Kernel, a leading agricultural company in Ukraine, has released its financial results for the first half of the 2026 fiscal year, covering July to December 2025. Despite significant attacks on southern port infrastructure and ongoing security risks, the company reported an EBITDA of $247 million and a 43% increase in crop yield, while also enhancing its share of Ukrainian grain exports to 15%.
Production and Processing of Oilseeds
The total agricultural production volume increased by 43% year-on-year, reaching 2.3 million tons. The company nearly doubled its corn cultivation area, expanding it by 98% from 87,000 hectares to 172,000 hectares. This expansion resulted in a corn harvest of almost 1.6 million tons, marking a 120% increase compared to the previous year.
Kernel’s agricultural teams faced challenging weather conditions, with a prolonged summer drought followed by extended autumn rains, which significantly delayed the harvesting campaign.
High moisture levels in the corn necessitated increased drying intensity at elevators, leading to higher production costs. However, the elevated demand for drying services resulted in strong capacity utilization, generating $20 million in EBITDA for the elevator business.
To bolster business resilience, Kernel has adopted a flexible processing model. During the reporting period, the group partially shifted its processing capabilities to handle alternative crops, including soybeans.
Infrastructure: Resilience Built on Wartime Experience
The company completed a major reconstruction of its terminal in Chornomorsk, which had been damaged by a targeted Russian missile strike in August 2023.
The operational environment has significantly deteriorated, particularly since December 2025, when Russia intensified attacks on ports in Odesa. This escalation has led to increased shipping insurance costs, resulting in a 55% rise in transportation and cargo handling expenses on a quarterly basis.
War-related losses for the company during the reporting half-year exceeded $3.2 million. This includes the write-off of 188 damaged grain wagons located in occupied territories and the acknowledgment of damage to infrastructure.
Additionally, drone strikes in Odesa resulted in the loss of nearly 500 tons of sunflower oil, with financial assessments of the damaged storage facilities still ongoing.
Despite these challenges, the company continues to operate according to established protocols, swiftly adapting processes to ensure uninterrupted logistics.
Financial Stability: Key Indicators for the Half-Year
For the first half of the 2026 fiscal year, the company’s revenue totaled $1.924 billion. The EBITDA figure reached $247 million, and net profit amounted to $119 million.
Kernel invested nearly $45 million in capital expenditures, primarily focused on the reconstruction of the terminal in Chornomorsk, the purchase of agricultural machinery, grain wagons, and backup energy equipment to ensure operational autonomy.
“Every day of operation for Ukrainian businesses is a test of resilience. We continue to invest in Ukraine, restore what has been damaged, support the economy, and ensure food security for millions worldwide, despite any obstacles,” stated Kernel CEO Yevhen Osypov.
Kernel's financial results for the first half of the 2026 fiscal year reflect a robust performance despite ongoing challenges from the war in Ukraine. The company has increased its crop yield and market share while investing in infrastructure and maintaining operational resilience.