Key Takeaways
- Adecoagro Fertilizers segment delivered Adjusted EBITDA of $52.5 million in Q1 2026, a 4.3x increase versus Q1 2025 on a pro forma basis, driven by a 9.6% rise in urea production and a 16.4% increase in average urea selling price to $517/ton.
- The Sugar, Ethanol and Energy segment posted a first-quarter crushing record of 2.2 million tons (+49.1% YoY), with Adjusted EBITDA of $40.6 million (+36.0% YoY), supported by near-full ethanol maximisation at a 96% mix.
- The Food and Agriculture segment reported Adjusted EBITDA of $1.4 million, down from $16.6 million in Q1 2025, reflecting lower commodity prices across crops, rice, and dairy and higher carry-over input costs.
- International urea prices have risen approximately 55% since the onset of Middle East conflict on February 28, 2026, with CFR Brazil currently trading at approximately $725/ton, a direct tailwind for Adecoagro's Profertil operations.
- Net Debt/LTM Adjusted EBITDA stood at 3.2x on a pro forma basis following the full payment of the Profertil acquisition price; the company expects leverage to decline as Fertilizer EBITDA scales through 2026.
Adecoagro S.A. (NYSE: AGRO) reported first-quarter 2026 results marked by a record-setting crushing campaign in Brazil and a sharp uplift in its Fertilizers division following the acquisition of Profertil S.A. The company restructured its reporting into three segments effective January 1, 2026: Sugar, Ethanol and Energy; Fertilizers; and Food and Agriculture, with the latter consolidating the previously separate Crops, Rice, and Dairy verticals into a single integrated value chain.
Adecoagro Fertilizers Segment: Profertil Drives Outsized EBITDA Growth
The Fertilizers segment generated Adjusted EBITDA of $52.5 million in Q1 2026. On a pro forma basis, assuming the Profertil acquisition occurred on January 1, 2025, this represents a 4.3x increase versus the prior-year period. Urea production rose 9.6% year-over-year due to a higher number of operational days, while sales volumes increased by 69.5 thousand tons. The average urea selling price reached $517/ton, up from $444/ton in Q1 2025. Lower gas costs from opportunistic spot purchases further supported margin expansion.
The outlook is materially positive. International urea prices have risen approximately 55% since the start of the Middle East conflict on February 28, 2026, with CFR Brazil currently at approximately $725/ton. Given that most of Adecoagro's cost base, primarily natural gas, remains largely fixed, incremental revenue flows directly through to EBITDA. The company expects stronger-than-anticipated full-year Adjusted EBITDA exceeding prior years.
Sugar, Ethanol and Energy: First-Quarter Crushing Record For Adecoagro
The Sugar, Ethanol and Energy segment reported Adjusted EBITDA of $40.6 million, 36.0% higher year-over-year, supported by a Q1 crushing record of 2.2 million tons, a 49.1% increase versus Q1 2025. TRS per hectare rose 79.5% year-over-year, reflecting a strong productivity recovery. Adecoagro maximised its ethanol mix at 96%, capturing higher margins relative to sugar. Lower sugar selling volumes and prices partially offset these gains, as did a higher cost of production at 12.9 cents/lb versus 11.1 cents/lb in Q1 2025, driven by Brazilian Real appreciation, earlier agricultural expense recognition, and lower cost dilution from reduced TRS content per ton of cane crushed. The company expects low-double-digit growth in full-year 2026 crushing volume, assuming normal weather. As of reporting, 65% of sugar production has been hedged at an average price of 15.7 cents/lb.
Food and Agriculture: Lower Commodity Prices Weigh on Adecoagro's Results
The Food and Agriculture segment, which now consolidates Crops, Rice, and Dairy into a single integrated value chain, reported Adjusted EBITDA of $1.4 million in Q1 2026 compared to $16.6 million in Q1 2025. Commodity prices declined between 4% and 46% depending on the product, and higher U.S. dollar costs related to carry-over stocks from the prior campaign further compressed margins. Harvesting activities were 55% complete at reporting, with higher volumes of milk processed at industrial facilities. Adecoagro expects margins to improve through the remainder of 2026 as the new crop is harvested and sold, alongside a planned increase in processed milk volumes under its retail brands.
Balance Sheet: Leverage at 3.2x Post-Profertil
On a pro forma basis, Net Debt/LTM Adjusted EBITDA stood at 3.2x at the end of Q1 2026, reflecting the full payment of the Profertil purchase price and working capital seasonality. Adecoagro expects the leverage ratio to decline progressively through the year, driven by higher anticipated Adjusted EBITDA generation primarily from the Fertilizers segment. Full reconciliation of non-GAAP financial measures is available here.
