Adecoagro S.A.:Adjusted EBITDA reached $115.1 million in 3Q25. All-time crushing record and switch to ethanol maximization. Challenging global price scenario continues.

Rhea-AI Summary

Adecoagro (NYSE: AGRO) reported 3Q25 Adjusted EBITDA of $115.1 million and said the Sugar, Ethanol & Energy unit led results with $120.5 million in 3Q25 (+20.3% YoY). The company hit an all-time crushing record of 4.9 million tons in 3Q25 and shifted to an ethanol-maximization mix (58% in 3Q25).

9M25 results declined due to lower commodity prices and higher costs. Net Debt/LTM Adj. EBITDA was 2.8x. Adecoagro agreed to buy Nutrien's ~50% stake in Profertil for ~$600 million (company paid $96 million upfront). Farmland appraised at $714.8 million and total 2025 shareholder distributions reached $45.2 million.

Positive

• 3Q25 Adjusted EBITDA of $115.1 million
• Sugar business Adj. EBITDA $120.5 million (+20.3% YoY)
• Record crushing 4.9 million tons in 3Q25 (+20.4% vs 3Q24)
• Farmland value $714.8 million (+4.7% YoY)
• Shareholder distributions totaled $45.2 million in 2025

Negative

• 9M25 Adjusted EBITDA decline driven by lower prices and higher costs
• Net Debt/LTM Adj. EBITDA of 2.8x on lower results and Profertil down payment
• Expansion capex increased due to $96 million advance payment for Profertil
• Farming Adj. EBITDA down materially (≈$65.0 million YTD ex-sale)

Insights

Senior Financial Analyst

Mixed quarter: strong operational sugar/ethanol performance offset by weaker prices, higher costs and a large acquisition payment.

Adjusted EBITDA momentum in 3Q25 was driven by the Sugar, Ethanol & Energy unit, which reported 120.5 million of Adjusted EBITDA in the quarter and an all‑time crushing record of 4.9 million tons in the period. Consolidated headline Adjusted EBITDA and year‑to‑date figures declined, and Net Debt/LTM Adj. EBITDA rose to 2.8x, partly due to the 96.0 million contribution to the Profertil down payment.

The combination of higher operational throughput and a tactical switch to ethanol (reported mix: 58% in 3Q25) supported margins in the quarter, but lower commodity prices and elevated costs pressured year‑to‑date results. Key balance sheet impacts to monitor are the ~600 million purchase price for Profertil, the 120 million initial down payment (company share 96 million), and the recent distributions totaling 45.2 million (dividends and buybacks). Watch leverage metrics and free cash flow over the next 12 months as closing and integration costs materialize.

Agribusiness Strategy Expert

Operational strength in sugar milling and ethanol offsets lower crop and dairy pricing; Profertil acquisition significantly alters portfolio risk/reward.

The company recorded record crushing and higher biological‑asset valuations on better expected productivity, supporting the ethanol maximization strategy. Farming operations showed weaker profitability with lower crop, rice and dairy prices and negative mark‑to‑market effects for the 2024/25 harvest season, reducing Farming Adjusted EBITDA to 1.5 million in 3Q25.

Strategically, acquiring Nutrien’s ~50% stake in Profertil for ~600 million (company down payment 96 million) diversifies into a low‑cost urea/ammonia platform with reported average EBITDA of 390 million per year (2020–2024). Monitor closing conditions (including YPF’s 90‑day ROFR) and integration milestones over the next 12 months; near term impact will be on leverage and capital allocation rather than immediate margin improvement.

LUXEMBOURG, Nov. 11, 2025 /PRNewswire/ -- Adecoagro S.A. (NYSE: AGRO, Bloomberg: AGRO US, Reuters: AGRO.K), a leading sustainable production company in South America, announced today its results for the third quarter ended September 30, 2025. The financial information contained in this press release is based on consolidated interim financial statements presented in US dollars and prepared in accordance with International Financial Reporting Standards (IFRS) except for Non - IFRS measures. Please refer to page 22 for a definition and reconciliation to IFRS of the Non - IFRS measures used in this earnings release.

Main highlights for the period:

• Higher Adjusted EBITDA in 3Q25 was led by the Sugar, Ethanol & Energy business. In 9M25, the decline was explained by lower prices, higher costs and a mixed performance in yields.
• Higher expansion capex was driven by the $96.0 million advance payment to purchase Nutrien's stake in Profertil. Excluding this, expansion capex increased by $5.7 million in 3Q25 and $13.6 million in 9M25.
• Net Debt/LTM Adj. EBITDA stood at 2.8x on lower consolidated results and the aforementioned payment for Profertil. We are currently working on an Action Plan to reduce our cost structure while reviewing our capital allocation strategy.

Sugar, Ethanol & Energy business:

• Adjusted EBITDA amounted to $120.5 million in 3Q25, 20.3% higher year-over-year, whereas year-to-date it reached $218.4 million, 15.6% lower compared to 9M24.
  (+) Switched to ethanol max scenario (58% in 3Q25 / 55% in 9M25) on greater margins than sugar.
  (+) Year-over-year gains in biological assets on greater expected productivity and lower costs.
  (+/-) All-time crushing record in 3Q25 (4.9 million tons; 20.4% increase versus 3Q24). Catching up our harvesting pace with 9.8 million tons crushed year-to-date.
  (+/-) In-line production cost in 3Q25 thanks to higher dilution on record crushing. Year-to-date, cost of production stood at 8.3 cts/lb (versus 7.8 cts/lb in 9M24) on lower TRS equivalent produced, and therefore lower cost dilution.
  (-) Lower net sales in both 3Q25 and 9M25 due to lower selling volumes and prices of sugar, despite the recovery in ethanol prices.

Farming business:

• Adjusted EBITDA reached $1.5 million in 3Q25 and $19.2 million in 9M25, $15.9 million and $80.0 million lower year-over-year, respectively. Excluding the sale of La Pecuaria farm in April 2024, Adjusted EBITDA was down $65.0 million on a year-to-date basis.
  (+) Higher volumes sold of our Dairy products and Crops.
  (+/-) Record production in our Rice operations but selling at a slower pace.
  (-) Lower prices for crops, rice and dairy products.
  (-) Year-over-year losses in the mark-to-market of our biological asset for the 2024/25 harvest season.
  (-) Higher costs in U.S. dollar terms for the 2024/25 harvest season.

Remarks

Adecoagro to Acquire Best in Class Urea Producer

• In September 2025, Adecoagro announced an agreement to acquire Nutrien Ltd.'s 50% interest in Profertil S.A., South America's largest producer of granular urea. The remaining 50% stake is held by YPF S.A., Argentina's largest oil and gas producer. The acquisition will be executed through a 80%-20% partnership between Adecoagro and Asociación de Cooperativas Argentinas ("ACA"). The total purchase price for Nutrien's shares is ~$600 million. An initial Down Payment of $120 million was made upon signing the agreement, out of which the Company contributed $96 million. Closing is expected before year-end, subject to customary conditions and YPF's 90-day right of first refusal.
• This acquisition represents a transformational step in Adecoagro's strategy to expand its agro-industrial platform and further diversify its revenue base. Profertil is one of the lowest cost producers of urea and ammonia globally, with access to competitively priced natural gas and located in a net importing region. The company is led by an experienced management with a proven track record, has fully dollarized revenues and consistent cash generation—averaging $390 million in EBITDA per year between 2020 and 2024—.

2025 Shareholder Distribution

• On November 19, we will pay the second $17.5 million cash dividend ($0.17484886 per share) to shareholders of record as of November 3, completing a total annual cash dividend of $35.0 million. During the year we also invested $10.2 million in repurchasing 1.1% of the company's equity (1.1 million shares at an average price of $9.65 per share). With a total of $45.2 million distributed, the Company concludes its 2025 Shareholder Distribution Program.

Independent Farmland Appraisal Report

• As of September 30, 2025, Cushman & Wakefield updated its independent appraisal of Adecoagro's farmland which consists of 210,371 hectares valued at $714.8 million (4.7% higher year-over-year). The Company's equity book value, net of non-controlling interests, is $13.7 per share.

Resignation of Mr. Daniel González as Board Member

• Mr. Daniel González has resigned from the Company's Board of Directors, effective November 3, 2025. He has been a member of the Company's Board since 2014, and during his tenure contributed meaningfully to the Company's growth and development. We thank Daniel for his commitment and valuable service, which have helped make Adecoagro a better company.

Non-Gaap Financial Measures:  For a full reconciliation of non-gaap financial measures please refer to page 22 of our 3Q25 Earnings Release found on Adecoagro's website (ir.adecoagro.com)

Forward-Looking Statements:  This press release contains forward-looking statements that are based on our current expectations, assumptions, estimates and projections about us and our industry. These forward-looking statements can be identified by words or phrases such as "anticipate," "forecast", "believe," "continue," "estimate," "expect," "intend," "is/are likely to," "may," "plan," "should," "would," or other similar expressions.

The forward-looking statements included in this press release relate to, among others: (i) our business prospects and future results of operations; (ii) weather and other natural phenomena; (iii) developments in, or changes to, the laws, regulations and governmental policies governing our business, including limitations on ownership of farmland by foreign entities in certain jurisdictions in which we operate, environmental laws and regulations; (iv) the implementation of our business strategy; (v) the correlation between petroleum, ethanol and sugar prices; (vi) our plans relating to acquisitions (including our potential purchase of Profertil), joint ventures, strategic alliances or divestitures, and to consolidate our position in different businesses; (vii) the efficiencies, cost savings and competitive advantages resulting from acquisitions; (viii) the implementation of our financing strategy, capital expenditure plan and expected shareholder distributions; (ix) the maintenance of our relationships with customers; (x) the competitive nature of the industries in which we operate; (xi) the cost and availability of financing; (xii) future demand for the commodities we produce; (xiii) international prices for commodities; (xiv) the condition of our land holdings; (xv) the development of the logistics and infrastructure for transportation of our products in the countries where we operate; (xvi) the performance of the South American and world economies; and (xvii) the relative value of the Brazilian Reais, the Argentine Peso, and the Uruguayan Peso compared to other currencies.

These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may turn out to be incorrect. Our actual results could be materially different from our expectations. In light of the risks and uncertainties described above, the estimates and forward-looking statements discussed in this press release might not occur, and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to, the factors mentioned above. Because of these uncertainties, you should not make any investment decision based on these estimates and forward-looking statements.

The forward-looking statements made in this press release relate only to events or information as of the date on which the statements are made in this press release. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events.

To read the full 3Q25 earnings release, please access ir.adecoagro.com. A conference call to discuss 3Q25 results will be held on November 12, 2025, with a live webcast through the internet:

Conference Call
November 12, 2025
10 a.m. US EST
12 p.m. Buenos Aires
12 p.m. São Paulo
4 p.m. Luxembourg
To participate, please register at the link

Investor Relations Department
Emilio Gnecco
CFO
Victoria Cabello
IRO
Email: ir@adecoagro.com 

About Adecoagro:
Adecoagro is a leading sustainable production company in South America. Adecoagro owns 210.4 thousand hectares of farmland and several industrial facilities spread across the most productive regions of Argentina, Brazil and Uruguay, where it produces over 3.1 million tons of agricultural products and over 1 million MWh of renewable electricity.

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SOURCE Adecoagro S.A.

FAQ

What did Adecoagro (AGRO) report for 3Q25 Adjusted EBITDA on November 11, 2025?

Adecoagro reported 3Q25 Adjusted EBITDA of $115.1 million on November 11, 2025.

How did Adecoagro's Sugar, Ethanol & Energy segment perform in 3Q25 (AGRO)?

The segment posted $120.5 million Adjusted EBITDA in 3Q25, a 20.3% YoY increase and achieved an all-time crushing record of 4.9 million tons.

What is the status and cost of Adecoagro's Profertil acquisition (AGRO)?

Adecoagro agreed to acquire Nutrien's ~50% stake in Profertil for approximately $600 million and contributed a $96 million upfront payment.

How much farmland value did Adecoagro report as of September 30, 2025 (AGRO)?

Cushman & Wakefield appraised Adecoagro's farmland at $714.8 million as of September 30, 2025, a 4.7% YoY increase.

What is Adecoagro's leverage after 3Q25 results (AGRO)?

Net Debt to LTM Adjusted EBITDA stood at 2.8x following 3Q25 results and the Profertil down payment.

What shareholder distributions did Adecoagro (AGRO) complete in 2025 and when is the next payment?

Adecoagro completed $45.2 million in 2025 distributions (including $35.0 million dividends) and will pay a second cash dividend on November 19, 2025.