American Vanguard Q2 adj. EBITDA at $11mln, up from $6mln YoY.

Friday, Aug 1, 2025 4:27 pm ET1min read
AVD--

• American Vanguard reported Q2 2025 net sales of $129 million, up from $128 million in Q2 2024. • Adjusted EBITDA for Q2 2025 was $11 million, up from $6 million in Q2 2024. • Gross profit margin improved to 31% in Q2 2025 compared to 29% in Q2 2024. • The company reiterated its 2025 revenue and EBITDA guidance.

American Vanguard (AVD) reported its fiscal 2025 Q2 earnings on July 31st, 2025, showcasing significant improvements in its financial performance. The company's net sales reached $129 million, marking a 1% increase from the previous year's $128 million in Q2 2024 [1]. Adjusted EBITDA nearly doubled to $11 million, up from $6 million in Q2 2024, highlighting robust operational performance [1]. The gross profit margin also improved to 31% from 29% in Q2 2024, reflecting enhanced manufacturing and procurement processes [1].

The company's CEO, Dak Kay, expressed satisfaction with the substantial improvement in adjusted EBITDA and attributed this success to operational efficiencies stemming from the company's business transformation. Kay also noted the early stages of recovery in the agricultural economy, with a reduction in customer destocking, and an increase in the gross profit margin to 31% [1].

American Vanguard reaffirmed its full-year 2025 revenue guidance of $535 million to $545 million and adjusted EBITDA expectations between $40 million and $44 million [1]. The company's CFO, David Johnson, mentioned plans to allocate free cash flow towards debt reduction and maintain a strong balance sheet [1].

Despite the positive earnings report, American Vanguard's stock experienced a minor decrease in aftermarket trading, with a 0.3% decline. The stock is currently trading 61% below its 52-week high of $9.62, while maintaining a beta of 1.22, indicating higher volatility than the broader market [2]. The company's forward-looking strategies and robust financial management position it well for future success.

References:
[1] https://www.ainvest.com/news/american-vanguard-2025-q2-earnings-significant-net-loss-reduction-2508/
[2] https://za.investing.com/news/transcripts/earnings-call-transcript-american-vanguard-sees-strong-q2-2025-growth-93CH-3815297

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