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Adecoagro (AGRO)
NYSE:AGRO
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Adecoagro SA (AGRO) AI Stock Analysis

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AGRO

Adecoagro SA

(NYSE:AGRO)

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Neutral 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
$11.00
▲(3.97% Upside)
Action:Reiterated
Date:08/20/26
The score is driven primarily by a moderate financial profile: improving profitability and revenue are offset by higher leverage and weak free-cash-flow conversion. Earnings call commentary adds support via stronger operational momentum and a stated deleveraging path, but valuation is a major constraint due to the very high P/E. Technicals are mixed, with near-term support but still-negative momentum.
Positive Factors
Operating Profitability Rebound
Record EBITDA shows that higher urea production, stronger cane availability and ethanol-focused output are translating into materially better operating earnings. Sustained improvement across multiple segments could strengthen internal funding and reduce earnings dependence on any single commodity.
Negative Factors
Elevated Acquisition-Related Leverage
Leverage remains high despite early deleveraging, increasing sensitivity to commodity downturns, interest costs and seasonal working-capital needs. The planned reduction toward roughly 2.0x depends on stronger EBITDA and cash generation, so financial flexibility remains constrained over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating Profitability Rebound
Record EBITDA shows that higher urea production, stronger cane availability and ethanol-focused output are translating into materially better operating earnings. Sustained improvement across multiple segments could strengthen internal funding and reduce earnings dependence on any single commodity.
Read all positive factors

Adecoagro SA (AGRO) vs. SPDR S&P 500 ETF (SPY)

Adecoagro SA Business Overview & Revenue Model

Company Description
Adecoagro S.A., engages in agricultural and agro-industrial activities in Argentina, Brazil, Chile, and Uruguay. The company operates through two segments, Farming; and Sugar, Ethanol, and Energy. The company is involved in the production of a ran...
How the Company Makes Money
Adecoagro makes money primarily by producing, processing, and selling agricultural and food commodities and related co-products through multiple operating segments. A major revenue stream comes from its Sugar, Ethanol & Energy business, where it s...

Adecoagro SA Earnings Call Summary

Earnings Call Date:Aug 13, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial milestones: record consolidated adjusted EBITDA, a standout fertilizers performance (22% higher urea production, >100% EBITDA growth in the segment), solid crushing growth (+3% YoY), strategic M&A (Profertil closed payment and Carapo acquisition) and improved liquidity (liquidity ratio up to 1.9x). Offsetting these positives were softer sugar/ethanol results driven by lower sugar prices and TRS, depressed ethanol prices leading to inventory builds, FX-driven cost pressure in Brazil, and seasonally elevated net debt. Management expects fertilizer and sugar/ethanol fundamentals to support future EBITDA, believes Carapo is accretive and synergies are sizable, and remains on a deleveraging path.
Positive Updates
Record Consolidated Adjusted EBITDA
Consolidated adjusted EBITDA reached record levels of $258 million year-to-date and $173 million in Q2 2026, reflecting strong earnings generation across the diversified platform.
Negative Updates
Decline in Sugar/Ethanol Financial Performance
Sugar, ethanol & energy adjusted EBITDA declined versus prior year (Q2: $53 million; YTD: $94 million) due to lower sugar prices, lower sugar volumes sold (shift to ethanol), and mark-to-market impacts from lower Consecana prices on biological assets.
Read all updates
Q2-2026 Updates
Negative
Record Consolidated Adjusted EBITDA
Consolidated adjusted EBITDA reached record levels of $258 million year-to-date and $173 million in Q2 2026, reflecting strong earnings generation across the diversified platform.
Read all positive updates
Company Guidance
Management guided to stronger-than-expected full‑year results driven largely by fertilizers and reiterated several numerical targets: consolidated adjusted EBITDA hit record $258M year‑to‑date and $173M in Q2; gross sales were $535M in Q2 and $928M YTD; fertilizers saw urea production of 617k tons YTD (up 22% YoY in the quarter, zero downtime vs 31 days last year) toward a 1.3M ton annual production target and benefited from international urea prices that peaked near $800/ton, leading them to expect full‑year fertilizer EBITDA above initial projections; sugar, ethanol & energy crushed 3.5M tons of cane in Q2 (+3% YoY), achieved a 78% ethanol mix YTD, finished the quarter with ~41% of YTD ethanol production in inventory, reported $53M adjusted EBITDA in Q2 ($94M YTD) and said they still expect low‑double‑digit crushing volume growth this year (roughly ~10%); they reiterated a target of ~10% production cash‑cost reduction versus last year; food & agriculture harvested 92% of planted area producing >1.1M tons YTD; pro forma net leverage stood at 3.0x with liquidity improving to 1.9x (from 1.2x) despite a $58M inventory increase; the Carapo mill acquisition is expected to close soon, be accretive and not alter year‑end deleveraging targets; hedges stand at ~70% of 2026 sugar at $0.157/lb and ~16% of 2027 at $0.174/lb; and shareholder returns include a $17.5M dividend paid in May ($0.12/share) with a second $17.5M installment due in November ($35M total).

Adecoagro SA Financial Statement Overview

Summary
Income statement shows a rebound (revenue up ~9.9% TTM and profitability turned positive), but results remain below 2023 levels and are volatile. Balance sheet risk is elevated with meaningfully higher debt and debt-to-equity around ~1.34, while ROE is modest (~3.0%). Cash flow quality is a key drag: free cash flow is low (~$47.7M) and cash conversion is weak versus net income, limiting flexibility given higher leverage.
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
48
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.65B1.43B1.52B1.30B1.35B1.12B
Gross Profit494.38M351.28M434.84M415.39M465.63M484.25M
EBITDA585.23M375.62M412.92M651.61M470.89M453.24M
Net Income49.48M-8.35M92.34M226.29M108.14M130.67M
Balance Sheet
Total Assets5.25B5.25B3.11B3.16B3.11B2.58B
Cash, Cash Equivalents and Short-Term Investments330.51M472.98M211.24M339.78M329.22M199.77M
Total Debt2.33B1.95B1.12B1.28B1.35B1.06B
Total Liabilities3.37B3.46B1.71B1.90B1.95B1.53B
Stockholders Equity1.74B1.66B1.37B1.23B1.13B1.01B
Cash Flow
Free Cash Flow47.72M20.60M65.00M191.48M139.80M135.66M
Operating Cash Flow284.33M284.86M328.33M434.91M370.03M348.66M
Investing Cash Flow-1.15B-951.77M-231.56M-111.55M-299.26M-175.22M
Financing Cash Flow971.24M834.49M-274.00M-208.74M-23.57M-303.13M

Adecoagro SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.58
Price Trends
50DMA
9.95
Positive
100DMA
11.66
Negative
200DMA
10.27
Positive
Market Momentum
MACD
-0.05
Negative
RSI
63.07
Neutral
STOCH
90.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGRO, the sentiment is Positive. The current price of 10.58 is above the 20-day moving average (MA) of 9.72, above the 50-day MA of 9.95, and above the 200-day MA of 10.27, indicating a bullish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 63.07 is Neutral, neither overbought nor oversold. The STOCH value of 90.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGRO.

Adecoagro SA Risk Analysis

Adecoagro SA disclosed 73 risk factors in its most recent earnings report. Adecoagro SA reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Adecoagro SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$319.17M13.067.56%-23.88%115.43%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
55
Neutral
$1.53B168.263.03%2.80%7.20%-10.41%
54
Neutral
$1.26B17.104.38%2.40%8.32%208.64%
51
Neutral
$296.00M188.101.50%0.52%-61.38%
44
Neutral
$353.92M-129.83-0.70%3.81%0.76%-105.51%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AGRO
Adecoagro SA
10.94
2.63
31.65%
ALCO
Alico
39.50
5.60
16.52%
VFF
Village Farms International
2.57
-0.31
-10.76%
LND
BrasilAgro Cia Brasileira de Propriedades Agricolas
3.72
0.06
1.64%
DOLE
Dole
13.37
-0.70
-4.98%

Adecoagro SA Corporate Events

Adecoagro Posts Record Adjusted EBITDA and Advances Deleveraging in 2Q26
Aug 11, 2026
Adecoagro S.A. reported on August 11, 2026 its financial results for the second quarter and six-month period ended June 30, 2026, highlighting record adjusted EBITDA of $172.5 million in 2Q26 and $258.3 million in 6M26. Despite gross sales remaini...
Adecoagro to Acquire Caarapó Mill, Expanding Sugar & Ethanol Cluster in Brazil
Jul 20, 2026
On July 20, 2026, Adecoagro announced it has signed an agreement with Raízen Group to acquire the Caarapó sugar and ethanol mill in Mato Grosso do Sul, Brazil, including owned sugarcane fields and supply contracts. The deal, valued at an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2026