Arizona Tribune - American Vanguard Reports Third Quarter 2025 Results

NEWPORT BEACH, CA / ACCESS Newswire / November 10, 2025 / American Vanguard ^® Corporation, a diversified specialty and agricultural products company that develops, manufactures, and markets solutions for crop protection and nutrition, turf and ornamental management and commercial pest control, today reported financial results for the third quarter ended September 30, 2025.

Financial and Operational Highlights Third Quarter 2025 - versus Third Quarter 2024 ¹ :

• Net sales of $119 million vs. $118 million;

• Gross profit margin of 29% vs. 15%;

• Net loss of $12.4 million vs. $25,7 million

• Adjusted EBITDA ^[2] of $8.2 million vs. $1.8 million;

• EPS of $(0.43) vs. ($0.91);

• Total inventory of $199 million, down $47 million year-over-year.

Dak Kaye, CEO of American Vanguard, stated "Since joining the company 11 months ago, my message has been to simplify, prioritize and deliver. I can see that our efforts to follow that mantra are yielding positive results. In the midst of a challenging agricultural environment, we experienced improved results compared to the year ago period. Greater manufacturing efficiency, lower net trade working capital, and reduced operational expenses have contributed to higher gross profit margins and a substantial improvement in EBITDA. By controlling the things that we can control and leaning into our customers' needs, we have achieved these results in the midst of industry-wide uncertainty. Looking forward, we see signs of greater stability in our markets as we finish out the year and head into 2026. Against this backdrop, I am pleased to reiterate our full year 2025 adjusted EBITDA target in the range of $40 million to $44 million."

Mr. Kaye continued, "In addition, in future filings and communications we intend to change the nomenclature of our non-crop business to the Specialty business. We think that changing the name to Specialty will help to put a clearer focus on the world-class technologies that this business is bringing to market and align the business terminology with our peers."

David Johnson, Chief Financial Officer stated, "I am pleased to see the positive results of our business improvement plan. Our gross profit margin increased, in comparison to the same quarter of 2024, and our adjusted EBITDA margin increased by 540 basis points quarter-over-quarter. These results are noteworthy given the backdrop of a weak overall agricultural market, which has affected grower spending levels. We continue to keep a close eye on net trade working capital, as evidenced by a reduction in total inventory of $47 million, as compared to this time last year, which, in turn, limited the need to access our credit facility. Also, as planned we continue to wind down spending on our business transformation, which was almost $7 million lower than the year ago period, and down more than $11 million when compared to the first nine months of 2025. We have transitioned the initial transformation effort towards an internally driven business improvement plan; accordingly, we expect that associated expenses will continue to decrease over the coming quarters. In addition, we recorded a total charge of $7.6 million to cover products liability claims of $6.7 million and related expenses, including the recovery and disposal of unused material at growers, arising from one of our products that had been contaminated by the third party formulator; in the future we expect to fully recover this expense through recourse against the counterparty and its insurers. The charge is included as an adjustment to EBITDA. One final point to note, the fourth quarter has historically been our strongest period, and we expect that to be the case this year. Given this seasonal strength, we expect to generate a material amount of free cash flow during this period, which we plan to allocated towards debt paydown."

Earnings Conference Call
The company will be hosting an earnings conference call at November 10, 2025 at 9 am Eastern Time/6 am Pacific Time.

The conference call can be accessed through the following link: https://www.webcaster5.com/Webcast/Page/3070/53091

A replay of this event can be accessed through the company website.

The company plans to post on the Investor Relations section of the company's website a supplemental presentation that should be read in connection with this earnings release.

About American Vanguard
American Vanguard Corporation is a diversified specialty and agriculture products company that develops and markets products for crop protection and management, turf and ornamentals management, and public and animal health. Over the past 20 years, through product and business acquisitions, the Company has significantly expanded its operations and now has more than 1,000 product registrations worldwide. To learn more about the Company, please reference www.american-vanguard.com.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release the matters set forth in this press release include forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." These forward-looking statements are based on the current expectations and estimates by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include risks detailed from time-to-time in the Company's SEC reports and filings. All forward-looking statements, if any, in this release represent the Company's judgment as of the date of this release. The company disclaims any intent or obligation to update these forward-looking statements.

Company Contact
American Vanguard Corporation
Anthony Young, Director of Investor Relations
[email protected]
(949) 221-6119

Investor Representative
Alpha IR Group
Robert Winters
[email protected]
(929) 266-6315

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
ANALYSIS OF SALES
(In thousands)
(Unaudited)

For the three months ended September 30:

For the nine months ended September 30:

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(Unaudited)

³ Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from adjusted EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company's competitors) may define adjusted EBITDA differently.

SOURCE: American Vanguard

View the original press release on ACCESS Newswire

A.Moore--AT