- **Positive Q3 EBITDA**: First positive quarter ($244K) despite $5.5M-$7M revenue hit from China tariffs.
- **Long-Term Sorghum Growth**: 10%-12% market share target for Double Team, with potential $70M-$78M in traded sales by FY2033.
- **International Expansion**: Partnering with seed companies for low-capital trait introgression, with ADAMA advancing herbicide registrations.
- **Strategic Review**: Ongoing evaluation of alternatives to enhance shareholder value amid macro uncertainty.

**【CEO Summary Section】**
- **Strategic Restructuring**: Exited Australian operations, secured $25M working capital facility, and implemented cost-saving initiatives, leading to improved gross margins and reduced operating expenses.
- **Q3 Performance**: Achieved first positive adjusted EBITDA ($244K) in many years, despite $5.5M-$7M revenue impact from China tariffs. Double Team market share target remains 10%-12% for FY25.
- **Tariff Impact**: China's retaliatory tariffs caused US sorghum exports to drop, leading to oversupply and lower farm gate prices. However, long-term optimism persists due to sorghum's health benefits and adoption of high-margin traits.
- **Product Pipeline**: Launched Prussic Acid Free sorghum (sold out) and planning DT2 Grain Sorghum launch in FY28. International expansion via partnerships (e.g., ADAMA) is progressing, though registration and trait introgression take 1.5-2.5 years.
- **Strategic Review**: Board evaluating alternatives to enhance shareholder value, with focus on operational efficiency and trait commercialization.

**【CFO Financial Commentary】**
- **Q3 Financials**: Revenue $9.5M (flat vs FY24), gross margin 37.7% (vs 24.6%), driven by operational efficiencies. Americas sorghum revenue $7.1M (up 1.4%), Double Team $3.3M (down 3%).
- **Revised FY25 Guidance**: Revenue $29M-$31M (vs $34.5M-$38M), adj. EBITDA -$8.5M to -$7M. Key impacts: $4M lower Double Team sales, $1M lower conventional sorghum in Mexico, and $750K in other line items.
- **Cost Management**: Operating expenses $4.3M (down 22% YoY), with $16.5M annualized adjusted expenses. Working capital improved ($16.9M inventory vs $22.6M last year), with $1.6M borrowing base availability.
- **Liquidity**: $1M spent on VA process, with focus on curtailed spending and strategic review support from Rabobank and Mountain Ridge.

**【Q&A Key Highlights】**
- **Tariff Developments**: CEO expects China to resume sorghum imports post-90-day pause, but timing uncertain. Farmers' planting decisions hinge on near-term price corrections.
- **Strategic Review Update**: Process ongoing, with interest from parties focused on sorghum's long-term potential. No notable changes due to market uncertainty.
- **International Expansion**: Partnering with established seed companies for low-capital trait introgression. ADAMA advancing herbicide registrations globally.
- **SAF/Camelina Update**: VBO demonstrating herbicide-resistant camelina technology, with focus on ultra-low carbon fuels. Trials ongoing, but commercialization gradual.

S&W Seed Company (SANW) Q3 2025 Earnings Call Transcript

Pioneer Product Sales

Other Product Sales

Services

Seed Sales

United States

Australia

Saudi Arabia

Pakistan

South Africa

Mexico

China

Libya

Other

Sudan

Egypt

Argentina

Canada

Algeria

Uruguay

Jordan

Uganda

Morocco

Qatar

Bolivia

Japan

SANW(Delisted)

SANW fundamentals

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