Key Takeaways:
- Adecoagro reported Adjusted EBITDA of $276.7 million for full year 2025, down 37.7% year-over-year, with pro forma Adjusted EBITDA of $467.2 million including a full year of Profertil operations.
- In December 2025, Adecoagro completed the acquisition of a 90% stake in Profertil S.A., Argentina's sole granular urea producer, for approximately $1.1 billion.
- The Sugar, Ethanol & Energy segment remained Adecoagro's largest contributor with Adjusted EBITDA of $291.5 million, despite a 19.9% year-over-year decline driven by lower sugar prices and reduced crushing volumes.
- Full year results were pressured by lower commodity prices, mixed productivity, and higher costs in U.S. dollar terms across the Farming segment.
- Adecoagro's Board of Directors approved $35 million in cash dividends for 2026, payable in two equal instalments, subject to shareholder approval at the April 15 Annual Meeting.
Adecoagro Completes Transformational Profertil Acquisition in FY2025
Adecoagro S.A. (NYSE: AGRO), a sustainable production company operating across South America, has reported its financial results for the fiscal year ended December 31, 2025. The year was shaped primarily by the completion of its acquisition of Profertil S.A. in mid-December 2025, which significantly expanded the company's scale and debt position.
Adecoagro reported gross sales of $1.45 billion for the full year, a 2.1% decline compared to 2024. On a pro forma basis — treating the Profertil acquisition as if it had occurred on January 1, 2024 — gross sales were $2.02 billion, down 5.9% year-over-year.
Adecoagro Full Year 2025 Financial Summary
Adjusted EBITDA and Net Income
Adjusted EBITDA for 2025 was $276.7 million, a 37.7% decline from $444.3 million in 2024. On a pro forma basis, Adjusted EBITDA reached $467.2 million, down 35.5% from $723.9 million in 2024, primarily reflecting weaker operating performance and 91 days without operations at the Profertil fertilizer plant.
Adecoagro reported an Adjusted Net Loss of $18.0 million for 2025, compared to Adjusted Net Income of $202.6 million in the prior year. On a pro forma basis, Adjusted Net Income was $68.7 million for 2025, compared to $460.1 million in 2024.
Leverage and Net Debt
Net debt as of December 31, 2025 stood at $1.12 billion, a 114.5% increase year-over-year, primarily driven by financing related to the Profertil acquisition. The net debt to Adjusted EBITDA ratio rose to 4.0x. Including the approximately $400 million balance from the Profertil transaction to be paid in instalments during the first half of 2026, Adecoagro's net debt position increases to approximately $1.5 billion with a net leverage ratio of 3.3x.
The company says it intends to reduce its leverage ratio through higher expected Adjusted EBITDA generation, primarily from the Fertilizers and Farming segments, alongside a revision of its capital allocation strategy.
Adecoagro's Profertil Acquisition: Structure and Rationale
Transaction Details
Adecoagro acquired a 90% equity stake in Profertil S.A. in December 2025, with the remaining 10% held by Asociación de Cooperativas Argentinas (ACA). The transaction was financed through a combination of existing cash, new long-term debt, equity issuance, and seller financing.
To support the deal, Adecoagro returned to public equity markets for the first time since its 2011 IPO, issuing 42 million shares at $7.25 per share and raising approximately $300 million. Controlling shareholder Tether anchored the offering with a $220 million purchase, while Adecoagro's management and related parties acquired an additional $26 million in shares.
About Profertil
Profertil is Argentina's sole producer of granular urea with an installed capacity of 1.3 million tons, supplying approximately 60% of domestic demand. The company benefits from access to competitively priced natural gas, which represents the primary input in urea production.
The fertilizer plant underwent 91 days without operations in 2025, including a 60-day scheduled maintenance period that concluded in mid-December when Adecoagro assumed operational control. The company says it expects a recovery in Fertilizers segment results in 2026, driven by a full year of operations.
Adecoagro Segment Performance
Sugar, Ethanol & Energy
Adecoagro's Sugar, Ethanol & Energy segment reported Adjusted EBITDA of $291.5 million for 2025, down 19.9% from $364.2 million in 2024. Annual sugarcane crushing totalled 12.1 million tons, a 4.8% decline year-over-year, impacted by above-average rainfall in the fourth quarter and a slower pace in the first half of the year.
The company shifted its production mix toward ethanol during the second half of 2025, as ethanol prices traded at a premium to sugar in the Mato Grosso do Sul region. The full-year production mix stood at 42% sugar and 58% ethanol, compared to 52%/48% in 2024. Despite the production mix shift, annual sugar volumes sold were 22.5% lower year-over-year, while ethanol sales volumes rose 16.7%.
On the outlook for 2026, Adecoagro says cane productivity has recovered and that it is currently crushing cane during Brazil's interharvest period. Assuming normal weather conditions, the company projects low-double-digit growth in 2026 crushing volumes.
Fertilizers
Since assuming operational control of Profertil on December 18, 2025, the Fertilizers segment contributed $6.1 million in Adjusted EBITDA. On a pro forma annual basis, 2025 Adjusted EBITDA for the segment was $196.5 million, compared to $279.6 million in 2024, primarily reflecting the 91-day production outage.
Looking ahead, Adecoagro says it expects a recovery in Fertilizers results in 2026 on the basis of normalised operations and a full year of activity. The company also notes that urea prices have increased sharply due to ongoing geopolitical tensions in the Middle East, and that approximately 85% of estimated sale volumes remain open to market prices. Gas supply is secured under medium-term contracts.
Farming
Adecoagro's Farming segment reported Adjusted EBITDA of $17.8 million for 2025, an 82.7% year-over-year decline. Excluding the $15.0 million gain from the sale of La Pecuaria farm in April 2024, Adjusted EBITDA was down $70.1 million versus the prior year.
The decline was driven by lower commodity prices across the portfolio — ranging from 15% to 45% depending on the product — below-average crop production, and higher costs in U.S. dollar terms. The company reported record rice yields during the year, though these were more than offset by a sharp drop in rice prices compared to the elevated levels seen in 2024. The Dairy sub-segment achieved a new record in milk processing volumes, though price pressures and higher costs weighed on profitability.
To improve margins in the Farming segment, Adecoagro says it has implemented cost reduction measures including a 22% reduction in total planted area by not renewing leases on farms that did not meet return thresholds.
Adecoagro Capital Expenditure and Shareholder Distribution
Capital Expenditure
Total capital expenditure for 2025 was $938.0 million, up significantly from $274.2 million in 2024, reflecting the $676.0 million related to the Profertil acquisition. Excluding the acquisition, expansion capex was $113.1 million, directed primarily toward biomethane production capacity in the Sugar, Ethanol & Energy business and agricultural equipment and land development for rice production. Maintenance capex was $149.0 million, down 12.4% year-over-year.
Shareholder Distribution
Adecoagro distributed $45.2 million to shareholders during 2025, comprising $35.0 million in cash dividends and $10.2 million in share buybacks. For 2026, the Board of Directors has approved cash dividends of $35.0 million, to be paid in two equal instalments of $17.5 million each in or around May and November 2026, subject to shareholder approval at the April 15 Annual Meeting.
Read the complete financial results.
