Adecoagro Reports $18 Million Loss and High Leverage in 2025
Agribusiness firm Adecoagro reported a net loss of $17.983 million in 2025, a significant decline from the previous year's profit. This was primarily due to falling commodity prices and increased debt from the Profertil acquisition. The company's leverage ratio surged to 4x, with both revenue and EBITDA experiencing substantial drops, although its sugar-energy business maintained low operating costs.
Agribusiness company Adecoagro, controlled by cryptocurrency firm Tether, saw its 2025 financial results significantly impacted by a downturn in various commodity prices, ranging from grains to sugar. This was further compounded by the company's increased debt following its acquisition of Profertil, a fertilizer business previously controlled by Nutrien and Argentina's YPF.
Adecoagro concluded 2025 with a net loss of $17.983 million, a stark deterioration compared to the previous year's positive result of $202.557 million. Concurrently, Adecoagro's leverage ratio surged from 1.2 times in the prior year to 4 times by the end of last year. Gross revenue declined by 2.1% to $1.446 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by 37.7% to $276.707 million. Consequently, the EBITDA margin decreased by 34.8% to 20%.
The sugar-energy business, where the company operates three sugarcane mills in Brazil and which represents its primary source of cash generation, experienced a 19.9% year-on-year reduction in EBITDA, settling at $291.5 million. The company attributed this decline to reduced sugarcane crushing volumes, falling sugar prices, and lower commodity sales volumes. Despite these challenges, Adecoagro maintained one of the lowest operating costs in the industry, at 12.8 cents per pound, even with less cost dilution due to lower sugarcane processing.