The $86 million adjusted EBITDA generated already reflects the change in scale and earnings potential, with further upside ahead. In Brazil, we achieved a new first quarter crushing record, reflecting the returns on our planting expansion investments. Overall, higher productivity in Brazil, higher urea prices, and better margins in Argentina and Uruguay should translate into a stronger earnings performance and, most importantly, higher cash generation in 2026. This, in turn, will enable us a faster than expected deleveraging, one of our main priorities following the acquisition of the Fertilizer business.
Number three, the Food & Agriculture segment, an integrated platform focused on agriculture and food production that was previously reported across three separate verticals: crops, rice, and dairy. Gross sales totaled $394 million in the first quarter, representing a 22% year-over-year increase. Adjusted EBITDA reached $86 million, more than doubling the level reported in the prior year. Moving to the financial and operational performance of our operations, let's start with the Sugar, Ethanol, & Energy segment on slide six.
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. 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.
| Metric | Period | Current guidance |
|---|---|---|
| Net leverage | end-2026 | Now expected to reach ~2x adjusted EBITDA by the end of 2026, ahead of schedule |
| Fertilizers adjusted EBITDA | FY2026 | Now expected to be stronger than previously anticipated, potentially exceeding prior-year levels on a favorable price outlook |
| SE&E crushing | FY2026 | Reaffirmed low-double-digit crushing growth and a full year of ethanol maximization |
| SE&E cash costs | FY2026 | Expected down ~10-15% in reais on volume dilution, efficiencies and lower Consecana prices (Q1 cost inflation was a one-off timing effect) |
| Dividend | 2026 | US$35M cash dividend approved; first US$17.5M installment paid May 19, second in November |
| Metric | YoY | Note |
|---|---|---|
| Consolidated adjusted EBITDA | US$86M (more than 2x prior year) | First full quarter of Fertilizers plus higher ethanol/energy prices and record crushing. |
| Gross sales | US$394M (+22%) | Strong Fertilizers performance and higher ethanol/energy prices, partly offset by lower sugar, peanut and rice prices. |
| Fertilizers adjusted EBITDA | US$53M | 68% higher sales (16% higher urea prices), higher production days and lower gas-sourcing costs. |
| SE&E adjusted EBITDA | US$41M | Record 2.2M-ton crushing (+49%), 96% ethanol mix; partly offset by FX and pulled-forward agricultural costs. |
| Net debt / pro forma leverage | US$1.6B; 3.2x | Seasonal working capital plus the final Profertil installment; ex-seasonality net debt fell vs Q4 2025. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fertilizers ramp & urea upside | 13-day contribution in Q4 2025 | First full quarter at full capacity; US$53M EBITDA; capturing Middle East-driven urea price spike with fixed gas costs | — |
| SE&E record crushing | Weather-hit 2025 | First-quarter record 2.2M tons (+49%), 96% ethanol mix under continuous-harvest model | — |
| Accelerated deleveraging | 3.3x pro forma at YE2025 | 3.2x; targeting ~2x by end-2026 on stronger fertilizer cash generation | — |