American Vanguard — Second Quarter 2026 Earnings Summary

Financial Performance

• Second quarter net sales were $117 million, a decrease from $129 million in the second quarter of 2025.
• First-half net sales were $240 million, a decrease from $245 million in the first half of 2025.
• Second quarter gross profit margin was 30%, compared to 31% in the prior year period.
• First-half gross profit margin was 30%, an improvement from 29% in the prior year period.
• Second quarter operating loss was $0.30 million, compared to operating income of $4.4 million in the prior year period.
• First-half operating profit was $1.6 million, compared to $0.06 million in the prior year period.
• Second quarter net loss was $9.9 million, compared to a net loss of $849 thousand in the prior year period.
• First-half net loss was $14 million, compared to a net loss of $9.3 million in the prior year period.
• Second quarter Adjusted EBITDA was $6.6 million, a decrease from $11.0 million in the prior year period.
• First-half Adjusted EBITDA was $16.9 million, an increase from $14 million in the prior year period.
• Second quarter EPS was ($0.34), compared to ($0.03) in the prior year period.
• First-half EPS was ($0.49), compared to ($0.33) in the prior year period.
• Cash increased to $43.9 million at June 30, 2026, from $12.4 million at December 31, 2025.
• Total debt increased to $267.6 million (current portion $2.3 million + long-term $265.4 million) at June 30, 2026, from $174 million at December 31, 2025.
• Inventories decreased by $10 million year-over-year.
• Operating expenses were reduced by 3% year-over-year in the second quarter.
• R&D investment increased by 12% year-over-year in the second quarter.

Guidance and Future Outlook

• The company reaffirmed its full-year outlook for Adjusted EBITDA of $44 million to $48 million.
• The company reaffirmed its full-year outlook for sales of $530 million to $550 million.
• Management expects the rationalization of the L.A. production facility to save at least $4 million on an annualized basis going forward.
• Management anticipates that actions taken in the first half, including the L.A. plant optimization and headquarters relocation, will translate into lower costs in the second half of the year.

Business Segments and Product Lines

• U.S. crop sales decreased 9% in the second quarter to $48 million.
• U.S. Specialty sales increased 11% in the second quarter to $22 million.
• International sales decreased 18% in the second quarter to $47 million.
• U.S. crop sales increased 5% in the first half to $115 million.
• U.S. Specialty sales increased 10% in the first half to $38 million.
• International sales decreased 13% in the first half to $87 million.
• Total U.S. sales decreased 3% in the second quarter to $70 million.
• Total U.S. sales increased 6% in the first half to $153 million.
• The company is accelerating new product development and introduction.

Market and Competitive Landscape

• Distributors, retailers, and growers remain conservative in buying practices, ordering on an as-needed basis and deferring purchases.
• Order patterns have shifted across domestic and international businesses due to customer buying behaviors.
• The company reports beginning to outperform competition in its most important market, the U.S.
• The company has more than 1,000 product registrations worldwide.

Risks and Challenges

• Ongoing and dynamic crosscurrents are affecting agricultural markets and customers globally.
• Customers are deferring purchases month-to-month where possible.
• Net cash used in operating activities was $60.5 million for the first half of 2026, compared to $39.8 million in the prior year period.
• Significant decrease in customer prepayments of $32.4 million in the first half of 2026.
• Increase in net receivables of $16.2 million in the first half of 2026.

Management Commentary and Tone

• CEO Dak Kaye stated results demonstrate steady progress on lowering costs and inventories and driving commercial improvement despite market crosscurrents.
• Management is focused on managing working capital, factory efficiency, and controllable expenses while investing in the future.
• Management is reorganizing, refocusing, and invigorating the commercial effort across the Company.
• CFO David Johnson noted that first-half margin improved 100 basis points on slightly lower sales due to business improvement plan efforts.
• Management expressed excitement about building on the opportunity to spread U.S. outperformance across the rest of the businesses.

Other Key Points

• The company hosted an earnings conference call on August 10, 2026.
• The company is a diversified specialty and agricultural products company developing, manufacturing, and marketing solutions for crop protection, nutrition, turf, ornamental management, and commercial pest control.
• The company has expanded operations over the past 20 years through product and business acquisitions.
• Net cash provided by financing activities was $94.4 million in the first half of 2026, driven by borrowings under the line of credit and term loans.
• Capital expenditures were $2.3 million in the first half of 2026.