[Management View]
Management emphasized their strategic focus on operational flexibility and cost control to mitigate volatility from commodity prices and weather impacts. They highlighted the diversification of crops, geographies, and production mix as integral to company resilience. The company aims to maximize margins by switching between sugar and ethanol based on market conditions and maintaining unhedged exposure on a portion of 2025 sugar production.

[Outlook]
Management expressed confidence in achieving flat year-over-year sugarcane crushing volumes for full-year 2025, attributed to accelerated processing and improved cane availability in the second half. They are optimistic about both sugar and ethanol prices, expecting demand to remain strong and inventory levels to be lower than the previous year.

[Financial Performance]
- Sales: $392 million in Q2 2025, $716 million year-to-date.
- Adjusted EBITDA: $55 million in Q2 2025, $91 million year-to-date, declining 60% YoY.
- Net debt: $699 million, 11% YoY increase, net leverage ratio at 2.3x.

[Q&A Highlights]
Question 1: What are the main drivers behind the expected crushing acceleration in the second half of 2025?
Answer: The company experienced a difficult first quarter due to drought and a rainy second quarter. However, they have been crushing well since July, reaching daily records. They expect better yields in the last quarter and are optimistic about reaching the same level of crushing as last year.

Question 2: What are the main triggers for better sugar prices going forward, and when do you intend to start hedging commitments for 2026?
Answer: The company is optimistic about both sugar and ethanol prices. They expect ethanol demand to remain strong and sugar production in Brazil to be lower than expected. They have already hedged 5% of next year's production and will accelerate hedging as market conditions become clearer.

Question 3: How do you expect to maintain cane crushing volumes flat despite lower yields?
Answer: The company expects yields to be similar to last year, with a slightly higher area due to less third-party sugarcane. They anticipate lower TRS content due to frost but believe they can maintain similar crushing volumes.

Question 4: What is the impact of Tether's entry as a shareholder on the company's strategy?
Answer: Tether supports the company's disciplined capital allocation policy and focus on organic growth. They are enthusiastic about the potential returns from a Bitcoin mining pilot, which aims to monetize surplus energy.

Question 5: How do you see cost advancements and margin pressures in the farming business?
Answer: The company is reducing leased areas to improve margins and focusing on cost control. They expect the dairy and rice businesses to remain stable, while the crop segment, particularly peanuts, faces significant price drops.

Question 6: Are there any plans for M&A in the sugar and ethanol sector?
Answer: The company is open to inorganic growth opportunities but will only pursue them if the returns are higher than their organic growth projects. They aim to maintain a net leverage ratio below 2x EBITDA.

Question 7: Can you provide more details about the partnership with Tether for Bitcoin mining?
Answer: The partnership is a test using 5% of the company's energy production. They aim to sell energy at attractive prices, potentially above $80 per megawatt hour, but need to see the results before making further commitments.

[Sentiment Analysis]
The tone of the management was cautiously optimistic, focusing on operational flexibility and strategic diversification to navigate market challenges. Analysts' questions reflected concerns about cost pressures, market conditions, and the impact of new initiatives like Bitcoin mining.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-----------------------|---------|---------|------------|
| Sales | $392M | $392M | 0% |
| Adjusted EBITDA | $55M | $137.5M | -60% |
| Net Debt | $699M | $629M | +11% |
| Net Leverage Ratio | 2.3x | 1.3x | +1.0x |
| Sugarcane Crushing | 3.4M tons | 4.25M tons | -20% |
| Ethanol Sales | 320,000 m³ | 271,186 m³ | +18% |
| Carbon Credits (CBios)| 390,000 | 330,000 | +18% |

[Risks and Concerns]
- Adjusted EBITDA declined 60% YoY due to losses in biological assets, lower crop and rice prices, and higher US dollar costs.
- Crushing volume in the sugar, ethanol, and energy business was 20% lower YoY.
- Crop yields and margins remained under pressure, with average yields falling below expectations.
- Net debt increased by 11% YoY, with a net leverage ratio of 2.3x.

[Final Takeaway]
Adecoagro's Q2 2025 performance was marked by significant challenges, including lower crop yields, reduced crushing volumes, and increased costs. However, the company's strategic focus on operational flexibility and cost control, along with diversification across crops and geographies, positions it to navigate these challenges. Management remains optimistic about achieving flat sugarcane crushing volumes for the year and sees potential in both sugar and ethanol markets. The partnership with Tether for Bitcoin mining represents an innovative approach to monetizing surplus energy, though its impact remains to be seen. Investors should monitor the company's ability to manage costs and leverage while exploring growth opportunities.