Company Extends and Expands Its Credit Capacity Through the Establishment of Two Term Loans
Forecasts Adjusted EBITDA in a range of $44 - $48 million in 2026
Announces the Company will be rationalizing its Los Angeles manufacturing facility
NEWPORT BEACH, CA / ACCESS Newswire / March 16, 2026 / 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 financial year ended December 31, 2025.
Financial and Operational Highlights for 2025 - versus 20241:
Net sales of $515 million vs. $547 million;
GAAP net loss of $50 million vs $126 million;
Adjusted EBITDA2 of $39.2 million vs. $39.1 million;
The Company has entered in two new term loans agreements totaling $285 million
Dak Kaye, CEO of American Vanguard, stated "2025 was a pivotal year for American Vanguard as we continue to make progress on the execution of our business improvement plans. Initiatives that we implemented early last year have resulted in increased margins, in an agricultural economy that is just beginning to recover. While we have accomplished much in 2025, we expect even better results in 2026. We have made the difficult decision to significantly reduce activities at the Company's Los Angeles manufacturing facility. This is the Company's oldest facility, and in today's environment, is no longer competitive. We would like to thank our dedicated team members at this location. We will be assisting the affected employees as they transition to new opportunities. Further, savings will also be realized from the Company's previously announced move of the corporate headquarters from Newport Beach, California, scheduled for mid-2026."
Mr. Kaye continued, "We also have replaced our revolving credit facility with term loans from lenders led by Centerbridge Partners and BMO. This transaction meaningfully strengthens American Vanguard's capital structure and liquidity position. This financing extends our maturities, enhances balance-sheet flexibility, and positions the Company to remain focused on executing its strategic and operational priorities. We now intend to position American Vanguard for growth, with a portfolio of new products that will begin launching this year."
Mr. Kaye concluded, "The Company has also made personnel changes to the management of our commercial team, which I believe will reenergize this group. With new products and a renewed customer centric focus, there is an opportunity to meaningfully increase volumes, that will lead to improved efficiency in our factory operations, higher margins, and ultimately to higher future profitability. I expect the Company to generate adjusted EBITDA in a range of $44 - $48 million in 2026."
David Johnson, Chief Financial Officer stated, "I am pleased to see our business improvement plans begin to yield tangible results. Our 2025 gross profit margin and operating costs both improved as compared to 2024. These results are important given the backdrop of a continued weak overall agricultural market. As planned, we continued to wind down spending on our business improvement action plans. In 2026, we will continue to invest in business improvements including rationalization of some activity at the LA facility, which will result in short term cash and non-cash expenses followed by longer term factory operating efficiencies. Finally, I am particularly pleased to be able to report that the Company has fully remediated all of the material weaknesses identified in connection with the 2024 audit. I want to thank the entire global finance team and many other non-finance employees who have all worked together to achieve this result".
Mr. Johnson continued, "As we look forward to 2026, I feel that a lot of work has been done to improve the Company's organization, approach to new product introductions, operations and capital structure. Further, we will continue to focus on using technology to improve our business by completing the global implementation of our standard ERP platform. These actions will allow the Company to grow as the global Ag Chem market continues to improve."
Earnings Conference Call
The Company will be hosting an earnings conference call at March 16, 2026 at 4:30 pm Eastern Time/1:30 pm Pacific Time.
The conference call can be accessed through the following link: https://www.webcaster5.com/Webcast/Page/3070/53740
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.
Non-GAAP Financial Measures
In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP), we present Adjusted EBITDA, which is a non-GAAP financial measure. This measure should not be considered in isolation or as an alternative to GAAP measures such as net income, or diluted earnings per share, as applicable, or other financial statement data presented in our financial statements as an indicator of our financial performance or liquidity.
We define EBITDA as net income or net income attributable to the Company, adjusted for non-controlling interests, depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for certain items management believes are not reflective of the underlying operations of our business, including but not limited to the exclusion of charges that are considered by management to be unusual and not representative of the company's underlying performance and future prospects. In 2025 and 2024 that included non-recurring expenses and the profit on sale of an asset that was not held for sale. The resulting Adjusted EBITDA measure is aligned with the Company's metric for its credit facility agreement in the applicable periods.
We use Adjusted EBITDA to assess the operating results and effectiveness and efficiency of our business. We present this non-GAAP financial measure because we believe that investors consider Adjusted EBITDA to be an important supplemental measure of performance, and we believe that this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. As the Company continues to work through its transformation efforts, management believes that presenting Adjusted EBITDA provides an effective comparison between the Company and its industry peers. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
The Company is not able to provide a reconciliation without unreasonable efforts of its forward-looking guidance related to adjusted EBITDA to the most directly comparable GAAP financial measure due to the inherent difficulty in predicting with reasonable certainty the timing and amount of certain items that are excluded from Adjusted EBITDA, such as share-based compensation, acquisition-related expenses, and foreign exchange gains or losses, which could be material to the Company's results computed in accordance with GAAP.
Investor Representative
Alpha IR Group
Robert Winters
[email protected]
(929) 266-6315
CONSOLIDATED BALANCE SHEETS
December 31, 2025 and 2024
(In thousands, except share data)
2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 12,425 | $ | 12,514 | ||||
| Receivables: | ||||||||
| Trade, net of allowance for credit losses of $11,733 and $9,190 respectively | 160,511 | 169,743 | ||||||
| Other | 7,278 | 4,699 | ||||||
| Total receivables, net | 167,789 | 174,442 | ||||||
| Inventories | 176,034 | 179,292 | ||||||
| Prepaid expenses and other assets | 9,668 | 7,615 | ||||||
| Income taxes receivable | 4,606 | 5,030 | ||||||
| Total current assets | 370,522 | 378,893 | ||||||
| Property, plant and equipment, net | 53,036 | 58,169 | ||||||
| Operating lease right-of-use assets, net | 16,793 | 19,735 | ||||||
| Intangible assets, net | 138,746 | 150,497 | ||||||
| Goodwill | - | 19,701 | ||||||
| Deferred income tax assets | 2,637 | 1,242 | ||||||
| Other assets | 14,803 | 8,484 | ||||||
| Total assets | $ | 596,537 | $ | 636,721 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 87,505 | $ | 69,159 | ||||
| Customer prepayments | 33,094 | 52,675 | ||||||
| Accrued program costs | 52,227 | 69,449 | ||||||
| Accrued expenses and other payables | 28,261 | 31,989 | ||||||
| Operating lease liabilities, current | 5,765 | 6,136 | ||||||
| Income taxes payable | 2,594 | 2,942 | ||||||
| Total current liabilities | 209,446 | 232,350 | ||||||
| Long-term debt | 174,000 | 147,332 | ||||||
| Operating lease liabilities, long-term | 11,621 | 14,339 | ||||||
| Deferred income tax liabilities | 8,150 | 7,989 | ||||||
| Other liabilities | 923 | 1,601 | ||||||
| Total liabilities | 404,140 | 403,611 | ||||||
| Commitments and contingent liabilities (Notes 5 and 10) | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.10 par value per share; authorized 400,000 shares; none issued | - | - | ||||||
| Common stock, $0.10 par value per share; authorized 40,000,000 shares; issued 34,923,562 shares in 2025 and 34,794,548 shares in 2024 | 3,492 | 3,479 | ||||||
| Additional paid-in capital | 117,106 | 114,679 | ||||||
| Accumulated other comprehensive loss | (12,000 | ) | (18,729 | ) | ||||
| Retained earnings | 155,000 | 204,882 | ||||||
263,598 | 304,311 | |||||||
| Less treasury stock at cost, 5,915,182 shares in 2025 and 5,915,182 in 2024 | (71,201 | ) | (71,201 | ) | ||||
| Total stockholders' equity | 192,397 | 233,110 | ||||||
| Total liabilities and stockholders' equity | $ | 596,537 | $ | 636,721 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended December 31, 2025, 2024 and 2023
(In thousands, except per share data)
2025 | 2024 | 2023 | ||||||||||
| Net sales | $ | 515,114 | $ | 547,306 | $ | 579,371 | ||||||
| Cost of sales | (367,553 | ) | (426,989 | ) | (400,207 | ) | ||||||
| Gross profit | 147,561 | 120,317 | 179,164 | |||||||||
| Operating expenses | ||||||||||||
| Selling, general and administrative | (110,633 | ) | (119,634 | ) | (116,887 | ) | ||||||
| Research, product development and regulatory | (23,161 | ) | (32,662 | ) | (38,025 | ) | ||||||
| Product liability claims | (9,730 | ) | - | - | ||||||||
| Transformation | (7,187 | ) | (20,162 | ) | (957 | ) | ||||||
| Asset impairments | (25,395 | ) | (50,414 | ) | - | |||||||
| Gain from sale of assets | 249 | 1,000 | - | |||||||||
| Operating (loss) income | (28,296 | ) | (101,555 | ) | 23,295 | |||||||
| Change in fair value of equity investments, net | (437 | ) | (2,356 | ) | (359 | ) | ||||||
| Interest and other expenses, net | (18,470 | ) | (16,547 | ) | (12,639 | ) | ||||||
| (Loss) income before provision for income taxes | (47,203 | ) | (120,458 | ) | 10,297 | |||||||
| Provision for income taxes | (2,679 | ) | (5,882 | ) | (2,778 | ) | ||||||
| Net (loss) income | $ | (49,882 | ) | $ | (126,340 | ) | $ | 7,519 | ||||
| (Losses) earnings per common share-basic | $ | (1.75 | ) | $ | (4.50 | ) | $ | 0.27 | ||||
| (Losses) earnings per common share-assuming dilution | $ | (1.75 | ) | $ | (4.50 | ) | $ | 0.26 | ||||
| Weighted average shares outstanding-basic | 28,426 | 28,059 | 28,128 | |||||||||
| Weighted average shares outstanding-assuming dilution | 28,426 | 28,059 | 28,533 | |||||||||
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
ANALYSIS OF SALES
(In thousands)
2025 | 2024 | $ Change | % Change | |||||||||||||
| Net sales: | ||||||||||||||||
| U.S. crop | $ | 221,391 | $ | 228,327 | $ | (6,936 | ) | -3 | % | |||||||
| U.S. non-crop | 90,290 | 82,400 | 7,890 | 10 | % | |||||||||||
| Total U.S. | 311,681 | 310,727 | 954 | 0 | % | |||||||||||
| International | 203,433 | 236,579 | (33,146 | ) | -14 | % | ||||||||||
| Total net sales | $ | 515,114 | $ | 547,306 | $ | (32,192 | ) | -6 | % | |||||||
| Total cost of sales | $ | (367,553 | ) | $ | (426,989 | ) | $ | 59,436 | -14 | % | ||||||
| Total gross profit | $ | 147,561 | $ | 120,317 | $ | 27,244 | 23 | % | ||||||||
| Total gross margin | 29 | % | 22 | % | ||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2025, 2024 and 2023
(In thousands)
2025 | 2024 | 2023 | ||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net (loss) income | $ | (49,882 | ) | $ | (126,340 | ) | $ | 7,519 | ||||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||
| Depreciation and amortization of property, plant and equipment and intangible assets | 18,742 | 22,322 | 21,780 | |||||||||
| Amortization of other long-term assets | 21 | 226 | 1,754 | |||||||||
| Amortization of deferred loan fees | 1,906 | 536 | 254 | |||||||||
| Gain on disposal of property, plant and equipment | (75 | ) | (1,000 | ) | - | |||||||
| Impairment of assets | 25,395 | 50,414 | - | |||||||||
| Provision for estimated credit losses | 2,360 | 2,319 | 1,935 | |||||||||
| Stock-based compensation | 2,016 | 4,412 | 6,138 | |||||||||
| Deferred income taxes | (1,351 | ) | 1,452 | (9,710 | ) | |||||||
| Changes in liabilities for uncertain tax positions or unrecognized tax benefits | (201 | ) | (1,547 | ) | (508 | ) | ||||||
| Change in equity investment fair value | 437 | 2,356 | 359 | |||||||||
| Lease obligations and non-cash lease expense, net | (147 | ) | (37 | ) | 256 | |||||||
| Unrealized foreign currency transaction (gains) losses | (193 | ) | 804 | (581 | ) | |||||||
| Changes in assets and liabilities associated with operations, net of business combinations: | ||||||||||||
| Decrease (increase) in receivables | 7,697 | 7,481 | (20,278 | ) | ||||||||
| Decrease (increase) in inventories | 6,287 | 35,178 | (27,315 | ) | ||||||||
| Decrease (increase) in income tax receivable/payable | (9 | ) | (3,775 | ) | 3,568 | |||||||
| (Increase) decrease in prepaid expenses and other assets | (8,638 | ) | (687 | ) | 1,269 | |||||||
| Increase (decrease) in accounts payable | 15,434 | 3,714 | (2,287 | ) | ||||||||
| Decrease in customer prepayments | (19,582 | ) | (12,882 | ) | (45,079 | ) | ||||||
| (Decrease) increase in accrued program costs | (17,384 | ) | 1,775 | 7,244 | ||||||||
| (Decrease) increase in accrued expenses and other payables | (4,024 | ) | 17,202 | (5,066 | ) | |||||||
| Net cash (used in) provided by operating activities | (21,191 | ) | 3,923 | (58,748 | ) | |||||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (3,919 | ) | (7,279 | ) | (11,878 | ) | ||||||
| Proceeds from disposal of property, plant and equipment | 477 | 1,065 | 242 | |||||||||
| Acquisitions of business and product line, net of cash acquired | - | - | (5,195 | ) | ||||||||
| Intangible assets | (165 | ) | (409 | ) | (186 | ) | ||||||
| Net cash used in investing activities | (3,607 | ) | (6,623 | ) | (17,017 | ) | ||||||
| Cash flows from financing activities: | ||||||||||||
| Payments under line of credit agreement | (223,465 | ) | (294,356 | ) | (172,500 | ) | ||||||
| Borrowings under line of credit agreement | 250,134 | 302,787 | 259,100 | |||||||||
| Payment of deferred loan fees | (3,389 | ) | (850 | ) | - | |||||||
| Net receipt from the issuance of common stock under ESPP | 629 | 901 | 981 | |||||||||
| Net (payment) receipt from the exercise of stock options | (205 | ) | - | 46 | ||||||||
| Payment from common stock purchased for tax withholding | - | (1,432 | ) | (1,967 | ) | |||||||
| Repurchase of common stock | - | - | (15,539 | ) | ||||||||
| Payment of cash dividends | - | (2,510 | ) | (3,384 | ) | |||||||
| Net cash provided by financing activities | 23,704 | 4,540 | 66,737 | |||||||||
| Net increase (decrease) in cash | (1,094 | ) | 1,840 | (9,028 | ) | |||||||
| Effect of exchange rate changes on cash | 1,005 | (742 | ) | 116 | ||||||||
| Cash at beginning of year | 12,514 | 11,416 | 20,328 | |||||||||
| Cash at end of year | $ | 12,425 | $ | 12,514 | $ | 11,416 | ||||||
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO EBITDA
For the years ended December 31, 2025 and 2024
For the years ended December 31, | ||||||||
2025 | 2024 | |||||||
| Net income | $ | (49,882 | ) | $ | (126,340 | ) | ||
| Provision for income taxes | 2,679 | 5,882 | ||||||
| Interest expense, net | 18,470 | 16,243 | ||||||
| Depreciation and amortization | 18,763 | 22,548 | ||||||
| Stock compensation expense | 2,016 | 4,412 | ||||||
| Gain on sale of fixed assets | (249 | ) | (1,000 | ) | ||||
| Transformation costs | 7,187 | 20,162 | ||||||
| Other one-time charges | 3,907 | 60,799 | ||||||
| Goodwill and intangibles asset impairments | 25,300 | 36,395 | ||||||
| Product liability claims | 10,485 | - | ||||||
| Other adjustments | 531 | - | ||||||
| Adjusted EBITDA1 | $ | 39,207 | $ | 39,101 | ||||
1 2024 GAAP figures include adjustments related to a product recall.
2 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 (loss) income, operating (loss) income 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.
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 (loss) income, operating (loss) income 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