American Vanguard Corporation reported its third‑quarter 2025 financial results for the period ended September 30, 2025, showing a dramatic rebound in adjusted EBITDA to $8.2 million from $1.8 million a year earlier. Net sales edged up to $119 million, a modest increase from $118 million, while the company posted a net loss of $12.4 million versus a $25.7 million loss in the same quarter last year. Gross profit margin expanded sharply to 29% from 15% in Q3 2024, and total inventory fell by $47 million year‑over‑year, underscoring a significant improvement in working‑capital management.
The jump in adjusted EBITDA reflects a combination of lower transformation spending, tighter manufacturing controls, and the inventory reduction, which freed cash and lowered cost of goods sold. The higher gross margin—nearly double the prior‑year level—was driven by a shift toward higher‑margin U.S. Crop sales, which grew 8%, offsetting a 6% decline in international sales that were hit by the discontinuation of lower‑margin products in Brazil. These operational gains have translated into a stronger EBITDA position even as top‑line growth remained flat.
Revenue fell short of analyst expectations of $128 million, missing by $9 million. The miss is largely attributable to weaker international demand and the exit of lower‑margin product lines, while domestic demand remained resilient. The company’s net loss was amplified by a $7.6 million product‑liability and contamination‑recovery charge, which management expects to recover from the counterparty and insurers. Excluding this one‑time charge, the loss would have been $4.8 million, indicating that core operations are improving.
American Vanguard reaffirmed its full‑year 2025 adjusted EBITDA guidance of $40 million to $44 million, signaling confidence that the operational turnaround will continue into the fourth quarter. Management highlighted expected seasonal strength in Q4, which should generate material free cash flow for debt paydown. The company also announced a planned rebranding of its non‑crop business to “Specialty” to better reflect its product mix.
CEO Dak Kaye said the quarter “demonstrates the effectiveness of our simplification and prioritization strategy,” noting that manufacturing efficiencies and inventory discipline have been key drivers. CFO David Johnson added that the improved gross profit and adjusted EBITDA margins confirm the success of the business‑improvement plan and that the inventory reduction has reduced reliance on the company’s credit facility.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.