Latest news with #AVD
Globe and Mail
02-08-2025
- Business
- Globe and Mail
American Vanguard (AVD) Q2 Loss Down 93%
Key Points GAAP EPS of $(0.03) for Q2 2025 beat expectations, narrowing GAAP losses from $(0.42) in Q2 2024. Revenue (GAAP) reached $129.3 million, exceeding consensus estimates and increasing 1% year-over-year. These 10 stocks could mint the next wave of millionaires › American Vanguard (NYSE:AVD), a specialty and agricultural chemicals producer with a growing global footprint, released its earnings for the second quarter of fiscal 2025 on August 1, 2025. The company reported a GAAP earnings per share (EPS) loss of $(0.03), which surpassed analyst GAAP estimates of $(0.11). Revenue (GAAP) came in at $129.3 million, topping GAAP forecasts of $125.0 million and slightly up from $128.2 million in GAAP net sales in Q2 2024. Key achievements for the quarter included strong gains in adjusted EBITDA, an expansion in gross profit margins to 31% from 29% in Q2 2024, and continued reductions in operating expenses and debt. The results marked an early turnaround from the prior year's losses, as American Vanguard reported GAAP EPS of $(0.03) compared to $(0.42) in Q2 2024, though Continued net losses (GAAP) and restrained top-line growth in the first half of 2025 highlight that challenges remain. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) ($0.03) ($0.11) ($0.42) N/A Revenue (GAAP) $129.3 million $125.0 million $128.2 million 1% Adjusted EBITDA $11.0 million $6.2 million 77% Gross Profit Margin 31% 29% 2 pp Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Company Overview and Focus American Vanguard is a North America–based manufacturer specializing in crop protection chemicals, including insecticides, herbicides, and soil fumigants for agriculture and turf. Its product portfolio also extends to environmental products and biological solutions, serving customers in the United States and over 40 international markets. In recent years, the company's strategy has centered on innovation—especially 'green' chemistry, regulatory compliance, and expanding its global presence. American Vanguard's performance relies on its ability to develop new formulations, execute cost discipline, comply with evolving regulations, and differentiate its offerings in niche markets. Quarterly Performance: Recovery in Progress Financial results for the period showed tangible progress in operational improvement. GAAP EPS came in well ahead of estimates, narrowing the quarterly net loss (GAAP) to $0.85 million from $11.7 million in the prior-year quarter. While overall sales (GAAP) grew 1%, this reversed the declines of earlier quarters and indicated an easing of the customer destocking cycle. Segment results showed U.S. crop sales rose 1% to $52.7 million (GAAP). Management noted, 'Customer destocking is beginning to subside. Against this backdrop, we were able to increase revenue by approximately 1% year-over-year (GAAP).' The top-line result masked a much stronger recovery in profitability. Adjusted EBITDA, a measure of core operating performance that excludes unusual items, climbed to $11.0 million from $6.2 million year-over-year. The gross profit margin—calculated as gross profit divided by revenue—jumped two percentage points year-over-year to 31% (GAAP). The improvement in gross profit margin came despite flat sales and reflected both lower cost of goods sold and improvements in manufacturing and procurement processes (GAAP). Gross profit itself rose 7% year-over-year on a GAAP basis, assisted by a 2% reduction in cost of sales year-over-year. Cost discipline underpinned these gains. Selling, general, and administrative (SG&A) expense (GAAP) dropped to $28.8 million from $31.1 million. Research, product development, and regulatory costs were also sharply lower at $5.8 million, reflecting reduced spending on transformation initiatives. One-time transformation charges, tied to restructuring efforts, fell to $1.6 million from $7.3 million year-over-year. As a result, operating income improved from a loss of $9.2 million in Q2 2024 to a gain of $4.4 million. Balance sheet trends showed continued focus on liquidity and working capital management. Inventory at the end of Q2 2025 was $191 million, representing a $53 million reduction from a year earlier. Debt outstanding also fell $22 million compared to last year to $189 million at quarter-end. The company highlighted its ongoing plan to use free cash flow primarily to reduce debt going forward. Within its product portfolio, metam sodium (a soil fumigant) and Thimet (a soil insecticide for peanuts and corn) were called out as bright spots. Prior headwinds such as the withdrawal of Dacthal (previously used in certain crops), weaker demand in the agave market in Mexico, and drought in Australia weighed on international results, but did not deepen in the period. There was no material commentary on new product launches for the quarter, though management emphasized an ongoing shift toward differentiated and sustainable solutions. No significant regulatory or compliance events were noted, though costs in this area remain a structural consideration. Cash used in operations for the six months ended June 30, 2025 stood at $39.8 million, an improvement from $49.4 million in the same period of 2024. The company did not announce any dividend changes for the quarter and did not specify a current payout. AVD does not currently pay a dividend. Guidance and Looking Ahead American Vanguard's management reaffirmed its full-year guidance, despite earlier reductions to estimates in the first quarter. For FY2025, the company expects revenue of $535–$545 million (GAAP), and adjusted EBITDA guidance of $40–$44 million for the full year 2025 (non-GAAP). This outlook reflects ongoing caution about the pace of agricultural recovery and the persistence of competitive market dynamics. Leadership continues to focus on cost control, inventory reduction, and margin improvement. Management stated, 'the agriculture economy appears to be in the early stages of a recovery.' Investors will want to monitor revenue trajectory, progress on restoring sustained profitability, and execution on debt reduction in the coming quarters. No new quantitative guidance was issued for dividends or other near-term capital allocation initiatives. Persistent net losses and modest top-line growth remain areas for close scrutiny as the turnaround progresses. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. 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Globe and Mail
30-07-2025
- Business
- Globe and Mail
American Vanguard Announces Date of Second Quarter 2025 Earnings Release and Webcast Conference Call
American Vanguard ® Corporation (NYSE: AVD) announced today it will release financial results for the second quarter of 2025 on Thursday, July 31, 2025, after the market closes. The company will conduct a conference call focusing on operating performance and financial results at 5:00 p.m. ET / 2:00 p.m. PT on Thursday, July 31, 2025. The conference call will be webcast live, available in the Investors section of the Company's website at or through the following link: If you are unable to listen live, the conference call will be archived on the Company's website: 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 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.
Yahoo
08-06-2025
- Business
- Yahoo
American Vanguard Corp (AVD) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Net Sales: $115 million in Q1 2025, down from $135 million in Q1 2024. Adjusted EBITDA: $3 million in Q1 2025, compared to $15.5 million in Q1 2024. Operating Expenses: Decreased by $5 million compared to the previous year. Net Trade Working Capital: Reduced by $86 million compared to the previous year. Gross Profit Margin: Declined to 26% in Q1 2025 from 31% in Q1 2024. Debt: Approximately $20 million lower than the previous year, a 14% decrease. Metam Sales: Increased by 14% in Q1 2025 compared to the previous year. Diamond Sales: Increased by 17% due to higher peanut acreage. Revenue Guidance for 2025: Adjusted to $535 million to $545 million. Adjusted EBITDA Guidance for 2025: Revised to $40 million to $44 million. CapEx for 2025: Expected to be in the range of $8 million to $9 million. Warning! GuruFocus has detected 7 Warning Signs with AVD. Release Date: June 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Operating expenses dropped by $5 million in Q1 2025 compared to the previous year. Net trade working capital improved by $86 million compared to the previous year. Metam sales increased by 14% in the quarter, indicating strong market demand. Diamond sales rose by 17%, driven by increased peanut acreage. The company is focused on cost containment and improving net working capital, which should lead to higher returns. Net sales decreased to $115 million from $135 million in the year-ago period. Adjusted EBITDA fell to $3 million from $15.5 million in the previous year. Continued destocking in Q1 2025 affected sales and inventory levels. The absence of a previously canceled product and weakness in the Mexican agave market impacted revenue. Gross profit margin declined to 26% from 31% due to a weaker pricing environment and lower volume. Q: Can you elaborate on the year-over-year top-line performance and the impact of destocking? A: Douglas Kaye, CEO, explained that the destocking continued through April, reaching historical lows. The destocking was more prolonged than initially anticipated, but positive sales trends were observed in May and June. The destocking appears to have bottomed out, but it's uncertain if inventory levels will be rebuilt. Q: What was the impact of the Dacthal product removal on first-quarter results? A: David Johnson, CFO, stated that Dacthal's removal resulted in a $6 million reduction in top-line revenue with a 3.5% gross margin impact. The absence of Dacthal, along with other factors like the Mexican agave market weakness and Australian drought, contributed to the year-over-year decline. Q: How does the shift in corn acreage affect your product portfolio? A: Douglas Kaye, CEO, noted that the USDA projects an increase in corn acres over soybeans. This shift benefits American Vanguard as their portfolio, particularly corn and soil insecticides, aligns well with corn acreage, leading to increased sales in that segment. Q: What are your expectations for cash taxes in 2025? A: David Johnson, CFO, indicated that cash taxes are expected to be in the $4 million to $5 million range, primarily due to international obligations. The tax situation remains challenging. Q: Can you provide more details on the competitive pricing environment and its impact? A: Douglas Kaye, CEO, explained that the competitive pricing environment in Q1 was unusual, driven by market-wide declines and competition for customer inventory space. While there was pressure on specific products like Folex, the company expects improvement due to their US-based production advantage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Melden Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
06-06-2025
- Business
- Yahoo
American Vanguard: Q1 Earnings Snapshot
NEWPORT BEACH, Calif. (AP) — NEWPORT BEACH, Calif. (AP) — American Vanguard Corp. (AVD) on Friday reported a first-quarter loss of $8.5 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Newport Beach, California-based company said it had a loss of 30 cents. Losses, adjusted for non-recurring costs, came to 24 cents per share. The agricultural products company posted revenue of $115.8 million in the period. The company's shares closed at $4.86. A year ago, they were trading at $8.75. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on AVD at Sign in to access your portfolio
Washington Post
06-06-2025
- Business
- Washington Post
American Vanguard: Q1 Earnings Snapshot
NEWPORT BEACH, Calif. — NEWPORT BEACH, Calif. — American Vanguard Corp. (AVD) on Friday reported a first-quarter loss of $8.5 million, after reporting a profit in the same period a year earlier. On a per-share basis, the Newport Beach, California-based company said it had a loss of 30 cents. Losses, adjusted for non-recurring costs, came to 24 cents per share.
