first question regarding the mix and the crop season.

Hi, Gabriel. The year start with a tight ethanol inventory and high prices. That's why we took advantage of this scenario to sell almost our whole production of first quarter and all the carryover until the end of April with prices close to $0.20 per pound equivalent. Since then, with the beginning of the new sugarcane season, ethanol prices have fallen about 20%. This was passed to the pump. The parity rate at the pump today is close to 60%.

We think that this 60% at the pump, it's enough to absorb the ethanol surplus from one year to the other, for the demand of ethanol is going to increase and the hydrous ethanol can reach about 30% of market share. In our case specifically, the 60% of parity rate at the pump is still an ethanol equivalent close to $0.17 per pound. That's why we are still maximizing the ethanol production and we think we are going to keep maximizing maybe for the whole year. At this point, we have stopped selling our ethanol and we are filling our tanks to sell the ethanol in the last part of the year.

Thank you, Renato. Gabriel, regarding your second question on the leverage, I will ask Emilio to answer it.

Hello, Gabriel. Thank you for your question. Well, as you may have seen during the presentation of our quarterly results, we are already showing a reduction in our net debt and even taking into consideration some seasonality of our working capital during the first semester of each year. Now, when we think about our net debt on an annual basis and giving the current scenario for all of the prices of all the commodities that we produce, including the fertilizers, what we thought would be a reduction or bringing down the net debt levels to 2% in the following one or two years, we probably gonna see it by the end of this year.

Hopefully by the end of 2026, we'll be in the levels of 2 times EBITDA on an asset replacement basis.

Thank you.

Very clear. Thank you.

Our next question comes from Bruno Tomazetto with Itaú BBA.

Hey, good morning. Thank you for taking our questions. The first one is regarding your view on El Niño, right? Recent study suggests a stronger event in this year, and we would like to hear more about what you guys are anticipating in both terms of sugar and ethanol segments. Maybe more focused on sugar price and the pace of your heads moving forward, but also for Food and Agri segments, right? You mentioned in the earnings release an average yield expected for crops in 2026. Just wondering what could change in a scenario of a stronger El Niño which arises in the upcoming months. The second one is on Food and Agriculture division.

Just wondering how you guys are looking for the segment in the medium and long terms and considering the lower relevance of results for the consolidated company. Also assuming that the company's already consolidating several operations into a single business unit, just if there could be any opportunity of M&As or divestments more specifically that could make sense, especially now that fertilizers unit has gained a lot of relevance for Adecoagro. That's it. Thank you.

Thank you, Bruno, for your question. Regarding El Niño, there are several aspects that can affect if we have an El Niño year. The main aspect is in terms of prices of the different commodities that we produce. As you know, this can affect positively in terms of sugar prices. If we do have El Niño year, the northern hemisphere can have some less production and that can improve the prices of sugar, basically. That's probably where the higher impact is. In terms of our own productivity, we are not that affected in the sugarcane area. Mato Grosso do Sul is not affected in terms of production by El Niño or La Niña because it is in a neutral area.

In general, that El Niño would mean more rains, and more rains would mean more uses of fertilizer. That can be positive for the fertilizer business as a global comment. That is quickly on El Niño or La Niña, and this apparently looks like an El Niño year that, of course, would potentially be positive. Regarding your question on Food & Agriculture, as we mentioned several times during last year, last year was probably the more difficult year for Food & Agriculture. Food & Agriculture in general, we're having a huge reduction in prices of most of the commodities that we were producing. We're bringing cost of the previous campaign where the cost was higher.

Today we are harvesting, we are in the middle of the harvest of this new campaign where the prices have already gone down. We do expect that going forward in the following quarters, the Food and Agriculture will start generating more relevant results than what you've seen in this quarter, of course. Having said this, we do expect that to continue to improve, and we do like the different businesses that we have. In all of them, we believe we are the low-cost producers. We went through this difficult time and now we are in a good position to take advantage of being the low-cost producers of these different products that we are doing in the whole Food and Agriculture business.

Super clear. Thank you.

Next question from Thiago Duarte.

Hi. Hello, everybody. Thanks for the opportunity. It's just one question here, on, you know, circling back to the discussion about the deleveraging and the confidence of the company into going back to your leverage target by the end of this year instead of a few years ahead, given the positive outlook for some of your businesses. The question is really into what to expect next in terms of in terms of capital allocation, either in terms of speeding up, you know, dividend and share buybacks or eventually thinking about new growth opportunities. Just how you're thinking about it given that you know, the deleveraging might happen sooner than expected. Thank you.

Hi, Thiago. Thank you for your question. Of course, the first focus is on deleveraging. As you've heard us before, we've been always looking to be disciplined. We also do have several projects in each one of our existing businesses that have potential for growth. We were talking about the one particular one that is regarding this expansion of the fertilizer business. There are many interesting projects within our sugar and ethanol business, as you've seen with the biogas and several things that are growing and doing pretty well. We do continue to see interesting projects.

The returns of those projects, we are asking higher returns in order to maintain this level of debt and to continue with our distribution policy or with our dividend policy as we have already mentioned before.

Thank you, Mariano.

This concludes the question and answer section. At this time, I would like to turn the floor back to Mr. Mariano Bosch for any closing remarks.

Thank you all for participating in our call. We are very happy with how the company's going with this new renovated Adecoagro. We hope to see you in our new coming event.

Thank you. This concludes today's presentation. You may disconnect at this time, and have a nice day.

Good morning, ladies and gentlemen, and thank you for waiting. At this time, I would like to welcome everyone to Adecoagro S.A.'s 2025 Results Conference Call. Today with us, we have Mr. Mariano Bosch, Chief Executive Officer; Mr. Emilio Gnecco, Chief Financial Officer; Mr. Renato Junqueira Pereira, Sugar, Ethanol, and Energy Vice President; and Ms. Victoria Cabello, Investor Relations Officer. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question-and-answer section. At that time, further instructions will be given. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Adecoagro S.A.'s management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Adecoagro S.A. and could cause results to differ materially from those expressed in such forward-looking statements. I will now turn the conference over to Mr. Mariano Bosch, Chief Executive Officer. Mr. Bosch, you may begin your conference.

Good morning, and thank you for joining Adecoagro S.A.'s 2025 Results Conference. Today, we are presenting a larger, further diversified, and more resilient Adecoagro S.A., but with the same DNA: being the lowest-cost producer. Upon acquiring Profertil, we became the largest producer of urea in South America. This new operation marked a transformational moment 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 Argentina's largest natural gas reserves. As we rely on natural gas to produce urea, greater extraction will translate into further supply at more competitive prices. We also have a huge market opportunity of reaching a wider demand in South America that today must rely on imports from faraway origins such as the Middle East. Due to the ongoing international conflict, urea prices have peaked and we are very well positioned to capture this upside, as most of our production is still open to market prices and our gas supply remains secure and at a fixed price. 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 Tetra, our controlling shareholder, further reinforcing their commitment to the company's long-term strategy. Given this incorporation, we decided to simplify the way we view our businesses and move to three segments: the Sugar, Ethanol, and Energy business; the Fertilizers business; and the Food and Agriculture business, all of which Emilio will detail shortly. Now, looking back to 2025, it was a challenging year for the agribusiness sector as commodity prices reached the low end of the cycle. Today's prices remain under pressure, but with a focus on efficiency and being the local producer, we will be able to continue navigating the cycle. Higher crushing in Brazil will drive further cost dilution, which will partially mitigate the lower sugar prices. 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 Fertilizers business, driving further cash generation. To conclude, I would like to acknowledge all the people in Adecoagro S.A. for their hard work in this tough context. I am convinced that if we remain focused on being the lowest-cost producer in each of our sustainable production models, we can further expand our earnings potential. I will now turn the call over to Emilio to walk you through the numbers for the year.

Thank you, Mariano. Good morning, everyone. Before entering into the results of the year, I would like to make a preliminary observation with the intention to provide more clarity in the understanding of the numbers we are presenting today. Following the acquisition of Profertil on 12/18/2025, our consolidated interim financial statements incorporate Profertil's income statement only for a 13-day period under a new business unit named Fertilizers. Additionally, in an effort to update and simplify the way we view our business units, from January 2026 the company will change the business segment reporting structure as follows: Segment number one, Sugar, Ethanol, and Energy business as previously known; segment number two, the Fertilizers business, which includes the manufacturing and commercialization of fertilizers; and segment number three, Food and Agriculture business, which reflects an integrated business focused on agriculture and food production that in the past was presented through three separate verticals: Crops, Rice, and Dairy. Please turn to page four where you can see how the acquisition of Profertil supports our scale. On a pro forma annualized basis, consolidating the 2024 and 2025 results of our Fertilizers business, Adecoagro S.A. increased its size from a base of $1.5 billion in recurring revenues and a mid-cycle adjusted EBITDA of more than $400 million and cash generation of $150 million to above the $2.0 billion sales threshold with the potential to generate $700 million in EBITDA and to double its cash generation. 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. Please turn to page five of the presentation. As we have been anticipating over the previous quarters, 2025 was a challenging year marked by lower commodity prices, mixed productivity, and higher costs in U.S. dollars, which resulted in a year-over-year decrease of 2% in sales and 38% in adjusted EBITDA. On top of that, Fertilizers' financial results were affected by two events which resulted in approximately 90 days of downtime: first, Profertil carried out the largest scheduled turnaround of its plant, resulting in a full shutdown of 54 days starting on October 16 and ending on December 8, shortly before our acquisition of the company; and second, a 31-day downtime due to the flooding of a third-party gas distributor that interrupted delivery of gas to the plant. As a result, again on a pro forma basis, assuming full-year results of our Fertilizers business for both 2025 and 2024, revenues were down 6% compared to the prior year, whereas adjusted EBITDA declined by 35% year over year. We expect a full recovery in the Fertilizers business’ adjusted EBITDA as operations return to normalized levels. At Adecoagro S.A., we have always leveraged low-cost production and product and geographic diversification to mitigate commodity price volatility and adverse weather events—two inherent risks within the agribusiness segment. With the incorporation of the Fertilizers segment, we have moved to three equal-size revenue streams and a more diversified and less volatile cash generation across our geographies and products, as shown in the pie charts at the bottom of the slide. Regarding the acquisition of Profertil, we would like to make now a brief summary. Please move to page six of the presentation. We closed the transaction during mid-December for a total consideration of $1.1 billion for the 90% equity interest. From this amount, $676 million had already been paid by December 31, with the remaining balance to be paid during 2026. As of today, the outstanding balance is approximately $50 million that will be settled before the end of this month. The transaction was financed through a combination of cash balances in the amount of $400 million, approximately two new long-term debt facilities of $200 million each with a seven-year tenure, two-year grace period at attractive rates, and an equity issuance of $300 million, marking Adecoagro S.A.'s return to the public markets since its IPO in 2011. At the same time, we continue to invest in organic growth projects throughout our operations as outlined in the box on the right-hand side of the slide. Please direct your attention to page seven where we present our debt profile. Our net debt and net leverage ratio increased compared to prior periods, explained mainly by the financing of the acquisition of Profertil and the lower results of the year. On a pro forma basis, net debt reached $1.5 billion, whereas our net leverage increased to 3.3x compared to 1.2x in 2024. Despite this, it is worth noting the company's full capacity to repay short-term debt with its cash balance. Most of our indebtedness is in the long term, and its currency breakdown matches that of our revenues, mitigating currency risk. Going forward, we intend to reduce our leverage ratio through higher expected adjusted EBITDA generation, mainly from our Fertilizers business, together with a revision of our capital allocation strategy. In this sense, we have reviewed our shareholder distribution program in light of our capital allocation priorities and the lower results generated. Accordingly, our Board of Directors approved the distribution of $35 million in cash dividends for 2026, subject to approval at our Annual General Shareholders' Meeting. Moving to the financial and operational performance of our business units, let us start with the Sugar, Ethanol, and Energy business on slide nine. The weather during 2025 was characterized by above-average rainfall, which reduced the amount of effective milling days and therefore limited our ability to reach a crushing volume in line with 2024. Nevertheless, the cane left unharvested at year end benefited from these favorable rains, showing excellent yields and is currently being harvested under our continuous harvest model while maximizing ethanol production. Cane productivity recovered significantly during 2025, as seen on the graph at the top left of the slide, positively impacting the mark-to-market of our biological assets on greater expected yields for the upcoming quarters. In terms of mix, we achieved a 72% ethanol mix during the quarter and a 58% mix for the full year, as ethanol prices substantially improved during 2025, becoming the product with a better margin. Although we maximized ethanol and largely increased the amount of volume sold at greater prices, annual sales remained below the prior year on lower global sugar prices and volumes sold. Despite the declining milling, our cash cost—which reflects how much it costs us to produce one pound of sugar and ethanol in sugar equivalent—remained unchanged at 12.8¢ per pound. This is explained by a more efficient upgrade of our machinery, which in turn reduced our annual maintenance CapEx, together with an increase in tax recovery given higher ethanol sales. Overall, adjusted EBITDA for the year ended at $292 million, below 2024’s performance. Looking at 2026, we foresee a low double-digit growth in our crushing volumes due to better productivity and a full year of ethanol maximization given the current price scenario. On the following page, 11, we present for the first time the Fertilizers business. As previously mentioned, the acquisition was concluded in mid-December, and therefore, our financial statements only include Profertil’s income statement for a 13-day period. For comparison purposes, we present Profertil’s full-year results and its main drivers. In 2025, as we described earlier today, the fertilizer plant experienced two major stoppages resulting in 90 days of downtime, which adversely affected results. Net sales and adjusted EBITDA declined year over year as fewer operating days throughout the year reduced production volumes, despite higher prices for both urea and ammonia. For 2026, we expect a full recovery in adjusted EBITDA generation driven by normalized operations compared to the prior year and a positive market price outlook. In the case of our farming business—now Food and Agriculture—2025 results were pressured by a combination of lower commodity prices, mainly in rice and peanut, uneven yields, and higher costs in U.S. dollar terms. The top line of this business remained in line versus the previous year due to higher volumes sold, which in turn partially offset declining prices, as seen on slide 13. Nevertheless, adjusted EBITDA was negatively impacted by the increase in costs and an uneven performance at the farm level. Looking ahead, we have implemented cost initiatives to improve margins, including a 22% reduction in total planted area through the renegotiation of our lease agreements. We have also increased the share of rice varieties due to more resilient prices, while also leveraging our production flexibility to produce dairy products for the domestic and export market based on marginal contribution. Before concluding this presentation, I would like to share a few brief closing remarks. Over the years, Adecoagro S.A. has demonstrated a strong track record of delivering consistent results and generating cash flow notwithstanding commodity price cycles and adverse weather events. With the incorporation of the Fertilizers business, we have effectively doubled the size of the company, further enhanced the security and visibility of our cash generation, and positioned Adecoagro S.A. in a new league in terms of scale and relevance. We acquired a state-of-the-art asset and a cash-generating business with immediate earnings contribution and limited execution risk. As a result, we are today a significantly stronger and more resilient company with enhanced diversification and a more robust earnings profile. We are very enthusiastic about the company we are building and the long-term value that this transformation is expected to deliver for all of our stakeholders. Thank you very much for your time. We will now open for questions.

Thank you. The floor is now open for questions. If you have a question, please write it down in the Q&A section or click on “raise hand” for audio questions. Please remember that your company's name should be visible for your question to be taken. We do ask that when you pose your question, you pick up your headset to provide optimum sound quality. Please hold while we poll for questions. Our first question comes from Guillermo Gutia with BTG Pactual. Your microphone is open.

Hi, Mariano. Good morning. So, two questions from our side here, please. The first one is on Fertilizers. You are now starting to operate Profertil at a time when urea prices are actually soaring. So we just want to hear a bit on the fertilizer market today. How are you seeing it? If you expect these higher prices to impact industry volumes in a meaningful way, or we may actually see this price increase maybe flow more directly to Profertil’s margins. So that is the first. And the second one is on the Sugar and Ethanol business. You are now estimating a double-digit growth in sugarcane crushing for this crop year, something that should be largely helped by agricultural yields. So we just want to know how you are seeing the unitary cost going forward, especially since you are going to have a higher dilution from the stronger volumes, but fertilizer prices are also increasing. So those are the two, please.

Thank you, Guillermo, for your question. Number one, I am going to take the question on the Fertilizers business, and then Renato will take the specifics of Sugar and Ethanol. On the Fertilizers business, of course, today the level of prices has increased because of the conflict, and that increase is between 30% to 40%. But before that, fertilizer prices were also good prices for us and for our business model. And today, how these higher prices on urea transform into higher margins for us—that difference goes directly to the final number, to the EBITDA number, or to our cash generation, because all our costs are fixed. Our gas contract, which is 60% of the cost of producing urea, is already fixed, and we have fueling contracts until 2027. So that is pretty easy to calculate and to understand what is the impact of that increase in prices. Having said this, we produce per year, or we should be producing on average, 1.3 million tons per year. From this 1.3 million tons, we have already produced and sold during January and February around 200,000, so 1.1 million are still open to this increase in prices. And we sell almost every month the amount that we are producing. There are some months that we sell more because of the cyclical acquisition from the farmers, so during July, August, and September we sell more than during February and March. So if the prices continue at this level, that 1.1 million tons that are still available for sale will impact directly our final results. So that is basically how we see this, and we see fertilizers for this year at relatively high prices. We have this view that even with the conflict finalizing, fertilizer prices will be impacted for the whole year with the most probability. And then going to your second question on the Sugar and Ethanol business, I will ask Renato to answer that question. Renato?

Hi, Guillermo. We think that our cost can be reduced in approximately 10% to 15%. I think one of the points you just mentioned is the dilution factor. As was mentioned, we had a lot of rains in the last quarter of last year, which improved a lot the outlook for the sugarcane for this year. That is why we are having a very intense first quarter in terms of crushing, producing only ethanol at high prices. So that is the dilution factor. Then, if you go to other points that impact our cost, we think that labor should increase close to inflation. Fertilizer: we have already fixed and bought 70% of our annual need, so we do not see impact until at least mid-year. And diesel, of course, depends on the increase of price of Petrobras, but we have the benefits of the increase of price of gasoline. Also, leasing cost should be lower because of the consequent prices. And more important, we have been working a lot in adjusting our efficiencies, especially in the agriculture part. We have been very disciplined in measuring the efficiency of each machine in the field, so we have reduced the number of equipment to harvest the sugarcane, to plant the sugarcane, so we are doing the same thing with less equipment, which represents less cost. So we are very optimistic we are going to have a good year in terms of cost.

Very clear. Thank you very much, guys.

Our next question comes from Gabriel Baja with SIT. Your microphone is open.

Hi, Adecoagro S.A. team. Thanks for taking my questions. I have two. Mostly, it is a kind of a follow-up from the last question. The first one is about the Fertilizers business. When you think about this new scenario for urea and ammonia price, given the fact that you have a really interesting position in the gas price, and I think China, how should we think about the commercialization strategy for the year, given this much better scenario, but the level of certainty that you have at this point makes this kind of decision more, let us say, challenging in this context. So I would like to understand this strategy for the year. The second point is about another commercialization strategy, but in ethanol. The same case here. You see a really tough situation right now for gas and the price for diesel in the country. You are seeing, even though Petrobras has not changed the gasoline price, gasoline prices increasing in the last two weeks, which means that it seems to be more supportive for ethanol price during this next crop season for the year. So to take advantage of this stronger scenario for ethanol price, how should we think about the mix and the commercialization strategy for ethanol going forward from your point of view? So those are the two questions. Thank you.

Hi, Gabriel. Thank you for asking your question. Renato, do you want to answer the second question on the gasoline prices, etc.?

Okay. So we are more optimistic about the ethanol situation now, that the gasoline price will have to increase. Actually, it is already increasing. In the short term, the prices are very good because the level of inventories is very low. Actually, it is 25% lower than a year ago. That is why, under our continuous harvest model, we are crushing a lot in the first quarter and only producing ethanol. So we are selling ethanol right now close to 20¢ per pound equivalent in Mato Grosso do Sul. When the season really starts, which is mid-April, we believe that the supply of ethanol will increase, something between 3 and 4 billion liters. But part of this is going to be consumed by the lower stocks that I just mentioned. The other part is going to be consumed by the fact that E30 is going to be effective since day one, different from last year. And the other part of the volume is going to be absorbed by a higher market share of hydrous ethanol. If you consider a parity at the pump at 60%, it is still an ethanol equivalent to 16.5¢ per pound in Mato Grosso do Sul, which is still better than sugar now. So that is why we think that we will be maximizing ethanol the whole year, and, of course, with a better price because of the situation of gasoline that you asked.

Thank you, Renato.

Gabriel, and on the Fertilizers business and our strategy on commercialization, in this case you have to take into account that we always follow international prices. South America, this region, imports millions of tons of urea per year, and the region only produces 1.5–1.7 million tons per year. So the net imports are huge. So always the price is determined by international prices. Having said this, most of our strategy is selling domestically within Argentina, because Argentina, in particular, also imports half of the needs that it has per year. So our strategy is to maximize the sales within Argentina but always pricing at import parity. So that is the concept on how we price and all our strategy. And then, as we are producing every month more or less the same amount, and the needs of urea are different—there is a peak in May and another peak in August, September, October of the need that urea has at the fields or in the farms—part of the commercialization strategy includes delivering into the storage capacity in the interior of the different places in order to have this urea ready to be used, strategically. So that is basically how we sell the urea that we are producing all year round.

Thank you, team. Very clear.

Once again, please type in the Q&A or click on “raise hand” for audio questions. Our next question comes from Isabella Simonato with Bank of America. Your microphone is open.

Thank you. Good morning. Thank you. My question is a little bit on the use of capital. As you said, you are much more leveraged than a year ago, and we have a very different cash flow stream profile, and I understand that this higher urea price should accelerate that. So I was wondering how first we should think about CapEx for 2026 and also cash being returned to shareholders. Thank you.

Thank you, Isabella. As you know, we have been always very disciplined on this allocation strategy. So with the acquisition of the Fertilizers business, we have higher leverage to what we have always expressed that is our ideal leverage in terms of times EBITDA. So around 2x is where we would like to be and where we are working to be. But having said this, when there is something very specific, very attractive, as it was the acquisition of the Fertilizers business, and we get into and we can move into this level as we are today, we are very confident that we are going to be able to go to the leverage where we feel comfortable pretty quick, and that is what we are working on. But as Emilio explained, we are continuing with our dividend policy, so we are continuing to distribute in cash dividends $35 million that will be distributed equally in May and November, as we have been doing in the past three or four years. And also, we are analyzing interesting growth projects. Each one of these three lines of business has very attractive and specific growth opportunities, most of them organic growth opportunities and some of them inorganic. But we are always analyzing that. But we will continue to be very disciplined with this general concept of the capital allocation, where some is for returning to shareholders, some to continue to grow, and also to go to the levels of debt of 2x, or around 2x, that is where we feel more comfortable.

Thank you very much.

Our next question comes from Matheus Enfeldt with UBS. Your microphone is open.

Hi, everyone. Thank you for the time and for taking my question. My first question is sort of a follow-up from the previous question, which is: I understand that the near focus is on the deleveraging story, which might be relatively quick given what we are seeing in urea and ethanol prices. So thinking once you do deleverage in two, three years, what is the next growth avenue that you really view from here? Is it expanding more sugarcane crush? Is that a possibility? Or potentially expanding more the capacity in Profertil? And also if there could be M&A in the pipeline once leverage really drops? So that is my first question. And then the second question is: I understand that there is a change in the Food and Agriculture segment on how you perceive the business. It is going to be, I do not know, 30% of your revenues, but a relatively small contribution to the overall business, but with a lot of complexity. I think ten different commodities that you need to follow. So I am just wondering how you think that these assets fit into Adecoagro S.A.'s midterm portfolio—if there are ways to potentially monetize better the asset, or if you have the appropriate scale in the farming business to really run, or if you could think of JVs or some partnerships. Just on how you think that this fits into your portfolio midterm. Those are my questions. Thank you.

Thank you, Matheus, for your question. I am going to start with the second one and go into the first one. We feel very comfortable with the three business lines that we have today. We think that the Food and Agriculture business is something that has, as you mentioned, sales in that level, and we see a lot of opportunities to continue improving there. And when we think on the margins in terms of EBITDA, that is directly to the cash generation. So we feel very comfortable and enthusiastic on how that business is being transformed into a more cash-generating business. So we do not see anything strategic there on a partnership or anything specific there. We continue to see a lot of advantages in the domestic consumption business, etc., that are improving and working very well. There are some new products that are adding value, and that is very compelling in terms of what is going on there. But having said this, and going to the first part of your question on what is within the most attractive growth avenues that we are seeing today, the Sugar and Ethanol has always been very consistent, and we have this organic growth that we have been talking about and that we have been always analyzing, and we expect that to continue to be there as the returns or the marginal returns are continuing to be attractive. But when we explained to the market and when we were so enthusiastic on our Fertilizers business, it is because we are seeing strategically in South America a huge opportunity in terms of urea production. Argentina has one of the largest gas basins in the world and will become a very important exporter of gas. So one of the big opportunities that we see is to become a larger producer of urea. So, of course, we are analyzing that opportunity of building a new plant, duplicating the plant—what are the growth avenues that we are looking at there on the Fertilizers business. These are investments that are huge in terms of the amount of capital required, and are also very relevant in terms of the engineering of that plant. The time that it takes to build it—it is a three-year project to build a plant like we have today at the minimum, and when you include everything, it is always more of four, or sometimes it is a five-year project to build a plant like what we have today. So that is a huge project, very relevant. We have nothing to announce today rather than that we are very enthusiastic on analyzing deeper the project, the location, the amount of gas, and what is the exact amount of gas, etc. So we can also think about this regime that Argentina has, this special program with some benefits for large investments like this one. So these are the type of potential projects that could appear in the next year or so.

That is super clear. Thank you.

Our next question comes from Lucas Ferreira with JPMorgan. Your microphone is open.

Hi, guys. Two questions. On the Fertilizers business, how to think about the production cost per ton of urea and ammonia this year? Since last year, given the stoppage, I think not only you lost the volumes, but maybe fixed-cost dilution was impacted. So assuming the plant running full-year, and the gas prices you have fixed, what is the cost per ton, more or less, that you imagine for this business? And then, in the long term, how to think about this business? Right now you have fixed costs—obviously, this is a great thing because prices are going up, but it could have gone the other way. So my question is how to think about this business. Is this a business where we will see very high operating leverage, so you work with fixed prices? Is that going to be the business model going forward, or when the contract expires, would you be more spot? Just to understand how to model this long term. And if I may, on the farming business, maybe if you can quickly comment on the outlook for next season. I know it is maybe too early to say, but any improvements you are seeing for the business? And I think you are close to the administration—Argentina administration. Any views on any clue you have on if Argentina, with all the reforms passing, will be able to lower further the export taxes? How to think about that? Thank you.

Thank you, Lucas, for your question. On the second question, in terms of the farming business, in Argentina with this new administration, everything is improving. We are very optimistic on that, and that is why we feel comfortable that with this Food and Agriculture business in general, being able to compete domestically and in the export market will also be very positive. The taxes are being reduced. So that is a very relevant improvement that is going on within Argentina and that will certainly help this business to continue to improve. And that is why I mentioned before that we are still optimistic on this farming and agriculture business for Argentina and Uruguay in the coming future. Going to the first question and regarding the fertilizer and the urea and how we think about the prices, again, this is a very long-term view. This is within our DNA, as we were saying at the beginning. We believe we are the lowest-cost producers in the region of urea when we think on replacing all these imports of 10 million tons of urea that are happening every year in South America. We feel very comfortable that we are within the lower-cost producers, and we have analyzed all over the world the different plants that are producing urea, the different prices of gas, etc., and we are very confident on being the lowest-cost producer. What is this cash cost of producing urea today with this level of 1.3 million tons to be produced in the plant—that is what we think that we can produce stabilized—is within $180 to $190 per ton of urea. And, as you have seen, the prices are much higher, and we do not think that level of price is possible in order to compete with urea in this region. So we are very confident to be the local producer in terms of producing urea; that is why we got involved. We were not seeing that the prices were going to be at this level as we are today. We were always thinking on this long-term view that we have when we get involved into a business.

Perfect. And just to follow up, the $180–$190 includes SG&A as well, so is it kind of EBITDA cost?

No, no. I am talking about cost of product. I am talking about the cash cost.

Okay. Thank you very much.

Our next question comes from Julia Rizzo with Morgan Stanley. Your microphone is open.

Hi. Good morning. Thank you for picking up my question. I would like to hear your thoughts on what you know about the global fertilizer, especially urea production—the dynamics within supply cuts around the key regions close to the Middle East. If you know about anything about supply cuts or supply reduction, and how that can affect or last in the market. And derivative to that is: as the planting season is starting in the Northern Hemisphere, especially Europe and India, and I think, less likely, the U.S., do we know if they have enough urea supplies for this season? Can you give us a sense of the supply-demand disruption that we could be seeing now in urea, given the war and Strait of Hormuz situation?

Hi, Julia. Thank you for your question. Of course, we are following this very closely. There is a lack of urea that is very relevant. Thirty percent of what comes into South America comes from the Middle East and through the Hormuz Strait. So there will be a lack of supply, and that can impact even further what has already been impacted. And also, there is a time needed in order for that to reach—60 days at least since you ask for the urea until it comes to be used. So, yes, it is going to be difficult to supply the whole needs for South America and for the Americas in general. The Americas are importers of urea globally.

So you are saying that it could be a supply shock? Given current inventory levels on the ground, I do not know how much the industry holds inventory for the next season.

Inventories are very low. The inventories are very low.

In South America, but in the Northern Hemisphere, are inventories enough? The Northern Hemisphere, let us say?

The Northern Hemisphere is also under pressure in terms of being importers of urea. I do not remember exactly how much they import, but they import like 5 million tons.

Yes.

And usually, they do not have enough inventories, like a three-month, four-month inventory. I do not know what is the level—inventories in the chain—what usually works.

In China, it is relatively low.

Okay. Interesting. So, yes, that could mean that prices will stay higher for longer until supply gets back on track, right?

Of course, we do not know, but that is a clear possibility.

Okay. I have another question on sugar. If you could help me: I would like to hear your thoughts. Recently, we saw a decline in—or a revision lower from—the Asian harvest. We have Brazil, of course, naturally going max ethanol. We have oil prices reaching over $100—actually, futures even higher. Why do you think it is driven—it is kind of putting up this pressure on sugar prices compared to other commodities, and even a strength in the fundamentals? And what do you see that turning?

That is a good question, Julia. We also do not clearly understand. Renato just explained, the sugar production in Brazil, which is one of the main producers worldwide, is going to be maximizing ethanol. So we expect that to be also transferring to sugar prices in the medium term, but we are not seeing that yet. Renato, can you add something else?

Well, I think it is exactly that. Once the market realizes that Brazil is maximizing ethanol, it is going to have less margin to switch the mix towards sugar, and then the market is going to be more balanced. Then we think there is a potential to increase the price of sugar in the second semester. And if you think in the midterm, we think that the supply is going to decrease because today the sugar price is below most countries' production costs, including most players in Brazil. So we think that it is going to have an impact on supply, so price should react next year, and then probably the low price is not going to last that long.

Okay. Thank you.

This concludes the question-and-answer section. At this time, I would like to turn the floor back to Mr. Bosch for any closing remarks.

Thank you all for participating today, and we hope to see you in our next conferences.

Thank you. This concludes today's presentation. You may disconnect at this time and have a nice day.