American Vanguard — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for the third quarter ended September 30, 2026, were $108.4 million, a 9% decrease from $119.3 million in the same period in 2025.
• Gross profit margin declined to 24% in the third quarter 2026, compared to 29% in the third quarter 2025.
• Operating loss for the third quarter was $8.0 million, widening from an operating loss of $6.5 million in the prior year period.
• Net loss for the third quarter was $17.7 million, compared to a net loss of $12.4 million in the third quarter 2025.
• Adjusted EBITDA for the third quarter was breakeven, compared to $8.3 million in the third quarter 2025.
• Earnings per share (EPS) was ($0.61) for the third quarter 2026, compared to ($0.43) in the third quarter 2025.
• For the nine months ended September 30, 2026, net sales were $348.7 million, down 4% from $364.4 million in the prior year period.
• Net loss for the nine months ended September 30, 2026, was $31.7 million, compared to $21.7 million in the prior year period.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $16.8 million, down from $22.2 million in the prior year period.
• Cash and cash equivalents increased to $83.9 million at September 30, 2026, from $12.4 million at December 31, 2025.
• Long-term debt increased to $263.9 million at September 30, 2026, from $174.0 million at December 31, 2025.
• Customer prepayments increased to $44.6 million at September 30, 2026, from $33.1 million at December 31, 2025.
• Net trade working capital improved by $22 million, or 14%, versus the prior year period.
• Pre-payments increased by 44% year-over-year.

Guidance and Future Outlook:

• Full-year 2026 Adjusted EBITDA guidance was revised to a range of $36 million to $40 million.
• Full-year 2026 sales guidance was revised to a range of $500 million to $530 million.
• The company aims to drive $100 million in annualized revenue from new products by 2030.
• Management anticipates higher pre-payments will bode well for revenue in the 2027 planting season.

Business Segments and Product Lines:

• U.S. Crop segment sales for the third quarter were $42.3 million, a 2% decrease from $43.3 million in the prior year period.
• U.S. Specialty segment sales for the third quarter were $18.9 million, a 2% decrease from $19.2 million in the prior year period.
• Total U.S. sales for the third quarter were $61.2 million, a 2% decrease from $62.5 million in the prior year period.
• International sales for the third quarter were $47.2 million, a 17% decrease from $56.8 million in the prior year period.
• For the nine months ended September 30, 2026, U.S. Crop sales were $157.5 million, up 3% from $153.5 million in the prior year period.
• For the nine months ended September 30, 2026, U.S. Specialty sales were $57.0 million, up 6% from $54.1 million in the prior year period.
• For the nine months ended September 30, 2026, International sales were $134.1 million, down 14% from $156.8 million in the prior year period.
• The company acquired four U.S. brands and registrations from Syngenta at the end of the third quarter.
• The company entered into a distribution agreement with Sipcam Agro.
• The company rationalized its Los Angeles facility and relocated its headquarters in the first half of the year.
• Matt Horwath was appointed Chief Financial Officer.
• Hermann Castro was appointed Senior Vice President of Marketing and Business Development.
• Mark Helt was appointed President of U.S. Crop.

Market and Competitive Landscape:

• El Niño conditions materially impacted the business outside the U.S.
• The company continues to outperform peers in the U.S. market despite a challenging environment.
• Instability in the Middle East caused a sharp rise in diesel and other transportation costs.
• Negative operating leverage was driven by lower international sales and higher raw material and transportation costs.

Risks and Challenges:

• Market conditions remain difficult, particularly outside the U.S. due to El Niño.
• Rising diesel and transportation costs arising from Middle East instability have offset operational savings.
• Lower international sales contributed to negative operating leverage.
• Forward-looking statements are subject to risks and uncertainties detailed in SEC reports, including factors that may cause results to differ from expectations.

Management Commentary and Tone:

• CEO Dak Kaye stated that actions are taking hold and progress is building despite difficult market conditions.
• Kaye noted that cost actions taken in the first half are beginning to deliver operational savings.
• Kaye expressed confidence in a new product engine expected to drive growth over the next several years.
• CFO Matt Horwath noted progress in lower operating costs and improved manufacturing efficiencies, though offset by external cost pressures.
• Management emphasized a focus on staying close to customers, providing service and solutions, and controlling controllable factors.

Other Key Points:

• The company has more than 1,000 product registrations worldwide.
• The earnings conference call was hosted on November 9, 2026.
• Capital expenditures for the nine months ended September 30, 2026, were $4.7 million.
• Net cash used in operating activities for the nine months ended September 30, 2026, was $12.3 million.
• Net cash provided by financing activities for the nine months ended September 30, 2026, was $93.7 million, driven by borrowings under the line of credit and term loans.
• The company incurred $1.3 million in CFO transition costs and $1.7 million in transformation costs during the third quarter.
• Product liability claims were $22,000 in the third quarter 2026, compared to $7.0 million in the third quarter 2025.
• Asset impairments were $943,000 for the nine months ended September 30, 2026, compared to $227,000 in the prior year period.