AGRO

This article first appeared on GuruFocus. Consolidated Adjusted EBITDA: Reached a new record of $258 million year-to-date and $173 million in the second quarter. Gross Sales: Totaled $535 million in the second quarter and $928 million on an accumulated basis. Sugar, Ethanol, and Energy Adjusted EBITDA: Reached $53 million in the quarter and $94 million year-to-date. Cane Crushing Volume: Crushed 3.5 million tons in the quarter, up 3% year-over-year. Ethanol Mix: Reached 78% ethanol mix year-to-date. Ethanol Inventory: Finished the quarter with about 41% of year-to-date ethanol production stored in inventory. Urea Production: Increased 22% year-over-year in the quarter; year-to-date production reached 617,000 tons. Fertilizer Adjusted EBITDA: More than doubled both in the quarter and on a year-to-date basis. Harvest Progress: Harvested 92% of planted area as of end of July, producing more than 1.1 million tons of crops. Profertil Acquisition Payment: Final payment of approximately $400 million made year-to-date. Net Leverage: Stood at 3x on a pro forma basis. Liquidity Ratio: Improved to 1.9x compared to 1.2x in the previous quarter. Dividend: First installment of $17.5 million paid on May 19, with a second installment of the same amount to be paid in November, totaling $35 million in annual cash dividends. Warning! GuruFocus has detected 9 Warning Signs with AGRO. Is AGRO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Consolidated adjusted EBITDA hit new records, reaching $258 million year-to-date and $173 million in Q2 2026, reflecting strong earnings potential and scale. Fertilizer segment outperformed, with urea production up 22% year-over-year, zero downtime, and EBITDA more than doubling due to higher prices and cost efficiencies. Sugarcane plantation conditions in Brazil are excellent, with crushing volumes up 3% and expectations of low double-digit growth for the full year. The acquisition of Caarapo Mill is viewed as highly accretive, with potential to nearly double crushing volumes and unlock synergies in operational efficiency and cost reduction. Strategic inventory buildup in ethanol (41% of year-to-date production stored) positions the company to capture stronger margins as prices recover, supported by a flexible production mix. Sugar, ethanol, and energy segment EBITDA declined due to lower sugar prices, lower volumes sold, and negative mark-to-market valuation of biological assets. Production costs in the sugar and ethanol segment were negatively impacted by the appreciation of the Brazilian Real, offsetting some cost efficiency gains. Ethanol sales volumes were lower due to a commercial strategy to build inventories amid sharp price declines, temporarily reducing cash flow. Food and agriculture segment results year-to-date still reflect lower commodity prices and higher costs in USD terms, despite quarterly improvements. Net debt peaked seasonally, with pro forma net leverage at 3x, and the Caarapo acquisition adds cash payment obligations, though deleveraging targets remain unchanged. Q: What is the outlook for the Caarapo Mill acquisition, including potential synergies, cost improvements, and crushing volume targets?A: Renato Pereira, VP of Sugar, Ethanol and Energy, stated that Caarapo Mill is seen as an extension of the company's cluster in Mato Grosso do Sul, with the same operational model and competitive advantages. The mill has the potential to almost double its effective crushing, as its capacity is similar to the Ivinhema mill. Synergies include improvements in industrial efficiency (2% higher), time utilization (2% higher), cogeneration exports, and agricultural yields and TRS. The company also expects G&A synergies and benefits from logistics and commercial assets. Regarding costs, Pereira noted that it is still possible to reach a 10% reduction in costs compared to last year, driven by cost dilution from higher crushing volumes, lower leasing costs due to Consecana prices, and headcount reductions from new technologies. Q: How does the company's strategy for selling urea work, and why were sales volumes lower in the second quarter despite higher production?A: CEO Mariano Bosch explained that the company produces 1.3 million tons of urea per year and will sell all of it, as Argentina consumes 2.5 million tons. The strategy is to concentrate sales during September, October, and November when domestic prices are typically highest. In the first half of the year, the company pushed to sell more during the price peak in April and May caused by the Middle East conflict. However, in June, when prices dropped to their lowest, the company deliberately chose not to push sales and instead built inventory to sell at higher prices in July and August. This explains the lower sales volumes in the quarter. Q: What is the company's strategy for ethanol and sugar commercialization given the current low ethanol prices and the recent sugar price rally?A: Renato Pereira explained that ethanol supply was high due to the progress of the sugarcane harvest and corn ethanol, leading to lower prices. The company, like most producers in Brazil, is switching its production mix to maximize sugar, which will decrease ethanol supply. The company is carrying as much ethanol inventory as possible to sell in Q4 and Q1 when prices are expected to recover. For sugar, the market is shifting from a surplus to a deficit, and the company is taking advantage of price rallies to increase hedging. Currently, they are 7% hedged for 2026 at $0.1570 per pound and 16% hedged for 2027 at $0.1740 per pound. Q: How does the Profertil cash cost structure compare to a new greenfield competitor, and what are the plans for the brownfield expansion?A: Mariano Bosch stated that South America imports 10 million tons of urea, and the company produces 1.3 million tons, so there is still significant demand. The competitor's announcement is for production in four to five years. The company believes it will continue to be the lowest-cost producer, as gas is a transparent market and they expect to renew contracts at better prices. The brownfield project has benefits due to synergies with existing assets. The company is continuing engineering work and analysis to understand the real cost of building the plant and how to remain the lowest-cost producer. The expansion is a relevant investment, and the company is focused on how to build it efficiently. Q: What is the outlook for the food and agriculture business, particularly regarding planted area for the 2027 campaign and the impact of El Nino?A: Mariano Bosch stated that the company does not expect significant changes in planted area for the 2027 campaign, as they are focused on maximizing returns and only leasing and planting areas that meet their return criteria. Regarding El Nino, the company expects normalization or improvement in yields, which is welcome and benefits the cost structure. Additionally, El Nino is expected to lead to a recovery in rice prices, which is an important product for the company. The scenario is positive overall, and the need for urea in Argentina is also expected to increase due to more rains. Q: What is the quality of the sugarcane coming with the Caarapo Mill, and what CapEx is needed to increase crushing volumes?A: Renato Pereira stated that the region is very similar to the company's existing region, with the same potential for tons per hectare and TRS. The company will adjust some treatment methodologies, which can be quickly fixed to improve cane quality. There is already between 500,000 and 1 million tons of excess cane in the cluster that can be diverted to Caarapo in the next two to three years. To achieve 6 to 7 million tons of crushing, additional sugarcane planting is required, which is the main CapEx. The industrial assets are almost complete, requiring only small investments. Mariano Bosch added that the plantations are in good condition. Q: What would need to happen globally for sugar prices to return to $0.18-$0.20 per pound?A: Renato Pereira explained that the price recovery will depend on the impact of El Nino on key producing countries like India, Thailand, and Brazil. The market has shifted from a 3 million ton surplus to a 2 million ton deficit, which could be larger depending on weather impacts. India has low stocks and is announcing measures to avoid imports, but this depends on monsoons. In Brazil, despite higher cane availability, there have been interruptions in crushing and lower TRS content than expected. The mix is less sugar-oriented than initially thought. While the world has learned to deal with lower stocks, the fundamentals should eventually prevail and drive prices higher. Q: What is the company's strategy for managing net debt and leverage, especially given the Caarapo Mill acquisition?A: CFO Emilio Gnecco stated that net debt tends to peak at this time of year due to seasonal working capital requirements. Excluding seasonal effects and the $58 million increase in readily marketable inventories, net debt would already be below 2025 year-end levels. Pro forma net leverage stood at 3x, consistent with the deleveraging path. The Caarapo Mill acquisition is not expected to affect deleveraging targets for year-end, given its estimated earnings contribution. The company expects leverage to decline as EBITDA generation increases. The liquidity ratio improved to 1.9x from 1.2x in the previous quarter. Q: Can you provide an update on the cost efficiency improvements for the sugar and ethanol segment, specifically the expected 10%-15% drop in cash costs?A: Renato Pereira stated that For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Adecoagro S.A.? Here are five stocks we like better. Record earnings: Adecoagro reported second-quarter adjusted EBITDA of $173 million and first-half adjusted EBITDA of $258 million, driven primarily by its fertilizer business. Fertilizer momentum: Urea production increased 22% year over year, while higher prices and improved plant utilization more than doubled fertilizer EBITDA. Management expects full-year fertilizer EBITDA to exceed its original projections. Expansion and financial position: The planned Caarapó Mill acquisition is expected to close soon and support higher sugarcane processing, while net leverage stood at 3 times EBITDA and liquidity improved to 1.9 times. 10 best sugar stocks to buy now Adecoagro (NYSE:AGRO) reported record consolidated adjusted EBITDA of $173 million for the second quarter and $258 million for the first half of 2026, led by its fertilizer business as higher production, pricing and operating efficiencies more than offset softer results in sugar, ethanol, energy, food and agriculture. Chief Executive Officer Mariano Bosch said the company’s diversified agro-industrial platform had reached a new level of earnings capacity and scale. He said fertilizer results were stronger than initially projected during the first half, while improved sugarcane productivity in Brazil and higher raw milk production supported operating performance in other businesses. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Gross sales totaled $535 million in the second quarter and $928 million year-to-date. Chief Financial Officer Emilio Gnecco said the company was presenting results on a pro forma basis that assumes its fertilizer business had been part of Adecoagro since the start of 2025, which management said provides a more meaningful year-over-year comparison. Fertilizer operations were the main contributor to the company’s EBITDA growth. Urea production rose 22% from a year earlier during the quarter, supported by higher plant utilization and no downtime. Year-to-date urea production reached 617,000 tons, above the prior-year period, when adverse weather disrupted gas supply and caused 31 days of downtime. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be International urea prices climbed sharply after escalation of conflict in the Middle East, a region that management said accounts for roughly 30% of global urea trade. Prices reached nearly $800 per ton during the quarter, and Adecoagro said it progressively captured the higher prices as it executed sales. As a result, fertilizer adjusted EBITDA more than doubled both quarterly and year-to-date, with margins also benefiting from higher output and operating efficiencies. Although prices have declined from their April and May highs, Gnecco said the business remains on track to generate full-year EBITDA above the company’s original projections because of first-half pricing and a largely fixed cost structure. → First Solar’s Profit Engine Faces a New Policy Test in Washington During the question-and-answer session, Bosch said the company expects to sell its full annual production of 1.3 million tons of urea. He said management accelerated sales in April and May amid the price spike but withheld some sales in June, when prices fell below prior-year levels. The company expects to sell those inventories at higher prices later in the year, particularly during Argentina’s seasonally stronger September-to-November demand period. Adecoagro crushed 3.5 million tons of sugarcane in the second quarter, up 3% year over year despite above-average rainfall, especially in May. Cane yields recovered with improved moisture conditions, although total recoverable sugar levels remained below the prior year. Management said TRS levels have improved steadily during 2026. The company maintained an ethanol-focused production mix during the first half, with ethanol representing 78% of production, due to its premium over sugar. However, domestic ethanol prices weakened amid higher supply, prompting Adecoagro to build inventory rather than sell at prevailing prices. At quarter-end, about 41% of year-to-date ethanol production was held in inventory. The sugar, ethanol and energy segment generated adjusted EBITDA of $53 million in the second quarter and $94 million year-to-date. Gnecco attributed the decline from last year partly to lower sales, lower sugar prices and lower Consecana prices used in the mark-to-market valuation of biological assets. Management maintained its target for low-double-digit growth in full-year crushing volumes. Renato Junqueira Pereira, vice president of sugar, ethanol and energy, said the company still expects to reduce annual production costs by about 10% compared with last year, aided by greater crushing volumes, lower leasing costs, reduced headcount and operational technologies. He said these factors should offset higher diesel and fertilizer costs. The planned acquisition of Caarapó Mill, which remains subject to customary closing conditions, is expected to close in coming weeks. Bosch said the asset would allow the company to process surplus cane from its existing cluster and expand organically. Pereira said the mill could potentially nearly double its crushing volume over time, though reaching 6 million to 7 million tons would require additional sugarcane planting. He said Adecoagro currently has about 500,000 to 1 million tons of cane that could be redirected to Caarapó over the next two to three years. In food and agriculture, Adecoagro had harvested 92% of planted area by the end of July, producing more than 1.1 million tons of crops with yields above the prior campaign. The company expects to finish harvesting during August and has begun winter-crop planting for the next season. Dairy processing volumes increased as raw milk production at free-stall facilities improved with better cow productivity. While year-to-date results continued to reflect lower commodity prices and higher U.S.-dollar costs, quarterly revenue and adjusted EBITDA improved from a year earlier as new-harvest sales began and margins gradually recovered. Bosch said planted area for the 2027 campaign is not expected to change significantly, as the company continues to focus on leasing and planting areas that meet its return thresholds. He added that an El Niño scenario would be favorable for the company’s Argentine operations through improved yields, potential rice-price recovery and increased fertilizer demand. Year-to-date capital deployment included the final approximately $400 million payment for the Profertil acquisition, completed in the previous quarter. Additional investments included sugarcane plantation and biomethane expansion in Brazil, agricultural machinery and a new cheese packaging line at the Morteros dairy facility. Net leverage stood at 3 times EBITDA on a pro forma basis. Gnecco said seasonal working-capital needs and a $58 million increase in readily marketable inventories contributed to higher net debt during the quarter. Excluding those effects, he said net debt would have been below its 2025 year-end level. The company’s liquidity ratio improved to 1.9 times from 1.2 times in the prior quarter. Management said the Caarapó Mill acquisition is not expected to alter its year-end deleveraging target because of the asset’s expected earnings contribution. Adecoagro paid the first $17.5 million installment of its annual cash dividend on May 19, equal to $0.12 per share. A second installment of $17.5 million is scheduled for November, bringing the annual cash dividend to $35 million. Adecoagro (NYSE: AGRO) is a leading agricultural and renewable energy company with core operations in South America. Founded in 2002 by Argentine entrepreneur Alejandro Bulgheroni, the company has grown into a vertically integrated platform covering crop production, sugar and ethanol manufacturing, and dairy operations. Adecoagro’s business model spans the full value chain, from seed selection and planting through harvesting, processing and distribution of commodities. The company manages over 700,000 hectares of farmland across Argentina, Brazil and Uruguay. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Adecoagro Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Archer Daniels Midland Company ADM is gaining from improving biofuels economics, higher crushing margins and investments aimed at expanding processing capacity. The company’s stronger first-half 2026 execution prompted management to raise its full-year earnings outlook, while targeted debottlenecking projects could support additional growth.The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. ADM also has a VGM Score of A, with a Value Score of A, Growth Score of B and Momentum Score of A. The Zacks Style Scores complement the Zacks Rank by evaluating stocks on value, growth and momentum characteristics, with the VGM Score combining the weighted average of the individual Style Scores. ADM reported second-quarter 2026 adjusted earnings of $1.84 per share, up 98% year over year and ahead of the Zacks Consensus Estimate by 29.6%. Revenues rose 7.1% year over year to $22.68 billion. Total segment operating profit increased 75% year over year to $1.45 billion, supported by gains across Ag Services & Oilseeds, Carbohydrate Solutions and Nutrition.The Ag Services & Oilseeds segment benefited from stronger crushing margins and improved asset utilization. Segment operating profit jumped 129% year over year to $867 million, helped by favorable biofuels conditions, elevated energy prices and improved execution. Global oilseed processing volumes increased nearly 5% year over year during the quarter.ADM’s Crushing subsegment delivered a major improvement, with operating profit rising by $330 million from the prior-year quarter. The company cited stronger biofuels margins supported by renewable volume obligations, higher energy prices and solid global demand for soybean meal. Archer Daniels Midland Company price-consensus-eps-surprise-chart | Archer Daniels Midland Company Quote ADM is investing in its existing processing footprint to expand crushing capacity. The company has identified 10 U.S. crush facilities with potential capacity unlocks and is moving ahead with a first phase involving four locations. Management expects these debottlenecking projects to require about one-fourth the capital intensity of a new greenfield facility, with the initial phase potentially requiring around $100 million. The company’s recent capacity investments are aimed at increasing throughput and improving flexibility while supporting renewable fuel demand. ADM expects these upgrades to unlock roughly 700,000 metric tons of additional annual crush capacity across four facilities, creating more than 25 million bushels of new demand for U.S. farmers.ADM is also evaluating ethanol debottlenecking opportunities as improving yields and cost reductions create additional capacity potential. Image Source: Zacks Investment Research Beyond commodity processing, ADM continues to expand higher-margin businesses. Nutrition operating profit increased 51% year over year to $172 million in the second quarter, driven by improvements in both Human Nutrition and Animal Nutrition. Human Nutrition benefited from Flavors growth and progress at the Decatur East plant, while Animal Nutrition gained from operational improvements and portfolio actions.ADM is also pursuing opportunities in natural colors, precision fermentation, biosolutions and decarbonization.Management estimates the U.S. natural-colors transition represents an approximately $1 billion addressable revenue market and is targeting $80 million to $100 million of operating profit over time. Following the strong first-half performance, ADM raised its 2026 adjusted EPS outlook to $5.15-$5.60 from the previous range of $4.15-$4.70. Management expects continued improvement in crushing and ethanol, supported by the biofuels margin environment, while Nutrition is expected to maintain its recovery.The company also expects cost-saving initiatives to contribute over time. ADM remains on track with its enterprise-wide savings program, which targets $500 million to $750 million of aggregate savings over three to five years beginning in 2025. Ingredion Incorporated INGR, meanwhile, is a closer comparison with ADM’s higher-value ingredient operations. INGR converts grains and other plant-based raw materials into starches, sweeteners and specialty ingredient solutions for food, beverage and industrial customers. Adecoagro S.A. AGRO operates across food and agriculture, sugar, ethanol and energy, giving it meaningful exposure to renewable fuels alongside agricultural commodities. Despite the improved outlook, ADM remains exposed to commodity price swings, crush-margin volatility and mark-to-market impacts. Second-quarter results included about $100 million of net positive mark-to-market and timing impacts, which can create earnings volatility depending on market movements.The company also faces uncertainty from trade conditions, geopolitical developments and policy changes that could affect agricultural flows and margins. ADM’s outlook assumes continued North American soybean purchases from China, including progress toward a 25-million-ton U.S. soybean purchase commitment in 2026.With improving earnings trends, capacity expansion plans and favorable Zacks metrics, ADM’s combination of near-term earnings momentum and longer-term investments remains a key factor supporting the stock’s outlook. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Ingredion Incorporated (INGR) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Adecoagro (AGRO) has drawn fresh attention after a volatile stretch for the stock, with shares down about 6% over the past week and roughly 17% over the past month. Over the past 3 months, the stock is up about 12%, while the year to date return is roughly 47% and the past year total return is around 29%. Over 3 and 5 years, total returns are about 32% and 13% respectively. The company reports annual revenue of roughly US$1.5b and net income of about US$13.7m, spanning sugar, ethanol and energy, fertilizers, and broader farming activities across several South American markets. See our latest analysis for Adecoagro. Adecoagro’s recent share price pullback, with the stock down about 17% over the past month after a strong year to date share price return of roughly 47%, suggests investors are reassessing both growth potential and risks after a period of strong total shareholder returns. If you are weighing agricultural exposure against other themes, this could be a good moment to broaden your search and check out 33 elite gold producer stocks With Adecoagro trading around US$11.42 and signals like an intrinsic discount estimate and a gap to analyst targets in play, the key question is simple: is there real upside left, or is the market already pricing in future growth? With Adecoagro last closing at $11.42 against a narrative fair value of about $12.91, the story centers on how future earnings power could bridge that gap using a 7.02% discount rate. Read the complete narrative. Want to see what sits behind that earnings ramp and margin rebuild, and how it feeds into the 2029 profit multiple and fair value math? The full narrative connects revenue growth, margin reset and valuation in a way that simple ratios cannot, and lays out the key assumptions that need to hold for this pricing gap to make sense. Result: Fair Value of $12.91 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear fault lines, with climate related production swings and unhedged sugar and ethanol prices both capable of quickly undermining that earnings narrative. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. The SWS DCF model sees Adecoagro as trading at roughly 71.5% below an estimated fair value of about $40.08. At the same time, the current P/E of 120.1x looks very rich next to a fair ratio of 25.6x, peer levels of 17.5x, and a US Food sector average of 17.7x. Is this a mispricing to lean into or a warning sign to treat with care? See what the numbers say about this price — find out in our valuation breakdown. With mixed signals across valuation models and sentiment, the key question is how you weigh the trade off between risk and reward. To pressure test that view, look closely at the 2 key rewards and 6 important warning signs If you stop with just one stock, you risk missing other opportunities entirely. Take a few minutes to scan broader ideas and sharpen your watchlist. Target potential mispricings by running through companies highlighted in the 49 high quality undervalued stocks. Strengthen your downside protection by focusing on businesses in the 64 resilient stocks with low risk scores. Get ahead of the crowd by reviewing the screener containing 22 high quality undiscovered gems before they hit more radars. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AGRO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Mission Produce Inc. AVO is likely to witness top and bottom-line declines when it reports second-quarter fiscal 2026 results on June 8, after market close. The Zacks Consensus Estimate for fiscal second-quarter sales is pegged at $269.3 million, indicating a 29.2% decrease from the year-ago quarter's reported figure.The consensus estimate for the company's fiscal second-quarter earnings is pegged at 7 cents per share, suggesting a 41.7% decline from the year-ago quarter’s actual. Earnings estimates have been unchanged in the past 30 days.The Oxnard, CA-based company has been reporting steady earnings outcomes, as evident from its top and bottom-line surprise trends in the trailing four quarters. Mission Produce delivered an earnings surprise of 126.5% in the trailing four quarters, on average. Given its positive record, the question is, can AVO maintain the momentum? Our proven model does not conclusively predict an earnings beat for AVO this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Mission Produce has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here. Per Mission Produce, several headwinds are likely to have weighed on its second-quarter fiscal 2026 profitability. Lower avocado prices are anticipated to have compressed per-unit margins, particularly in a single-origin Mexican sourcing environment. On the last reported quarter’s earnings call, the company noted that the California avocado harvest is expected to begin roughly one month later than last year, reducing sourcing flexibility and lowering the utilization at the company’s California packing facilities. On the last reported quarter’s earnings call, management predicted average pricing to be 30-35% below $2.00/lb in second-quarter fiscal 2025. The company cautioned that consolidated adjusted EBITDA will likely be below the prior-year level due to margin and operating pressures.Additionally, the Blueberries segment faces lower volumes due to accelerated harvest timing, earlier pruning and unfavorable weather conditions. Lower yields per hectare have been driving higher production costs, while reduced blueberry volumes are likely to have negatively impacted packhouse utilization in the International Farming segment. Collectively, these factors are expected to have offset the benefits of stronger avocado volumes in second-quarter fiscal 2026.However, Mission Produce’s second-quarter fiscal 2026 results are likely to be shaped by a combination of higher industry volumes, disciplined execution and continued progress across its diversification strategy. Mission Produce has been benefiting from strong structural tailwinds in avocado demand, driven by health-conscious consumers and increasing adoption across households. On the last reported quarter’s earnings call, management highlighted that demand trends remain favorable, supported by rising penetration and consistent consumption growth. Mission Produce, Inc. price-eps-surprise | Mission Produce, Inc. Quote Mission Produce is also expected to have benefited from a highly integrated operating model that spans sourcing, farming, packing, distribution and ripening. This structure allows the company to manage both volume and per-unit margins effectively, even in volatile pricing environments. The integrated model also strengthens customer relationships through consistent supply and value-added services like ripening and category management. By controlling multiple stages of the value chain, Mission Produce can optimize logistics, improve cost efficiency and respond quickly to shifting supply dynamics. On the last reported quarter’s earnings call, management emphasized that despite normalization in avocado pricing, the company is expected to deliver volume growth, margin expansion and EBITDA improvement, highlighting the resilience of its integrated operating model. Management reiterated a constructive multi-year view, supported by volume growth, category tailwinds and the Calavo acquisition.For second-quarter fiscal 2026, management expects avocado industry volumes to rise 10-15% y/y in second-quarter fiscal 2026, driven by a larger Mexican crop and higher harvest yields. While lower prices will pressure revenue comparisons, volume growth is expected to remain strong. Mission Produce’s ongoing investments in vertical integration, digital innovation and geographic diversification are expected to have improved operational efficiency and asset utilization, particularly in its International Farming segment. Beyond avocados, diversification has been an important growth lever. Mission Produce has been improving the utilization of its international asset base through blueberries, third-party fruit packing and expanded mango processing capabilities, which should support operational efficiency over time. Mission Produce’s shares have exhibited a downtrend in the past three months, losing 19.8% against the industry’s growth of 5% and compared with the Zacks Consumer Staples sector’s decline of 3%. Meanwhile, the company has underperformed the S&P 500’s growth of 11.6%.The AVO stock has underperformed industry peers, including Archer Daniels Midland Company ADM, Corteva Inc. CTVA and Adecoagro S.A. AGRO, which have rallied 26.5%, 1.7% and 25.8%, respectively, in the past three months. Image Source: Zacks Investment Research At its current price of $11.08, the AVO stock trades 9.9% above its 52-week low of $10.08. Mission Produce’s current stock price stands 28.7% below its 52-week high of $15.53.From the valuation standpoint, the company trades at a forward 12-month P/E multiple of 17.29X, exceeding the industry average of 15.39X and below the S&P 500’s average of 22.17X. Image Source: Zacks Investment Research The premium valuation suggests that investors have strong expectations for Mission Produce’s future performance and growth potential. However, the stock currently seems somewhat overvalued. As a result, investors may be hesitant to buy at these elevated levels and prefer to wait for a more favorable entry point. Mission Produce remains a global avocado leader, supported by scale, disciplined execution and a diversified sourcing network across Mexico, Peru, Colombia and Guatemala. Its vertically integrated model strengthens supply reliability and helps manage agricultural volatility. The company is also expanding into complementary categories such as blueberries and mangoes, improving diversification and reducing the reliance on a single crop cycle. Investments in farming assets, infrastructure and value-added capabilities should support long-term margin durability. While tariff uncertainty and Mexico-related sourcing risks remain near-term headwinds, Mission Produce’s operational agility, global footprint and strong customer relationships position it well for sustained growth. As Mission Produce reports second-quarter fiscal 2026 earnings release, it is facing a challenging operating environment, marked by lower avocado prices, margin compression, delayed California harvest activity and continued pressure in its Blueberries segment. These factors are expected to weigh on revenues, earnings and EBITDA growth despite favorable industry supply trends.Nevertheless, the company’s vertically integrated business model, strong execution capabilities and diversified sourcing network continue to provide resilience amid market volatility. While near-term results may reflect pricing and operational headwinds, Mission Produce remains well-positioned to capitalize on long-term avocado demand growth, portfolio diversification initiatives and strategic opportunities arising from the pending Calavo acquisition, supporting its broader long-term growth trajectory. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Adecoagro S.A. (AGRO) : Free Stock Analysis Report Corteva, Inc. (CTVA) : Free Stock Analysis Report Mission Produce, Inc. (AVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Adecoagro SA (NYSE:AGRO) reported a significant increase in adjusted EBITDA, reaching $86 million, more than doubling the previous year's level. The company achieved a new first-quarter crushing record of 2.2 million tons of cane, reflecting higher productivity. The fertilizer segment showed a strong year-over-year recovery, with adjusted EBITDA reaching $53 million, supported by higher urea prices and increased production. Adecoagro SA (NYSE:AGRO) anticipates stronger earnings performance and higher cash generation in 2026, enabling faster deleveraging. The company has a strong liquidity position and full capacity to repay short-term debt, with most indebtedness being long-term and well-aligned with revenue mix. Production costs were negatively impacted by the appreciation of the Brazilian Real and accelerated agricultural expenses. Lower sugar sales were reported due to weaker global prices and lower volumes sold. Net debt increased to $1.6 billion in the first quarter of 2026, reflecting seasonal working capital requirements. The food and agriculture segment was impacted by lower commodity prices and higher costs in US dollar terms. The company faces challenges in expanding the fertilizer plant, with construction timelines of four to seven years, making it difficult to capitalize on current high fertilizer prices. Warning! GuruFocus has detected 9 Warning Signs with AGRO. Is AGRO fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the potential expansion of the fertilizer capacity at Profertil and whether a partnership could accelerate this process? A: (CEO, Mariano Bosch) Constructing a urea plant typically takes four to seven years, so current high fertilizer prices won't influence our decision to expand immediately. However, we are interested in expanding due to Argentina's potential as a net exporter of natural gas. We are exploring various financing options, including partnerships. Q: How are urea prices in Argentina being set, and how are consumers reacting to higher prices? A: (CEO, Mariano Bosch) Urea prices in Argentina are set at import parity due to the country's need to import urea. The main demand periods are June-July for wheat and September-November for corn. Despite higher prices, we don't foresee a significant reduction in urea usage. Q: Can you comment on the correlation between your urea prices and those in Brazil, and how are sales volumes progressing? A: (CEO, Mariano Bosch) Yes, urea prices are closely correlated with CFR Brazil prices. Sales volumes are steady, with no significant reduction in demand expected. Fertilizer needs in Argentina typically peak in June-August. Q: With ethanol prices declining, how will this affect your production strategy? A: (Sugar, Ethanol and Energy VP, Renato Junqueira Pereira) Despite a 20% drop in ethanol prices, we continue to maximize ethanol production due to favorable pump prices. We are currently storing ethanol to sell later in the year. Q: Given the strong market for fertilizers, how do you plan to manage your leverage and capital structure? A: (CFO, Emilio Nieco) We are already reducing net debt and expect to reach our leverage target of 2x net debt to EBITDA by the end of 2026, earlier than anticipated, due to favorable commodity prices. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Adecoagro S.A. reported first-quarter 2026 results on May 11, with sales rising to US$398.68 million and net income to US$40.14 million, supported by record crushing volumes and a high ethanol mix. An important shift was the Fertilizers segment emerging as the main earnings engine after the Profertil acquisition, with urea production and pricing lifting adjusted EBITDA and supporting management’s focus on debt reduction and cash dividends. We’ll now examine how this fertilizer-led earnings strength after the Profertil acquisition affects Adecoagro’s previously balanced risk‑reward investment narrative. We've uncovered the 13 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Adecoagro today, you need to believe the Profertil acquisition and fertilizer-led earnings can complement, not replace, its core sugar, ethanol, and farming cash flows. The main near term catalyst is whether fertilizer margins and record crushing translate into sustained cash generation for deleveraging. The biggest risk is that higher leverage and commodity exposure amplify earnings volatility. Q1 2026 improves visibility on the catalyst but does not materially reduce the underlying risk. The Q1 2026 earnings release, with Fertilizers now the largest EBITDA contributor after the Profertil deal, is the key update for this story. It sits alongside the April 2026 dividend decision, where Adecoagro approved a smaller US$17.5 million cash dividend, underlining management’s current priority for balance sheet repair even as fertilizer-driven earnings recover. Yet investors should be aware that if Profertil’s urea pricing tailwind reverses and fertilizer earnings soften... Read the full narrative on Adecoagro (it's free!) Adecoagro's narrative projects $2.3 billion revenue and $188.5 million earnings by 2029. Uncover how Adecoagro's forecasts yield a $12.91 fair value, in line with its current price. Some of the most pessimistic analysts were assuming Adecoagro would only reach about US$2.3 billion in revenue and US$146.5 million in earnings by 2029, and they see risks like Profertil dependence and urea price swings very differently from the more balanced narrative above, so it is worth comparing these views in light of the latest fertilizer driven quarter. Explore 4 other fair value estimates on Adecoagro - why the stock might be a potential multi-bagger! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Adecoagro research is our analysis highlighting 2 key rewards and 6 important warning signs that could impact your investment decision. Our free Adecoagro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Adecoagro's overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Find 44 companies with promising cash flow potential yet trading below their fair value. Uncover the next big thing with 27 elite penny stocks that balance risk and reward. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AGRO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Adecoagro S.A.? Here are five stocks we like better. Adecoagro’s Q1 2026 adjusted EBITDA more than doubled to $86 million, driven by the first quarter under its new three-segment structure after acquiring a controlling stake in Profertil. Gross sales also rose 22% year over year to $394 million. The Fertilizers segment was the biggest earnings driver, with adjusted EBITDA of $53 million and sales up 68% on higher urea production, better pricing, and lower natural gas costs. Management said the plant is now operating continuously at full capacity and expects stronger 2026 EBITDA than previously anticipated. Debt reduction remains a top priority after the Profertil acquisition pushed net debt to $1.6 billion and pro forma leverage to 3.2x. Adecoagro now expects leverage to fall to about 2x EBITDA by the end of 2026, while also approving a $35 million cash dividend. 10 best sugar stocks to buy now Adecoagro (NYSE:AGRO) reported a sharp increase in first-quarter 2026 adjusted EBITDA as the company presented its first quarterly results under a new three-segment structure following the acquisition of a controlling stake in Profertil. Chief Executive Officer Mariano Bosch said the quarter reflected the “new Adecoagro,” now organized around Sugar, Ethanol & Energy; Fertilizers; and Food & Agriculture. The company generated $86 million in adjusted EBITDA in the quarter, more than double the prior-year level, while gross sales rose 22% year over year to $394 million. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Bosch said the results showed “the change in scale and earnings potential” of the expanded platform, with further upside expected from higher urea prices, stronger sugarcane crushing volumes in Brazil and improved margins in Argentina and Uruguay. Chief Financial Officer Emilio Gnecco said the Fertilizers segment, which reflects Profertil’s results, was a key contributor to the quarter’s performance. Adjusted EBITDA in the segment reached $53 million, supported by higher urea production, improved prices and lower natural gas sourcing costs. → MercadoLibre Boldly Invests in Growth: Discount Deepens Gnecco said urea production increased year over year because the plant had more operational days than in the same period last year. In the first quarter of 2025, the fertilizer plant had 19 days of downtime, mainly because adverse weather disrupted gas supply. In the latest quarter, downtime fell to 10 days as operations ramped up following a major maintenance turnaround at year-end. “As of today, the plant is operating continuously at full capacity,” Gnecco said. → 3 Small-Cap Stocks to Buy as the Russell 2000 Extends Its Rally Sales in the Fertilizers segment rose 68% year over year, mainly due to a 16% improvement in urea prices. Gnecco said prices began rising sharply in early March after the escalation of conflict in the Middle East, a region that accounts for about 30% of global urea trade. He said only a partial impact from those higher prices was reflected in first-quarter results. Looking ahead, Gnecco said the company expects 2026 adjusted EBITDA in Fertilizers to be stronger than previously anticipated and potentially above prior-year levels, supported by a favorable market price outlook. In the Sugar, Ethanol & Energy segment, Adecoagro posted adjusted EBITDA of $41 million, exceeding the prior-year quarter. The company crushed 2.2 million tons of cane in the first quarter, a 49% increase year over year and a record for the period. Gnecco said the increase was driven by higher productivity despite harvesting a smaller area. Rainfall late in 2025 helped unharvested cane recover in yield, and the company collected it during the first quarter under its continuous harvest model. Adecoagro produced a 96% ethanol mix during the quarter as ethanol prices traded well above global sugar prices, offering better margins. Gnecco said the mix demonstrated the flexibility of the company’s industrial assets, even while maintenance work was underway. Production costs were negatively affected by appreciation of the Brazilian real and the acceleration of certain agricultural expenses typically concentrated later in the year. Those factors more than offset cost dilution from higher crushing during the quarter. During the question-and-answer session, Renato Pereira, vice president of Sugar, Ethanol & Energy, said Adecoagro expects cost reductions in Brazilian reais of 10% to 15% for the year, helped by higher volumes, operating efficiencies and a lower Consecana price. He said some first-quarter costs reflected early agricultural work, including weed and pest control, made possible by favorable weather. Pereira also said the company took advantage of high ethanol prices early in the year to sell nearly all first-quarter production and carryover volumes through the end of April at prices close to $0.20 per pound equivalent. After ethanol prices fell about 20% with the start of the new sugarcane season, Adecoagro stopped selling ethanol and began filling tanks for sales later in the year. He said the company still expects to maximize ethanol production, potentially for the full year. The Food & Agriculture segment was affected by lower commodity prices, particularly peanuts and rice, and higher costs in U.S. dollar terms as the company sold carryover inventories from the previous harvest season. Gnecco said the 2025/2026 harvest is underway and expected to be completed over the coming months. More than half of the planted area had been harvested at the time of the call, producing more than 700,000 tons of agricultural products. In dairy, processing volumes increased year over year because of higher raw milk production at free-stall facilities, reflecting improved cow productivity. Gnecco said margins should improve in coming quarters as the new crop is harvested and commercialized, while dairy volumes should benefit from new products under the company’s retail brands. Asked about the medium- and long-term outlook for Food & Agriculture, Bosch said the prior year had been “probably the more difficult year” for the segment because of lower prices across several commodities and higher-cost inventories from the previous crop cycle. He said Adecoagro expects the segment to generate more relevant results in coming quarters and remains confident in the businesses because the company believes it is a low-cost producer in each area. Adecoagro paid the final installment for its acquisition of a 90% equity stake in Profertil during the quarter. Gnecco said the $1.1 billion transaction was financed with $400 million in cash on hand, $400 million in new long-term debt facilities and $300 million in equity proceeds. Net debt rose to $1.6 billion in the first quarter, reflecting seasonal working capital needs tied to planting and harvesting in Food & Agriculture. Gnecco said net debt would have declined versus the fourth quarter of 2025 excluding that seasonal effect. Pro forma net leverage stood at 3.2 times. Gnecco said the company expects leverage to continue declining due to higher adjusted EBITDA generation, primarily from Fertilizers. In response to an analyst question, he said the company now expects to reach about 2 times EBITDA by the end of 2026, sooner than the prior expectation of one to two years. Bosch said deleveraging remains the company’s first focus. He added that Adecoagro continues to evaluate growth projects across its businesses, including a possible long-term expansion of the fertilizer plant, but said building a urea plant generally requires several years and current high urea prices are not expected to drive a near-term decision. The company also approved a $35 million cash dividend, with a first installment of $17.5 million scheduled for May 19 and a second equal installment payable in November. Adecoagro (NYSE: AGRO) is a leading agricultural and renewable energy company with core operations in South America. Founded in 2002 by Argentine entrepreneur Alejandro Bulgheroni, the company has grown into a vertically integrated platform covering crop production, sugar and ethanol manufacturing, and dairy operations. Adecoagro’s business model spans the full value chain, from seed selection and planting through harvesting, processing and distribution of commodities. The company manages over 700,000 hectares of farmland across Argentina, Brazil and Uruguay. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Adecoagro Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

LUXEMBOURG, May 11, 2026 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the first quarter ended March 31, 2026. The financial information contained in this press release is based on consolidated interim financial statements presented in US dollars and prepared in accordance with International Financial Reporting Standards (IFRS) except for Non-IFRS measures. Please refer to page 10 for a definition and reconciliation to IFRS of the Non-IFRS measures used in the earnings release. Main highlights for the period: Strong year-over-year performance in our Fertilizers operations on higher production and prices. First-quarter crushing record in our Sugar, Ethanol & Energy operations and almost 100% ethanol mix. Higher urea, ethanol and energy prices more than offset the decline in prices across the rest of our product portfolio, including sugar, peanut and rice. On a pro forma basis, Net Debt/LTM Adj. EBITDA stood at 3.2x, reflecting the full payment of the purchase price for our acquisition of Profertil, and working capital seasonality. Going forward, we intend to continue reducing our leverage ratio driven by higher expected Adjusted EBITDA generation, mainly from our Fertilizers operations. Business Segment Redefinition As stated in our 2025 year-end Earnings Release, the Company reassessed and updated the Group's internal organizational structure following the acquisition of Profertil S.A. Effective January 1, 2026, the Company operates three reportable segments: the Sugar, Ethanol and Energy segment, the Fertilizers segment (which captures Profertil's results), and the Food & Agriculture segment. The latter includes the agricultural and related food activities that were previously managed and presented through separate verticals, including Crops, Rice and Dairy. These activities are now managed as one integrated value chain and evaluated based on overall segment operating performance. Comparative information will be recast to conform to the current presentation. Sugar, Ethanol & Energy segment: Adjusted EBITDA amounted to $40.6 million in 1Q26, 36.0% higher year-over-year. (+) First-quarter crushing record of 2.2 million tons (49.1% increase versus 1Q25). Strong recovery in productivity leading to 79.5% higher TRS per hectare year-over-year. (+) Full ethanol maximization (96% mix) to capture greater margins compared to sugar. (-) Lower net sales on lower selling volumes and prices of sugar, partially offset by higher ethanol prices. (-) Despite greater crushing, our cost of production stood at 12.9 cts/lb (versus 11.1 cts/lb in 1Q25) driven by (i) the appreciation of the Brazilian Real; (ii) the anticipation of certain agricultural expenses that are typically concentrated later in the year; and (iii) lower cost dilution given lower TRS content per ton of cane crushed. Outlook (+) Crushing pace remains on track to meet our full-year crushing target. Assuming normal weather, we foresee low-double-digit growth in 2026's crushing volume versus 2025. (+/-) As of this date, we have 65% of our sugar production hedged at an average price of 15.7 cts/lb. Fertilizers segment: Adjusted EBITDA amounted to $52.5 million in 1Q26. On a pro forma basis, this represents a 4.3x increase versus 1Q25, assuming that the Profertil acquisition occurred on January 1, 2025. (+) Higher urea production (9.6% increase versus 1Q25) because of a higher number of operational days. (+) Sales up by 67.8% year-over-year on higher prices (urea average selling price of $517/ton versus $444/ton in 1Q25) and volumes sold (+69.5 thousand tons year-over-year). (+) Lower cost of production driven by (i) higher cost dilution due to the increase in production; coupled with (ii) lower gas costs as we conducted spot purchases to benefit from a more competitive price. Outlook (+) Since the start of the conflict in the Middle East on February 28, 2026, international urea prices have increased by ~55%. CFR Brazil is currently trading at ~$725/ton on average. (+) We capture the upside in prices progressively as sales are executed. Given that most of our cost base —primarily natural gas—remains fixed, incremental revenues flow through EBITDA, driving margin expansion. As a result, we expect stronger-than-anticipated Adjusted EBITDA in 2026, with performance exceeding prior years. Food & Agriculture segment: Adjusted EBITDA reached $1.4 million in 1Q26 compared to $16.6 million in 1Q25. (-) Lower commodity prices (between 4% and 46% depending on the product). (-) Higher costs in U.S. dollar terms, mostly related to carry-over stocks from the previous campaign. (+/-) Harvesting activities are in progress (55% completed). Higher volumes of milk processed at our industrial facilities. Outlook (+) We foresee grains productivity to be in line with historical average, whereas we expect an increase in processed milk volume, as we launch new products under our retail brands. Margins should improve throughout the year as we harvest the new crop and conduct its sale. Non-Gaap Financial Measures: For a full reconciliation of non-gaap financial measures please refer to page 10 of our 1Q26 Earnings Release found on Adecoagro's website (ir.adecoagro.com) Forward-Looking Statements: This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as "anticipate," "forecast", "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "would," or other similar expressions. The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii) weather and other natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing our business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which we operate, environmental laws and regulations; (iv) the implementation of our business strategy; (v) the correlation between petroleum, ethanol and sugar prices; (vi) our plans relating to acquisitions, joint ventures, strategic alliances or divestitures, and to consolidate our position in different businesses; (vii) the efficiencies, cost savings and competitive advantages resulting from acquisitions; (viii) the implementation of our financing strategy, capital expenditure plan and expected shareholder distributions; (ix) the maintenance of our relationships with customers; (x) the competitive nature of the industries in which we operate; (xi) the cost and availability of financing; (xii) future demand for the commodities we produce; (xiii) international prices for commodities; (xiv) the condition of our land holdings; (xv) the development of the logistics and infrastructure for transportation of our products in the countries where we operate; (xvi) the performance of the South American and world economies; and (xvii) the relative value of the Brazilian Reais, the Argentine Peso, and the Uruguayan Peso compared to other currencies. These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release might not occur, and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements. The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events. To read the full 1Q26 earnings release, please access ir.adecoagro.com. A conference call to discuss 1Q26 results will be held on May 12, 2026, with a live webcast through the internet: Conference Call May 12, 2026 9 a.m. US EST 10 a.m. Buenos Aires 10 a.m. São Paulo 3 p.m. Luxembourg To participate, please register at the link Investor Relations Department Emilio Gnecco CFO Victoria Cabello IRO Email: [email protected] About Adecoagro: Adecoagro is a leading sustainable production company in South America. Adecoagro owns 210.4 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces 1.3 million tons of fertilizers, 3.1 million tons of agricultural products and over 1 million MWh of renewable electricity. View original content:https://www.prnewswire.com/news-releases/adjusted-ebitda-reached-85-8-million-in-1q26-driven-by-first-quarter-crushing-record--full-ethanol-mix-the-fertilizers-segment-adds-earnings-momentum-and-future-upside-supported-by-higher-urea-prices-302768677.html

Image source: The Motley Fool. Tuesday, May 12, 2026 at 9 a.m. ET Chief Executive Officer — Mariano Bosch Chief Financial Officer — Emilio Federico Gnecco Chief Operating Officer, Sugar, Ethanol & Energy — Renato Junqueira-Santos Pereira Mariano Bosch: Good morning and thank you for joining Adecoagro's First Quarter 26 Results Conference. Today, we are presenting the first results from the new Adecoagro. A well diversified agro industrial platform composed of 3 segments. Sugar ethanol and energy, fertilizers, and food and agriculture. The $86 million of 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 spicked 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 a faster than expected deleveraging, 1 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. Emilio Federico Gnecco: 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 3 reportable segments. Number 1, the sugar ethanol and energy segment. Number 2, the fertilizer segment, which reflects ProFertil's results, and Number 3, the food and agriculture segment an integrated platform focused on agriculture and food production that was previously reported across 3 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 total, $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 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 6. 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, 1 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 offer 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 agriculture expenses that were typically concentrated later in the year, which more than offset the cost dilution from higher crush. Although we maximize ethanol production and execute its 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 2025, mainly due to adverse weather conditions that disrupted gas supply. By contrast, 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's 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 cost 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 and 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 finalize the sale of carryover inventories from the previous harvest season. Regarding the 25, 26 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 thousand tons of agriculture products. In our dairy operations, processing volumes increase year over year driven by higher raw milk production at our Fristall facilities reflecting improved cow productivity. We expect margins to improve over the coming quarters as a 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 2026, we paid the final installment related to the acquisition of a 90% equity stake in Proferti. 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, $300 million in equity proceeds. On the following page 13, we present our debt profile. Our net debt increased to $1.6 billion in 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 2025. On a pro form a basis, net leverage stood at 3.2x. 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 19, with the second installment payable in November in an equal amount. Before concluding, 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 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 set. Thank you very much for your time. Operator: We will now open the call to questions. Thank you. The floor is now open for If you have a question, please write it down in the Q and 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 Matheus Enfeldt with UBS. Analyst (Matheus Enfeldt): Good morning. Thank you, Mariano and Emilio for Victoria, and Renato. Thank you for your time. My first question on capital allocation midterm, how you think Profertil is you mentioned that 1 of the avenues for a future growth could be the expansion of the fertilizer capacity from Profertil. And now how do you think that would be the best path moving forward? And I am 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 of a partnership could make sense for that and how to do that. And then 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. So how is the how are the consumers of your fertilizers really taking this impact in higher urea prices and how the contracts work if you set contracts if you set prices at some advance in time, what is the timeline for that? When do you expect set prices for the remaining sales for the year? Those are my 2 questions. Thank you. Mariano Bosch: Hi, Matheus. Thank you very much for your question. I am going to start for your second question. And then I would like to reask about the first 1 because some part of it, we could not understand. So going to the fertilizer business and how prices are generated. You mentioned about the import parity and the import parity in our Argentina is because Argentina consumes 2.4 million tons of urea and only produces 1.3 million tons, that is 100% produced by Profertil. So there is always a need of there is always a need of importing urea. that is why there is that is why the clear that there is always gonna be an import parity pricing. The reduction on potential uses of urea are at the most a 10% reduction. So we are far away to becoming a net exporter. So we will always be a net importer at this level of production and the capacity is only that 1. So that is, absolutely clear. And then when that, urea is needed on when are the needs in Argentina, is for wheat and corn, mainly for those to crop them for rice and many other crops, but the main drivers are wheat and corn. And for wheat, the needs are July, June, Julia onwards. So the need of the usage of fertilizers are starting now or in the following 2 months. In the next 2 months is where they need for wheat are going to be, delivered. And then during, September, October, November is mainly for corn. So those are the 2 moments where the consumption of fertilizer is higher within Argentina. So that is how urea is going to be priced domestically. Then going to the first part of your question, There was some noises, so we could not hear you clearly. Can you repeat us? Yeah. Yeah. Sure. I am 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. But my question is, could you put find ways to potentially accelerate that given how high prices are in the near term and likely to stay higher for the next couple of years. And 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 is my question. Thank you. Okay. Clear. Thank you, Matheus. In any case, constructing a urea price, a urea plant needs 4 years. So and the total timing in general are 5 to 7 years. So in this case, it is difficult to go below 4 years. So, taking that into account, the this increase in fertilizer prices as of today, We are not expecting that to influence our decision on making a urea price. Having said this, of course, we are interested on expanding the plan 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 as the main leading area where the gas is increasing. So we do that We do see that happening in Argentina. There is transportation being built, and there are more transportation going through Bahia Blanca that is where we have this port. So we do see a great opportunity to expand this plant. So we do believe that makes sense, and 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. So there is still a lot of space to be a producer of urea. But this is a project that we are studying in details and we are working on it. But, we still do not see exactly when and how we will start to make it happen. And, of course, there are several ways of financing, including partners, etcetera, etcetera. Operator: Our next question comes from Isabella Simonato with Bank of America. Analyst (Isabella Simonato): 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 you urea prices in Brazil. Right? So my question is, can we assume that trend continues into Q2? I mean, when we look at April and May, can we see a high correlation of the prices you have been selling to the prices in Brazil? And 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? And the second question is on the sugar and ethanol side. You mentioned, right, that cost move up because of FX, but also on some agricultural cost. But I assume that since you are crushing more right, for this year, you have more clean availability better productivity. I mean, can we think about some normalization or some decline in unitary cost going forward? Mariano Bosch: Thank you. Hi, Isabella. Thank you for your question. I am gonna address the first 1, and then I will ask Renato to take the second 1. On the first 1, the answer is yes. The urea price is very correlated to the CFR Brazil. So the main market of urea is CFR Brazil. So that is how we all price urea in the region. So you will see a correlation there. And it is easy to look at it. And the urea price is always a spot price, and the this CFR reflects the spot price of urea. And then regarding the pace, as I mentioned before, June, Julia, and August is where the needs of fertilizers start in Argentina. We do not see that the need being reduced The most that can be reduced is 10%, but we do not even see that reduction happening. So we do continue to see producers, and we ask producers are using the urea because it is where you see the most or the higher reaction on your productivity at the farms. So the higher impact in productivity within fertilizers in general is urea, So that is why, we continue applying it. And so we do not that as a relevant, reduction. Then going to your second question regarding the sugar and ethanol cost expectation for this year, Renato can be more clear here. Renato Junqueira-Santos Pereira: Hi, Isabella. We expect a cost reduction in reais The reduction is going to be between BRL 10 and BRL 15 per ton. I think the main factors that we 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 lower Consecana price. So those facts are more than enough to offset some pressuring 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 good conditions to do it, especially weed control and pest control But this is just the cost that we have in the first quarter we are not going to have in the future. that is the reason we think it is difficult to measure cost of production by quarter. It makes more sense to see it annually. Analyst (Isabella Simonato): Thank you. Super clear. Thank you very much. Operator: Once again, if you have a question, please write it down in Our next question comes from Gabriel Baja with Citi. Analyst (Gabriel Baja): Hi, everyone. Thanks for taking my questions. I have 2 here. 1 I am trying to change gears here and understand a little bit better the scenario for the crop season this year. I remember in the last conference call, have talked a little bit about the mix for this crop season. As we have discussed, it seems that the strategy to focus in ethanol, it is up and running, but we are seeing ethanol price driving to lower levels the beginning of the crop given this higher supply. So my question here is trying to understand the company's strategy for the mix from now on, given these lower ethanol price and this, let's say, weak sugar price that we are seeing in the market today. So I am trying to understand here, the structure of the company and then the commercialization strategy here for this crop season. The second point is on seeing this quite strong market for fertilizers. And in the end of the day, we still see the company given the recent acquisition with net debt EBITDA close to 3.2x above, let's say, the comfort zone that I think that is the let's say, the sweet spot here for the COP in terms of capital structure. How should we think about the company, the deleverage path to reach the 2.0x, like, that EBITDA in the in the following quarters or even months. Given this better scenario for fertilizers? Do you think that it is feasible to think that you are going to reach this number in the beginning of the year. It is the focus of the company right now. How should we think about the capital structure of the company at this point? Given the criteria for commodities? So those are my 2 questions. Thank you. Mariano Bosch: Okay. Thank you, Gabriel, for your question. Renato is going to answer your first question. Regarding the mix the mix and the crop season. Renato Junqueira-Santos Pereira: Hi, Gabriel. The year started with a tight ethanol inventory and high prices. So that is why we took advantage of this scenario to sell almost our whole production of first quarter and all the carryover until the 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 So the parity rate of the pump today is close to 60%. We think that this 60% at the pump it is enough to absorb the ethanol surplus from 1 year to the other for the demand of ethanol is going to increase and the hydro ethanol can reach about 30% of market share In our case, specifically, the 60% parity rate at the pump is still an ethanol equivalent close to $0.17 per pound So that is why we are still maximizing the ethanol production and we think we are doing right we are going to keep maximizing maybe for the whole year At this point, we have stopped selling our ethanol and are in our tanks to sell the ethanol in the last part of the year. Mariano Bosch: Thank you, Renato. And then, Gabriel, regarding your second question on the leverage, I will ask, Emilio to answer Hello, Gabriel. Operator: You for your question. Emilio Federico Gnecco: 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 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 of bringing down the net debt levels to 2% in the following 1 or 2 years we are probably going to see by the end of this year. So, hopefully, by 2026, we will be in the levels of 2x EBITDA in on an annualized basis. Analyst (Gabriel Baja): Thank you. Very clear. Thank you. Operator: Our next question comes from Bruno Tomazetto with Itau BBA. Analyst (Bruno Tomazetto): Hey. Good morning. Thank you for taking our questions. The first 1 is regarding your view on El Nino. Right? Recent studies suggest 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 Agriculture segments. Right? You mentioned in the earnings release an average yield expected for crops in 2026. So just wondering what could change in a scenario for stronger El Niño materializing the coming months. And then the second 1 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 the lower the lower relevance of results for the consolidated company, also assuming that the company is already consolidating several operations into a business unit. Just if there could be any opportunity of M&A or divestments more specifically that could make sense. Especially now that fertilizers unit has gained a lot of relevance for the Adecoagro. that is it. Thank you. Operator: Thank you, Bruno, for your question. Mariano Bosch: Regarding El Nino, there are several aspects that can affect if we have a an El Nino 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. And if we do have a Niño year, then the Northern Hemisphere can have some less production, and then, that can improve the prices of sugar, basically. And that is probably where the higher impact is. Then 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 Nino or La Nina because it is in a natural area. And then in general, that El Nino would mean more rains, and more rains would mean more uses of fertilizer so that can be positive for the fertilizer business as a global comment. So that they take quickly on El Nino or La Nina, and this apparently looks like an El Nino year that they, of course, would potentially be positive. Then regarding your question on food and agriculture, as we mentioned several times during last year, last year was probably the more difficult year for food and agriculture, food and agriculture in general. We are having a huge reduction in prices of most of the commodities that we were producing and we were bringing cost of the previous campaign where the cost was higher. So today, we are harvesting. We are in the middle of the harvest of this new campaign where the prices have already gone down, So we do expect that, going forward in the following quarters, the food and agriculture will start more relevant results than what you have seen in this quarter, of course. So, having said this, we do expect that to continue to improve, and we do like the different, businesses that we have. And in all of them, we believe we are the low cost producers. So, 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 product different products that we are doing in the whole food and agriculture business. Analyst (Bruno Tomazetto): Super clear. Thank you. Operator: Next question from Thiago Duarte. Analyst (Thiago Duarte): Hi. Hello, everybody. Thanks for the opportunity. it is just 1 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? So 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 were you were thinking about it given that she, you know, the deleveraging might happen sooner than expected. Thank you. Mariano Bosch: Hi, Thiago. Thank you for your question. Of course, the first focus is on, deleveraging. And as you have heard us say before, we have been always looking to be disciplined We also do have several projects in each 1 of our existing businesses that have potential for growth. We were talking about the 1 particular 1 that is regarding this expansion of the fertilizer business. There are many, interesting projects within our sugar and ethanol business as you have seen with the biogas and several things that are growing and doing pretty well. So 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 to continue with our distribution policy or with our dividend policy. As, we have already mentioned before. Thank you, Mariano. Operator: 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. Mariano Bosch: Thank you all for participating in our call. We are very happy with how the company is going with this new Adecoagro, so we hope to see you in our new, coming event. Operator: Thank you. This concludes today's presentation. You may disconnect at this time and have a nice day. Before you buy stock in Adecoagro, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adecoagro wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Adecoagro (AGRO) Q1 2026 Earnings Transcript was originally published by The Motley Fool