American Vanguard Reports Third Quarter 2026 Results
Strategic Deals in Quarter Expand U.S. Product Portfolio
Consolidation Driving Manufacturing Efficiency Gains
El Nino and Geopolitics Pressure Global Agricultural Markets
IRVINE, CA / ACCESS Newswire / November 9, 2026 / American Vanguard Corporation, a diversified specialty and agricultural products company that develops, manufactures, and markets solutions for crop protection and nutrition, turf and ornamental management and commercial pest control, today reported financial results for the third quarter and nine-months ended September 30, 2026.
Third Quarter 2026 Financial and Operational Highlights - versus Third Quarter 2025
Dak Kaye, CEO of American Vanguard, stated, "Our actions are taking hold, and the progress we are making across American Vanguard continues to build, even as market conditions remain difficult, particularly outside the U.S., where El Niño is materially impacting our business this year. In the U.S., our largest and most important market, we continue to outperform our peers in a challenging environment. The cost actions we took in the first half, including the rationalization of our Los Angeles facility and the relocation of our headquarters are beginning to deliver operational savings. In the near term, however, those savings have been more than offset by a sharp rise in diesel and other transportation costs arising from instability in the Middle East. We are working to recover gross margins through commercial actions."
Mr. Kaye continued, "Importantly, we are building a new product engine that we believe will drive growth over the next several years. At the end of the third quarter, we acquired four U.S. brands and registrations from Syngenta® and entered into a distribution agreement with Sipcam Agro, which together meaningfully expand our portfolio. Combined with our pipeline of new product launches, these additions support our goal of driving $100 million in annualized revenue from new products by 2030. I am also pleased that we have further strengthened our leadership team in the quarter with the additions of Matt Horwath as Chief Financial Officer, and Hermann Castro, Senior Vice President of Marketing and Business Development, to drive new product development and Mark Helt as President of U.S. Crop. Our focus is the same in every market: stay close to our customers, provide service and solutions, and control what we can control."
Matt Horwath, Chief Financial Officer, stated, "We began to see progress this quarter in terms of lower operating costs and improved manufacturing efficiencies as a result of actions taken earlier this year. However, this progress was more than offset in the quarter by the effects of negative operating leverage, driven by lower international sales and higher raw material and transportation costs. Net trade working capital improved by $22 million, or 14%, versus the prior year period. Higher pre-payments in the quarter, which increase by 44% year-over-year, demonstrate customer confidence and bode well for revenue in the 2027 planting season."
Earnings Conference Call
The company will be hosting an earnings conference call on November 9, 2026 at 5:00 pm Eastern Time/2:00 pm Pacific Time.
The conference call will be webcast on the Company's website at https://www.investors-american vanguard.com/ or by going to the following link: https://www.webcaster5.com/Webcast/Page/3070/54771
If you are unable to listen live, the conference call will be archived for one year and may be accessed using the company's website: https://www.investors-american-vanguard.com/
About American Vanguard
American Vanguard Corporation is a diversified specialty and agriculture products company that develops and markets products for crop protection and management, turf and ornamentals management, and public health. Over the past 20 years, through product and business acquisitions, the Company has significantly expanded its operations and now has more than 1,000 product registrations worldwide. To learn more about the Company, please reference www.american-vanguard.com.
The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release the matters set forth in this press release include forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward looking statements often use words such as "believe," "expect," "anticipate," "intend," "estimate," "project," "outlook," "forecast," "target," "trend," "plan," "goal," or other words of comparable meaning or future-tense or conditional verbs such as "may," "will," "should," "would," or "could." These forward-looking statements are based on the current expectations and estimates by the Company's management and are subject to various risks and uncertainties that may cause results to differ from management's current expectations. Such factors include risks detailed from time-to-time in the Company's SEC reports and filings. All forward-looking statements, if any, in this release represent the Company's judgment as of the date of this release. The company disclaims any intent or obligation to update these forward-looking statements.
Non-GAAP Financial Measures
In addition to providing results that are determined in accordance with accounting principles generally accepted in the United States of America (GAAP), we present Adjusted EBITDA and Adjusted operating expenses, which are non-GAAP financial measures. These measures should not be considered in isolation or as an alternative to GAAP measures such as net income, or diluted earnings per share, as applicable, or other financial statement data presented in our financial statements as an indicator of our financial performance or liquidity.
We define EBITDA as net (loss) income, adjusted for depreciation and amortization, provision for income taxes and interest expense. We define Adjusted EBITDA as EBITDA as further adjusted for stock compensation expense and for certain items management believe are not reflective of the underlying operations of our business, including but not limited to the exclusion of charges that are considered by management to be unusual and not representative of the Company's underlying performance and future prospects. In 2026 and 2025 that included non-recurring expenses. The resulting Adjusted EBITDA measure is aligned with the Company's metric for its credit facility agreement in the applicable periods.
We define Adjusted operating expense as operating expenses as further adjusted for stock compensation expense and for certain items management believe are not reflective of the underlying operations of our business, including but not limited to the exclusion of charges that are considered by management to be unusual and not representative of the Company's underlying performance and future prospects as well as the amortization expense for intangibles assets related to acquired product lines.
We use Adjusted EBITDA and Adjusted operating expenses to assess the operating results and effectiveness and efficiency of our business. We present this non-GAAP financial measure because we believe that investors consider Adjusted EBITDA and Adjusted operating expenses to be an important supplemental measure of performance, and we believe that this measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. As the Company continues to work through its transformation efforts, management believes that presenting Adjusted EBITDA and Adjusted operating expenses provides an effective comparison between the Company and its industry peers. Non-GAAP financial measures as reported by us may not be comparable to similarly titled metrics reported by other companies and may not be calculated in the same manner. These measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.
The Company is not able to provide a reconciliation without unreasonable efforts of its forward-looking guidance related to Adjusted EBITDA and Adjusted operating expenses to the most directly comparable GAAP financial measure due to the inherent difficulty in predicting with reasonable certainty the timing and amount of certain items that are excluded from Adjusted EBITDA and Adjusted operating expenses, such as share-based compensation, acquisition-related expenses, and foreign exchange gains or losses, which could be material to the Company's results computed in accordance with GAAP.
Investor Representative
Alpha IR Group
Robert Winters
[email protected]
(917) 821-6305
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
ANALYSIS OF SALES
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
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(Unaudited)
1 Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net (loss) income, operating (loss) income or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from adjusted EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company's competitors) may define adjusted EBITDA differently.
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO ADJUSTED OPERATING EXPENSES
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(Unaudited)
1 We exclude stock-based compensation, which is non-cash, from the non-GAAP financial measures because the Company believes that such exclusion provides a better comparison of results of ongoing operations for current and future periods with such results from past periods.
2 Represents incremental consulting, severance, facility-rationalization, and systems-implementation costs under the Company's Transformation program, which management excludes as not indicative of ongoing operating performance.
3 Represents charges for specific product liability matters, net of expected insurance recoveries, which management excludes as not indicative of ongoing operating performance.
4 Adjusted operating expenses is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to operating expenses or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from Adjusted operating expenses are detailed in the reconciliation attached to this news release. Other companies (including the Company's competitors) may define Adjusted operating expenses differently.
SOURCE: American Vanguard