Adecoagro SA (0DWL.L) Q2 2025 Earnings Report

Summary of QQ2 2025 performance:
- Top-line momentum: QQ2 2025 revenue rose to USD 382.08 million, up 137.65% year over year (YoY) and 17.38% quarter over quarter (QoQ). The growth reflects a favorable mix and volume increases across the diversified agroindustrial platform. Gross profit was USD 74.60 million, yielding a gross margin of 19.53%. EBITDA stood at USD 81.53 million and operating income was USD 5.70 million, indicating continued operating leverage despite a muted bottom-line in the quarter.
- Bottom-line challenge from non-operating charges: Net income declined to negative USD 17.56 million in QQ2 2025, with total other income/expenses net aportar USD -21.44 million and interest expense around USD 22.67 million. Earnings per share (EPS) were -0.036 in QQ2 2025, reflecting a significant non-operating headwind even as EBITDA remained positive.
- Cash generation and balance sheet durability: Operating cash flow was USD 130.11 million; capital expenditures were USD 56.27 million, producing free cash flow of USD 73.84 million for the quarter. Cash and cash equivalents totaled USD 180.61 million at period-end, with total debt USD 1.2687 billion and net debt USD 1.0880 billion. The company posted a solid current asset base (USD 1.0114 billion) versus current liabilities (USD 0.5311 billion), implying near-term liquidity resilience although leverage remains a material consideration.
- Strategic implications: The quarter demonstrates robust revenue growth and cash generation potential driven by the diversified asset base (agriculture, dairy, energy cogeneration, land transformation). However, the lack of formal forward guidance and ongoing debt-service obligations warrant close attention to deleveraging prospects, cost containment, and the profitability of non-operating items in coming periods.