American Vanguard Corp Q2 2025 Earnings Beat Expectations with EPS of $(0.03) and Revenue of $129 Million

American Vanguard Corp reported Q2 2025 EPS of $(0.03), beating estimates, and revenue of $129 million, surpassing expectations. The company achieved an 80% improvement in adjusted EBITDA, a 2% gross profit margin improvement, and reduced debt by $22 million. CEO Dak Kaye and CFO David Johnson attributed the progress to operational improvements and efficient capital management. The company is well-positioned to capitalize on the recovering agriculture market.

American Vanguard Corp (NYSE: AVD) reported its second-quarter 2025 earnings, which saw the company beat analyst estimates for both earnings per share (EPS) and revenue. The company's EPS came in at $(0.03), surpassing the consensus estimate of $-0.06, while revenue reached $129 million, exceeding the expected $133 million [1].

The company achieved significant operational improvements, with adjusted EBITDA increasing by 80% compared to the same period last year. Additionally, American Vanguard saw a 2% improvement in its gross profit margin to 31%, driven by enhancements in manufacturing and procurement processes [2].

CEO Dak Kaye and CFO David Johnson attributed the progress to operational efficiencies and strategic capital management. The company reduced its debt by $22 million, bringing the total to $189 million, and decreased inventory by $53 million to $191 million. This reduction in inventory was facilitated by an improved sales, inventory, and operations planning process (SIOP) [2].

The agriculture market appears to be in the early stages of recovery, with customer destocking beginning to subside. This positive trend, coupled with the company's operational improvements, positions American Vanguard to capitalize on the recovering market.

The company maintains its full-year 2025 revenue guidance of $535 million to $545 million and adjusted EBITDA guidance of $40 million to $44 million [2].

American Vanguard will host an earnings conference call on July 31, 2025, at 5 pm ET. The call can be accessed through the following link: https://www.webcaster4.com/Webcast/Page/3070/52784 [2].

References:

[1] https://za.investing.com/news/earnings/american-vanguard-earnings-beat-by-003-revenue-fell-short-of-estimates-3815247

[2] https://www.businesswire.com/news/home/20250731931127/en/American-Vanguard-Reports-Second-Quarter-2025-Results