Consolidated adjusted EBITDA during the quarter reached $115 million, while year-to-date it amounted to $206 million. In Brazil, we achieved an all-time quarterly crushing record of 4.9 million tons and even produced 40% more ethanol than the previous year as we switched our production maximization, giving premium commanded over sugar. Therefore, our decision is to reduce the long grain rice and to increase the mix of varieties. In dairy, cow productivity and processing volumes have achieved a new record.

Despite this, adjusted EBITDA improved versus the prior year to $115 million on greater results from our sugar, ethanol, and energy business. On a year-to-date basis, sales and adjusted EBITDA stood at $1 billion and $206 million, respectively. The year-over-year gap reported in the previous release has decreased by the crushing record achieved during the third quarter, which we will get into more detail shortly. In the case of the farming business, total production saw a 13% year-over-year increase explained by higher planted area, as well as record productivity in our rice operations.

During the period, we achieved a new quarterly crushing record of 4.9 million tons and a 20% year-over-year increase. Despite the increase in ethanol production, lower sales during the quarter were explained by a decline in volume sold. In the case of energy, the increase in sales was driven by higher selling prices year-over-year as we complied with our long-term contracts as well as profit from the peaks in spot prices. Adjusted EBITDA amounted to $120 million during the third quarter, making a 20% year-over-year increase.

What went well
  • Sugar, ethanol and energy staged a strong recovery: an all-time quarterly crushing record of 4.9 million tons (+20% year over year) as the company completed harvesting frost-impacted cane, and segment adjusted EBITDA rose 20% year over year to US$120 million on biological-asset and commodity-hedge mark-to-market gains.
  • Consolidated adjusted EBITDA improved year over year to US$115 million for the quarter (US$206 million year-to-date), reversing the prior quarter's trend.
  • The company signed an agreement (September 8) to acquire Nutrien's 50% interest in Profertil - the largest granular-urea producer in South America - for approximately US$600 million (US$96 million advance paid), a transformational, diversifying, cash-generative asset with fixed-price gas access in Argentina.
  • Mill flexibility was on full display: the ethanol mix reached 58% (vs. 45% a year earlier) as the company switched to maximize the higher-margin product, and dairy set a productivity record of 39.1 liters of milk per cow per day.
  • The company returned capital: a 2025 shareholder distribution of US$45 million, comprising a US$10 million buyback (about 1.1% of equity) and US$35 million of cash dividends (~US$0.35/share, ~4% yield), while liquidity remained strong at a 3.2x ratio.
What went wrong
  • Gross sales fell 29% year over year to US$323 million on lower volumes and prices across operations.
  • Net debt jumped 35% year over year to US$872 million and net leverage rose to 2.8x (from 1.5x) on weaker results plus the US$96 million Profertil advance payment.
  • The farming business earned only US$1 million adjusted EBITDA in the quarter (US$19 million YTD), still pressured by low peanut/rice prices and higher U.S.-dollar costs.
  • Year-to-date SE&E adjusted EBITDA of US$218 million was still 16% below the prior year, and average yield and TRS content declined on the frost impact.
  • The 2025/26 crop plan was cut ~22% as leasing costs and weak returns forced a retreat from lower-productivity and northern-region hectares.

Guidance Changes

MetricPeriodCurrent guidance
Profertil acquisitionclosingClosing targeted by mid-December 2025, subject to YPF's right of first refusal (expiring early December)
Sugarcane crushingFY2026Potential 5-6% increase versus 2025 on better cane conditions, assuming normal weather
SE&E cash costsFY2026Expected 15-20% reduction on higher volume/yield dilution, lower Consecana raw-material prices and efficiency gains
Growth capexFY2026Significant reduction expected across all four business segments given compressed EBITDA and the Profertil purchase
Net leveragepost-closeIntend to reduce leverage via cost savings, capital-allocation revision and exploring capitalization structures with the controlling shareholder

Performance Breakdown

MetricYoYNote
Consolidated adjusted EBITDA US$115M quarter / US$206M YTD Improved SE&E results outweighed weak farming; sales down on lower prices/volumes.
Gross sales US$323M quarter (-29%) / ~US$1.0B YTD Lower global prices and volumes across products.
SE&E adjusted EBITDA US$120M quarter (+20%) / US$218M YTD (-16%) Record crushing plus mark-to-market gains on yield and hedges.
Farming adjusted EBITDA US$1M quarter / US$19M YTD Low peanut/rice prices and higher USD costs; dairy record productivity.
Net debt / leverage US$872M (+35%); 2.8x (vs 1.5x) Weaker results plus the US$96M Profertil advance payment.

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
Profertil acquisitionNot ownedSigned Sept 8 for ~US$600M (Nutrien's 50%); diversifies into fertilizers, targeting mid-December close pending YPF ROFR
SE&E recovery & flexibilityWeather-hit H1Record quarterly crushing (+20%), 58% ethanol mix, segment EBITDA +20% YoY
Deleveraging & capital allocation2.3x at Q22.8x after advance payment; capex cuts, cost savings and capitalization talks planned to bring leverage down

Q&A Summary

What is the 2026 crushing and cost outlook, and the level of capex given weak pricing?
Mariano Bosch/Renato Pereira: growth capex will be cut materially across segments as EBITDA compresses and Profertil is funded; crushing can rise ~5-6% in 2026 on better cane, with costs down ~15-20% from volume/yield dilution, lower Consecana prices and efficiency gains.
What actions beyond capex cuts will reduce leverage, and why the drastic crop-area reduction?
Mariano Bosch/Emilio Gnecco: the crop area was cut chiefly by declining high-cost land leases (long-grain rice down ~25-30%, offset by premium varieties) after a ~50% collapse in long-grain rice prices; leverage will fall through lower capex, cost savings, a distribution-policy review and capitalization structures explored with the controlling shareholder - debt is well-structured (4.5-year average life).
What are the Profertil financing terms and expected 2026 dividend contribution?
Mariano Bosch: the closing (targeted mid-December) is 100% financed with long-term facilities at good rates; Profertil has paid over US$1 billion of dividends in the last five years and will be accounted for under the equity method - specifics to follow at close.

More on Adecoagro S.A.

Reported 2025-11-12 · figures from the Adecoagro S.A. Q3 2025 earnings call.

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