Adecoagro S.A.:Adjusted EBITDA reached $115.1 million in 3Q25.

Core Insights - Adecoagro S.A. reported its third-quarter results for 2025, highlighting a mixed performance across its business segments, with a notable increase in Adjusted EBITDA for the Sugar, Ethanol & Energy business but a decline in the Farming business [1][2]. Sugar, Ethanol & Energy Business - Adjusted EBITDA reached $120.5 million in 3Q25, a 20.3% increase year-over-year, while year-to-date it totaled $218.4 million, down 15.6% compared to 9M24 [3]. - The company shifted to an ethanol-max scenario, achieving 58% in 3Q25 and 55% in 9M25 due to better margins compared to sugar [3]. - Crushing volumes hit an all-time record of 4.9 million tons in 3Q25, a 20.4% increase from 3Q24, with year-to-date crushing at 9.8 million tons [3]. - Production costs remained stable in 3Q25, but year-to-date costs increased to 8.3 cents per pound from 7.8 cents per pound in 9M24 due to lower TRS equivalent produced [3]. - Net sales declined in both 3Q25 and 9M25 due to lower selling volumes and prices of sugar, despite a recovery in ethanol prices [3]. Farming Business - Adjusted EBITDA for the Farming business was $1.5 million in 3Q25 and $19.2 million in 9M25, down $15.9 million and $80.0 million year-over-year, respectively [4]. - Excluding the sale of La Pecuaria farm, Adjusted EBITDA decreased by $65.0 million year-to-date [4]. - Higher volumes of dairy products and crops were sold, but lower prices for crops, rice, and dairy products negatively impacted results [4]. - The company experienced year-over-year losses in the mark-to-market of biological assets for the 2024/25 harvest season and faced higher costs in U.S. dollar terms for the same period [4]. Acquisition Strategy - Adecoagro announced an agreement to acquire Nutrien Ltd.'s 50% interest in Profertil S.A. for approximately $600 million, with an initial down payment of $120 million [7]. - This acquisition is expected to enhance Adecoagro's agro-industrial platform and diversify its revenue base, as Profertil is one of the lowest-cost producers of urea globally [7]. - The acquisition is structured as an 80%-20% partnership between Adecoagro and Asociación de Cooperativas Argentinas, with closing expected before year-end [7]. Shareholder Distribution - The company will pay a second cash dividend of $17.5 million on November 19, 2025, completing a total annual cash dividend of $35.0 million [8]. - In 2025, Adecoagro also repurchased 1.1% of its equity, totaling $10.2 million [8]. Farmland Valuation - As of September 30, 2025, Adecoagro's farmland, consisting of 210,371 hectares, was valued at $714.8 million, reflecting a 4.7% year-over-year increase [9].