American Vanguard 2025 Q3 Earnings 52.7% Loss Reduction and 350% EBITDA Surge

American Vanguard (AVD) reported fiscal 2025 Q3 results on November 10, 2025, missing revenue and net income estimates but reaffirming full-year EBITDA guidance. The company narrowed losses by 52.7% to $0.43 per share and cut its net loss by 52.0% to $-12.36 million, while adjusted EBITDA surged 350% to $8.2 million.

Revenue

Total revenue rose 0.9% year-over-year to $119.31 million, driven by a 22% increase in U.S. Crop sales to $43.31 million. However, U.S. Non-Crop revenue declined 14% to $19.23 million, and International sales fell 6% to $56.77 million, impacted by strategic product discontinuations in Brazil and adverse weather in Australia.

Earnings/Net Income

The company reduced its per-share loss to $0.43 from $0.91, reflecting improved cost controls and margin expansion. Net losses narrowed to $-12.36 million, a 52.0% improvement over 2024 Q3. The EPS reduction underscores enhanced operational efficiency and cost-cutting measures.

Post-Earnings Price Action Review

Shares edged up 1.20% in the latest trading day, rebounded 8.35% weekly, but fell 3.80% month-to-date. Pre-market trading saw a 7.06% drop after missing revenue and net income estimates, though management’s guidance for a stronger fourth quarter and $40–44 million in adjusted EBITDA for 2025 stabilized investor sentiment.

CEO Commentary

CEO Douglas Kaye highlighted a 350% EBITDA jump to $8.2 million, driven by 300-basis-point margin gains, $6 million in cost savings, and production shifts to Alabama. He emphasized a cultural shift toward expense control and rebranding the “non-crop” segment as “Specialty,” reflecting innovation in pest control and lawn care. Kaye remains confident in achieving $40–44 million in 2025 EBITDA and a stronger 2026 outlook.

Guidance

American Vanguard maintains full-year 2025 adjusted EBITDA guidance of $40–44 million and expects Q4 to generate material free cash flow for debt reduction.

Additional News

1. Product Liability Recovery: A $7.6 million charge for contamination claims, expected to be recouped from third-party insurers, was recorded in Q3.

2. Strategic Rebranding: The “non-crop” segment will be renamed “Specialty” to highlight innovation in pest control and lawn care, aligning terminology with industry peers.

3. Geographic Expansion: Management outlined plans for a $100 million growth portfolio through new crop sectors and international markets, aiming to boost net sales over the medium term.