This new operation marked a transformational milestone for us as it broadened our production capabilities, more than doubled our cash generation, and reduced earnings volatility by incorporating a stable, consistent, and already cash-generating business. We are adding a unique asset in Argentina to our well-diversified agro-industrial portfolio with the capacity to expand its earnings and cash potential by leveraging on Argentina's largest natural gas reserves. We also have a huge market opportunity of reaching a wider demand in South America that today must rely on imports from far away origins, such as the Middle East. The acquisition of Profertil would not have been possible without the continued support of our shareholders.
We raised $300 million in new equity anchored by Tether, our controlling shareholder, further reinforcing their commitment to the company's long-term strategy. In Argentina and Uruguay, better productivity will turn into margin expansion and greater results. On top of this, we expect a normalized and full year of operations from the fertilizer business, driving further cash generation. I am convinced that if we remain focused on the lowest cost producer in each of our sustainable production models, we can further expand our earnings potential.
Additionally, in an effort to update and simplify the way we view our business units from the beginning of January 2026, the company will change the business segment reporting structure as follows. Lastly, segment number three, food and agriculture business, which reflects an integrated business focused on agriculture and food production that in the past were presented through three separate verticals, crops, rice, and dairy. Please turn to page 4, where you can see how the acquisition of Profertil supports our scale. In addition, the acquisition further diversifies our portfolio, as illustrated in the pie chart at the top right, thereby strengthening the company's ability to perform across cycles.
| Metric | Period | Current guidance |
|---|---|---|
| Net leverage | next 1-2 years | Intend to reduce toward ~2x adjusted EBITDA via higher fertilizer EBITDA and capital-allocation revision |
| Fertilizers adjusted EBITDA | FY2026 | Full recovery expected on normalized operations and a positive urea price outlook |
| SE&E crushing | FY2026 | Low double-digit growth expected on better productivity and a full year of ethanol maximization |
| SE&E cash costs | FY2026 | Expected down ~10-15% on volume dilution and efficiencies |
| Dividend | 2026 | US$35M cash dividend approved (paid equally in May and November), subject to AGM approval |
| Metric | YoY | Note |
|---|---|---|
| Consolidated sales | -2% YoY (pro forma -6%) | Low commodity prices, mixed productivity, higher USD costs. |
| Consolidated adjusted EBITDA | -38% YoY (pro forma -35%) | Down-cycle pricing; fertilizer downtime on a pro forma basis. |
| SE&E adjusted EBITDA | US$292M (below 2024) | Lower milling and sugar prices, partly offset by flat cash cost of US$0.128/lb and 72% Q4 ethanol mix. |
| Pro forma net debt / leverage | US$1.5B; 3.3x (vs 1.2x) | Profertil acquisition financing plus lower 2025 results. |
| Profertil consideration | ~US$1.1B for 90% | Financed with ~US$400M cash, 2x US$200M 7-yr debt and US$300M equity; US$676M paid by Dec 31, ~US$50M balance outstanding. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Scale transformation via Profertil | Four verticals, ~US$1.5B revenue base | Largest South American urea producer; pro forma >US$2B sales and up to ~US$700M adjusted EBITDA potential | — |
| New three-segment structure | SE&E + Farming (Crops/Rice/Dairy/Land) | Sugar, Ethanol & Energy; Fertilizers; Food & Agriculture (effective Jan 2026) | — |
| Deleveraging | 1.2x in 2024 | 3.3x pro forma; targeting ~2x via fertilizer cash generation and capital-allocation discipline | — |