Market Overview - All major U.S. indices increased by over 1% due to optimism from progress in U.S.-Iran talks, easing tensions in the Middle East, which also led to a decline in oil prices [1][10] - The U.S. economy remains resilient with cooling inflation, strong corporate earnings, and expectations of rate cuts in the coming year [2] Investment Strategy - As geopolitical concerns diminish, stock selection becomes crucial, with value investing presenting opportunities to acquire solid businesses at attractive prices [3] - Earnings yield is a key metric for value investors, indicating potential undervaluation of stocks [4][10] Stock Picks - **Adecoagro S.A. (AGRO)**: Agricultural company with a projected 872% year-over-year earnings growth for 2026 and a Zacks Rank 1 [11] - **Cable One (CABO)**: Broadband provider with a projected 161% year-over-year earnings growth for 2026 and a Zacks Rank 1 [12] - **Dana Incorporated (DAN)**: Supplier of energy-management technologies with a projected 1,358% year-over-year earnings growth for 2026 and a Zacks Rank 1 [13] - **Centerra Gold (CGAU)**: Mid-tier gold and copper producer with a projected 56% year-over-year earnings growth for 2026 and a Zacks Rank 1 [14] - **National Energy Services Reunited Corp. (NESR)**: Oilfield solutions provider with a projected 94% year-over-year earnings growth for 2026 and a Zacks Rank 1 [15]

Group 1 - Adecoagro S.A. (NYSE:AGRO) is a significant player in the agriculture sector, focusing on food production and renewable energy, primarily operating in Argentina, Brazil, and Uruguay [1] - The company has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings prospects and growing optimism about future earnings [3][6] - AGRO's market capitalization is approximately $7.27 billion, with a trading volume of 716,491 shares on the NYSE, and the stock has fluctuated between $14.15 and $14.87 today [5] Group 2 - CEO BOSCH MARIANO sold 100,000 shares at approximately $14.50 each but retains a significant stake of 897,249 shares, indicating confidence in the company's future [2][6] - AGRO is noted for its strong momentum, liquidity, and solid fundamentals, making it a resilient investment choice amid global financial uncertainties [4][6] - The company generates over 1 million megawatt-hours of renewable energy, which reduces costs and reliance on external energy sources, enhancing its stability [4]

Core Viewpoint - Adecoagro (AGRO) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, making it a valuable tool for investors [2][4]. - The recent upgrade reflects an improvement in Adecoagro's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5]. Earnings Estimate Revisions - Adecoagro is projected to earn $1.39 per share for the fiscal year ending December 2026, with no year-over-year change expected [8]. - Over the past three months, the Zacks Consensus Estimate for Adecoagro has increased by 79.9%, indicating a significant upward revision in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Adecoagro's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Group 1: Market Overview - Investors are concerned that the war in Iran could negatively impact global financial markets and economies, leading to expected volatility in the stock market [1] - Amid rising fears, low-beta stocks such as Adecoagro S.A. (AGRO), ProAssurance Corporation (PRA), Eni SpA (E), and Liquidia Corporation (LQDA) are highlighted as potential investment options [1][8] Group 2: Company Insights - **Adecoagro (AGRO)**: The company generates over 1 million megawatt-hours of renewable electricity annually from agricultural waste and other renewable sources, which helps reduce costs and reliance on external energy [6][8] - **ProAssurance (PRA)**: The company has increased prices for policy renewals to adapt to a challenging claims environment and reported total investments of $4.43 billion as of the end of 2025, indicating financial strength [7][8] - **Eni (E)**: Eni is actively leading the energy transition by developing a comprehensive range of decarbonized products and services aimed at achieving carbon neutrality by mid-century, maintaining competitiveness through efficient exploration despite market volatility [9] - **Liquidia (LQDA)**: The company is experiencing rapid growth in the adoption of YUTREPIA, with increasing patient referrals and market share, achieving profitability and positive cash flow, and pursuing expansion into larger market opportunities through ongoing clinical development [10][8]

Company Performance - Adecoagro (AGRO) has returned 71.9% year-to-date, significantly outperforming the average return of 3.5% for the Consumer Staples sector [4] - The Zacks Consensus Estimate for AGRO's full-year earnings has increased by 79.9% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] Industry Comparison - Adecoagro is part of the Agriculture - Operations industry, which has gained an average of 18.8% so far this year, showcasing AGRO's superior performance within its industry [6] - In contrast, US Foods (USFD), another outperforming stock in the Consumer Staples sector, has increased by 18.1% year-to-date, but belongs to the Food - Miscellaneous industry, which has declined by 2.4% [5][6] Zacks Rank - Adecoagro currently holds a Zacks Rank of 1 (Strong Buy), reflecting its strong earnings outlook and potential to outperform the market in the near term [3] - US Foods has a Zacks Rank of 2 (Buy), indicating a positive but slightly less favorable outlook compared to Adecoagro [5]

Group 1 - The company is responsible for the development of transcript-related projects [1] - It publishes thousands of quarterly earnings calls per quarter and is expanding its coverage [1]

Financial Data and Key Metrics Changes - In 2025, Adecoagro experienced a year-over-year decrease of 2% in sales and a 38% decline in adjusted EBITDA due to lower commodity prices and increased costs [10][11] - The acquisition of Profertil is expected to increase the company's size from $1.5 billion in recurring revenues to above $2 billion, with potential adjusted EBITDA rising to $700 million [9][12] - Net debt reached $1.5 billion, with a net leverage ratio increasing to 3.3 times compared to 1.2 times in 2024 [14] Business Line Data and Key Metrics Changes - The sugar, ethanol, and energy business saw adjusted EBITDA drop to $292 million, impacted by lower global sugar prices despite improved ethanol prices [16][17] - The fertilizer business faced significant downtime, resulting in a decline in net sales and adjusted EBITDA, but is expected to recover in 2026 as operations normalize [18][19] - The food and agriculture business maintained sales levels year-over-year due to higher volumes sold, but adjusted EBITDA was negatively affected by rising costs [19] Market Data and Key Metrics Changes - Urea prices have increased by 30%-40% due to international conflicts, positioning Adecoagro to benefit from higher margins as most costs are fixed [25] - The sugar market is under pressure, with Brazil maximizing ethanol production, which may lead to a future increase in sugar prices as supply decreases [80] Company Strategy and Development Direction - Adecoagro aims to be the lowest cost producer across its segments, focusing on efficiency and diversification to navigate commodity price volatility [5][11] - The company plans to simplify its business structure into three segments: sugar, ethanol, and energy; fertilizers; and food and agriculture [4][8] - Future growth avenues include expanding urea production capacity and exploring organic growth opportunities within its existing business lines [53] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging agribusiness environment in 2025 but remains optimistic about recovery and growth potential, particularly in the fertilizer segment [5][11] - The company expects a full recovery in adjusted EBITDA for the fertilizer business in 2026, driven by normalized operations and favorable market conditions [18] - Management is confident in the long-term prospects of the food and agriculture business, especially with potential tax reductions in Argentina [60] Other Important Information - The acquisition of Profertil was financed through a combination of cash, long-term debt, and equity issuance, marking a significant return to public markets since 2011 [13] - The company plans to distribute $35 million in cash dividends for 2026, reflecting its commitment to shareholder returns [15][44] Q&A Session Summary Question: Insights on the fertilizer market and its impact on margins - Management indicated that higher urea prices will directly enhance margins due to fixed costs, with expectations of continued high prices throughout the year [25][26] Question: Outlook for sugar and ethanol costs - Management anticipates a 10%-15% reduction in costs due to improved efficiencies and fixed fertilizer prices [28][30] Question: Commercialization strategy for fertilizers and ethanol - The strategy focuses on maximizing domestic sales in Argentina while pricing at import parity, with expectations of increased ethanol production due to rising gasoline prices [37][39] Question: Future growth avenues post-deleveraging - Management sees potential in expanding sugarcane crushing and urea production capacity, with no immediate plans for partnerships in the food and agriculture segment [49][53] Question: Production costs for urea and ammonia - The expected cash cost of producing urea is projected to be between $180-$190 per ton, with confidence in maintaining low production costs [61][62]

Financial Data and Key Metrics Changes - In 2025, Adecoagro experienced a year-over-year decrease of 2% in sales and a 38% decline in adjusted EBITDA due to lower commodity prices and increased costs [10][11] - The acquisition of Profertil is expected to increase recurring revenues from $1.5 billion to over $2 billion, with adjusted EBITDA potential rising from $400 million to $700 million [9][10] - Net debt reached $1.5 billion, with a net leverage ratio increasing to 3.3 times compared to 1.2 times in 2024 [14] Business Line Data and Key Metrics Changes - The sugar, ethanol, and energy business saw adjusted EBITDA drop to $292 million, impacted by lower global sugar prices despite improved ethanol margins [17][18] - The fertilizer business faced significant downtime, resulting in a decline in net sales and adjusted EBITDA year-over-year, but is expected to recover in 2026 [19][20] - The food and agriculture business maintained revenue levels due to higher volumes sold, but adjusted EBITDA was negatively affected by rising costs and uneven yields [20] Market Data and Key Metrics Changes - Urea prices have increased by 30%-40% due to international conflicts, positioning Adecoagro to benefit from higher margins as most costs are fixed [26] - The Americas are heavily reliant on urea imports, with South America importing 10 million tons annually, creating a favorable market for local producers like Adecoagro [38] Company Strategy and Development Direction - The company aims to focus on being the lowest cost producer across its segments, leveraging the acquisition of Profertil to enhance cash generation and reduce earnings volatility [3][4] - A strategic shift to three business segments—sugar, ethanol, and energy; fertilizers; and food and agriculture—aims to simplify operations and improve financial performance [5][8] - Future growth avenues include expanding urea production capacity and exploring organic growth opportunities within existing business lines [55] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging agribusiness environment in 2025 but expressed confidence in navigating the cycle through efficiency and cost management [5][6] - The company anticipates a full recovery in the fertilizer business and expects low double-digit growth in sugar cane crushing volumes for 2026 [18][19] - Management remains optimistic about the food and agriculture business, citing improvements in domestic consumption and potential tax reductions in Argentina [60] Other Important Information - The acquisition of Profertil was financed through a combination of cash, long-term debt, and equity issuance, marking a significant return to public markets since 2011 [13] - The company plans to distribute $35 million in cash dividends for 2026, subject to shareholder approval [15][45] Q&A Session Summary Question: Insights on the fertilizer market and its impact on margins - Management indicated that higher urea prices would directly enhance margins due to fixed costs, with expectations of producing 1.3 million tons annually [26][27] Question: Outlook for sugar and ethanol costs - Management expects a 10%-15% reduction in costs due to improved efficiencies and fixed fertilizer prices, despite potential increases in labor and diesel costs [29][30] Question: Commercialization strategy for fertilizers and ethanol - The strategy focuses on maximizing domestic sales in Argentina while pricing at import parity, with expectations of increased ethanol production due to rising gasoline prices [38][39] Question: Future growth avenues post-deleveraging - Management sees opportunities in expanding sugarcane crushing and potentially increasing urea production capacity, with no immediate plans for partnerships in the food and agriculture segment [49][55] Question: Production costs and market dynamics for urea - The cash cost of producing urea is estimated to be between $180-$190 per ton, with confidence in maintaining a low-cost production model [61][62]

ADECOAGRO 2 0 2 5 R E S U L T S E A R N I N G S W E B C A S T 1 DISCLAIMER This presentation 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 statement ...

Core Viewpoint - Adecoagro S.A. is a leading sustainable production company in South America, focusing on agriculture and renewable energy, and has shown resilience in revenue generation despite challenging conditions [1][2]. Financial Performance - For the earnings report on March 16, 2026, the company reported an earnings per share (EPS) of -$0.08, which met analyst expectations [2][6]. - Revenue for the period was approximately $415.9 million, exceeding the anticipated $371.9 million, indicating strong sales performance [2][6]. Strategic Developments - The acquisition of Profertil in 2025 is expected to enhance long-term value for the company [3]. - Despite a 4.8% decrease in annual crushing to 12.1 million tons due to adverse weather, the company remains optimistic about future productivity [3]. Stock Performance - Following the earnings release, AGRO's stock increased by 4.8%, opening at $10.17, reflecting positive investor sentiment [4][6]. - The stock's 50-day simple moving average is $8.67, and the 200-day average is $8.22, indicating positive momentum [4]. Financial Health - The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.56, and a current ratio of 2.80, indicating strong liquidity [5]. - AGRO's enterprise value to sales ratio is approximately 4.85, and its enterprise value to operating cash flow ratio is around 23.64, reflecting its valuation relative to sales and cash flow [5]. - Despite a low earnings yield of 0.43%, the company's strategic moves and solid financial metrics position it well for future growth [5].