Adecoagro shares surge 14.31% after-hours on $1B Profertil acquisition, boosting cash generation and scale as top South American urea producer.

Adecoagro surged 14.31% in after-hours trading following its Q4 earnings call, which highlighted the $1 billion acquisition of Profertil, transforming it into South America’s largest urea producer. The deal, funded by $400M cash, $400M debt, and $300M equity, added a stable, cash-generating fertilizer segment despite 2025 operational challenges from 90 days of downtime and weak commodity prices. Management outlined a recovery path for 2026, citing 30–40% higher urea prices, fixed gas costs through 2027, and cost reductions in sugar/ethanol operations. Additionally, Morgan Stanley upgraded AGRO to Equalweight from Underweight with a $13 price target (from $9.50), reinforcing investor optimism. The stock’s sharp rise reflects confidence in the acquisition’s long-term value, improved diversification, and favorable fertilizer market dynamics, despite 2025 EBITDA declines and elevated leverage.