Sucro (SUGR) Q2 2026 earnings summary

Executive summary

• Achieved a quarterly record with nearly 100,000 metric tons of sugar refined, driven by new capacity and strategic transformation toward higher-margin segments.

• Net income reached $8.1 million in Q2 2026, over four times higher year-over-year, with year-to-date net income at $13.5 million.

• Completed the acquisition of Tile World Corporation, expanding presence in retail sugar products and expected to be immediately accretive to earnings.

• Strategic review initiated to explore opportunities to unlock shareholder value, reflecting belief that current share price undervalues business prospects.

Financial highlights

• Q2 revenue was $130.6 million, down 43.7% year-over-year from $231.9 million, due to lower volumes and average prices.

• Adjusted gross profit was $12.8 million (vs. $13.3 million prior year); adjusted gross margin improved to 9.8% from 5.8%.

• Adjusted EBITDA was $8.3 million, down from $10.4 million; adjusted EBITDA margin rose to 6.3% from 4.5%.

• Net income increased to $8.1 million from $2 million, mainly due to $21.7 million in unrealized inventory gains, partly offset by $12.1 million in forward contract losses.

• Free cash flow reached a new quarterly record of $7.7 million, reversing negative Q1, with $4.6 million positive for the first half.

Outlook and guidance

• Optimistic outlook for H2 2026 and into 2027, expecting improved profitability from new refinery ramp-ups and new commercial agreements.

• U.S. sugar market fundamentals are improving, with USDA projecting a tighter supply/demand balance and higher prices.

• Strategic relationship with Beta San Miguel expected to provide access to duty-free Mexican sugar, supporting U.S. operations.

• Focus for H2: ramp up University Park, consolidate Hamilton operations, bring Belize refinery online, and grow engineering services.