Executive Summary
Adecoagro SA delivered Q1 2025 results that exhibit a meaningful step-up in revenue to USD 325.5 million alongside a compression of profitability metrics and a negative free cash flow posture for the quarter. On a QoQ basis, revenue declined 13.0% from USD 374.2 million in Q4 2024, consistent with seasonality and step-downs in certain lines of business as the company progresses through its asset and operating-cycle unwind. Despite the topline softness, quarterly EBITDA stood at USD 83.5 million and the EBITDA margin reached approximately 25.7%, underscoring the business’s strong unit economics in a high-capex, asset-heavy model. Net income was USD 18.1 million with an EPS of USD 0.036, reflecting margin compression and higher depreciation and amortization. Free cash flow remained negative at USD -103.8 million, driven by substantial working-capital movements and elevated capital expenditures, yielding a negative operating cash flow of USD -19.1 million for the quarter. The balance sheet remains heavily leveraged, with total debt around USD 1.275 billion and net debt of USD 1.096 billion, while cash and short-term investments total USD 238.9 million. These dynamics imply a near-term focus on capital discipline, working-capital efficiency, and debt refinancing/strategic asset monetization to improve liquidity and financing costs. The results suggest a company in the early stages of transitioning its asset base toward higher-value, cash-generative streams (land disposition opportunities, renewable energy cogeneration, and crop-cycle optimization) even as near-term profitability and liquidity pressures persist.
Key Performance Indicators
QoQ: -13.02% | YoY:-17.85%
QoQ: 118.82% | YoY:-46.01%
QoQ: -92.35% | YoY:-91.23%
Key Insights
Revenue: USD 325.506 million (Q1 2025). Gross Profit: USD 53.017 million; Gross Margin: 16.29%. EBITDA: USD 83.542 million; EBITDA Margin: 25.66%. Operating Income: USD 3.638 million; Operating Margin: 1.12%. Net Income: USD 18.078 million; Net Margin: 5.55%. EPS: USD 0.036 (diluted: USD 0.036); Weighted avg shares (diluted): 502.165 million. Free Cash Flow: USD -103.843 million. Operating Cash Flow: USD -19.071 million. Cash and cash equivalents: USD 179.53 million. Total debt: USD 1,275.127 mi...
Financial Highlights
Revenue: USD 325.506 million (Q1 2025). Gross Profit: USD 53.017 million; Gross Margin: 16.29%. EBITDA: USD 83.542 million; EBITDA Margin: 25.66%. Operating Income: USD 3.638 million; Operating Margin: 1.12%. Net Income: USD 18.078 million; Net Margin: 5.55%. EPS: USD 0.036 (diluted: USD 0.036); Weighted avg shares (diluted): 502.165 million. Free Cash Flow: USD -103.843 million. Operating Cash Flow: USD -19.071 million. Cash and cash equivalents: USD 179.53 million. Total debt: USD 1,275.127 million; Net Debt: USD 1,095.597 million. Cash and short-term investments: USD 238.97 million. Total assets: USD 3,350.293 million. Total current assets: USD 1,101.428 million. Total current liabilities: USD 555.4 million. Long-term debt: USD 964.713 million. Shareholders’ equity: USD 1,420.029 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
325.51M |
-17.85% |
-13.02% |
| Gross Profit |
53.02M |
-46.01% |
118.82% |
| Operating Income |
3.64M |
-91.23% |
-92.35% |
| Net Income |
18.08M |
89.78% |
10.46% |
| EPS |
0.04 |
91.49% |
12.50% |
Management Commentary
Transcript content is not provided in the supplied data. Consequently, quotes or management remarks from the QQ1 2025 earnings call could not be extracted. The analysis below relies on disclosed financials and public disclosures related to the quarter. If you can supply the earnings call transcript, I can integrate verbatim quotes and categorize them by themes (strategy, operations, market conditions) with appropriate context and significance.
Forward Guidance
No explicit forward guidance was included in the provided data. Based on the QQ1 2025 results and the company’s asset-light monetization and capital-allocation posture, the near-term trajectory will hinge on: (1) improving working capital efficiency to reduce cash conversion cycle pressure (notably accounts receivable and inventories); (2) sustaining EBITDA resilience while moderating depreciation and amortization burden through capex discipline and potential asset dispositions; (3) optimizing the capital structure via refinancing opportunities or selective asset monetization to reduce net debt and interest expense; (4) leveraging cogeneration and crop-cycle revenue streams to stabilize cash flows in a volatile commodity environment. Management’s ability to convert the substantial asset base into recurring cash flow will be critical for deleveraging and expanding liquidity. Key factors investors should monitor include working capital days, capex intensity, debt maturities, energy sale agreements (cogeneration revenue), farmland disposition activity, and any guidance updates tied to commodity price trajectories and currency volatility.