American Vanguard Reports First Quarter 2026 Results

First Quarter Revenue Growth of 7% to $124 million

Gross Margin Expansion of 500 bps

Reaffirm Full-Year Outlook; Adjusted EBITDA $44 million to $48 million on Sales of $530 million to $550 million

NEWPORT BEACH, CA / ACCESS Newswire / May 6, 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 first quarter ended March 31, 2026.

Financial and Operational Highlights First Quarter 2026 - versus First Quarter 2025:

Net sales of $124 million vs. $116 million;
Gross profit margin of 31% vs. 26%;
Operating income of $1.9 million vs. an operating loss of $4.3 million:
Net loss of $4.1 million vs. $8.5 million;
Adjusted EBITDA¹ of $10.3 million vs. $3.0 million;
EPS of $(0.14) vs. ($0.30);

Dak Kaye, CEO of American Vanguard, stated "American Vanguard got off to a good start in the first quarter of 2026, with Net Sales of $124 million, up approximately 7% year-over-year, driven by strong demand in our domestic crop business. Adjusted EBITDA improved significantly year-over-year, reflecting better margins, cost discipline, and the benefits of the business improvements we have been implementing. While the agricultural environment remains challenging with farmers continuing to buy on a just-in-time basis and geopolitical uncertainty adding to that caution, we are controlling what we can control and executing our plan."

Mr. Kaye concluded, "As part of our business improvement initiative, we have begun the optimization of activities at our Los Angeles manufacturing facility and are relocating synthesis operations to build on the strengths of our Axis site. The manufacturing optimization initiative is progressing as planned, and we expect annualized savings of at least $4 million. Our new capital structure, anchored by the two term loans, provides the longer-term financial foundation we need to execute our growth strategy without being constrained by seasonal working capital dynamics. Our growth strategy is focused on incremental increases in sales and margin improvement alongside balance sheet strengthening. This strategy is focused on improving our net working capital and lowering our net debt², putting us in a position to refinance our debt by the end of 2028, if we chose to do so."

_________________________________

¹Adjusted 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.

²Net debt, a non-GAAP measure, is presented as supplemental disclosure because we believe it is useful in understanding our financial condition. Net debt is calculated as total outstanding indebtedness less cash.

David Johnson, Chief Financial Officer stated, "Our first quarter financial results reflect meaningful progress across the business. Gross margin reached 31%, up 500 basis points, as compared to the year-ago period, driven by a favorable mix of higher-margin domestic crop products, strong performance in our OHP Specialty business, and continued factory efficiency. Operating expenses ended the quarter slightly lower than prior year, when expressed as a percentage of net sales, a clear reflection of our continued cost discipline."

Mr. Johnson continued, "With the refinancing, the balance sheet included cash of $71 million at quarter-end, as compared to cash of $12 million this time last year. Net debt at the end of the quarter was $196 million. Our accounts receivable increased compared to the same time last year because of the lower level of customer prepayments in December 2025, as compared to the prior year. We expect to receive those payments in June and in July, thereby further strengthening our cash position. Inventories declined by nearly $10 million year-over-year to $175 million, demonstrating that our Sales and Inventory planning process ("SIOP") improvements and supply chain discipline are gaining traction. We remain focused on lowering our net trade working capital and reducing net debt."

Earnings Conference Call
The company will be hosting an earnings conference call on May 6, 2026 at 4:30 pm Eastern Time/1:30 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/3070/53902

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 Net Debt, 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 Net Debt as outstanding indebtedness less cash and 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 use Adjusted EBITDA 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 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 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 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, 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
Robert.winters@alpha-ir.com
(917) 821-6305

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (Unaudited)

ASSETS	March 31, 2026			December 31, 2025
Current assets:
Cash	$	70,914		$	12,425
Receivables:
Trade, net of allowance for credit losses of $12,293 and $11,733, respectively		179,336			160,511
Other		7,372			7,278
Total receivables, net		186,708			167,789
Inventories		175,038			176,034
Prepaid expenses		7,687			9,668
Income taxes receivable		3,203			4,606
Total current assets		443,550			370,522
Property, plant and equipment, net		51,721			53,036
Operating lease right-of-use assets, net		16,031			16,793
Intangible assets, net		136,071			138,746
Deferred income tax assets		3,369			2,637
Other assets		14,501			14,803
Total assets	$	665,243		$	596,537
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt	$	2,250		$	-
Accounts payable		90,672			87,505
Customer prepayments		14,438			33,094
Accrued program costs		46,099			52,227
Accrued expenses and other payables		30,436			28,261
Operating lease liabilities, current		5,517			5,765
Income taxes payable		1,512			2,594
Total current liabilities		190,924			209,446
Long-term debt, net of current portion⁽²⁾		264,384			174,000
Operating lease liabilities, long-term		10,991			11,621
Deferred income tax liabilities		8,209			8,150
Other liabilities		1,115			923
Total liabilities		475,623			404,140
Commitments and contingent liabilities (Note 13)
Stockholders' equity:
Preferred stock, $0.10 par value per share; authorized 400,000 shares; none issued		-			-
Common stock, $0.10 par value per share; authorized 40,000,000 shares; issued 34,979,775 shares at March 31, 2026 and 34,923,562 shares at December 31, 2025		3,498			3,492
Additional paid-in capital		117,530			117,106
Accumulated other comprehensive loss		(11,062	)		(12,000	)
Retained earnings		150,855			155,000
		260,821			263,598
Less treasury stock at cost, 5,915,182 shares at March 31, 2026 and December 31, 2025		(71,201	)		(71,201	)
Total stockholders' equity		189,620			192,397
Total liabilities and stockholders' equity	$	665,243		$	596,537

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	For the three months ended March 31
	2026			2025
Net sales	$	123,568		$	115,800
Cost of sales		(85,151	)		(85,609	)
Gross profit		38,417			30,191
Operating expenses
Selling, general and administrative		(27,713	)		(26,628	)
Research, product development and regulatory		(5,271	)		(5,682	)
Product liability claims		(81	)		-
Transformation		(2,804	)		(2,191	)
Asset impairments		(659	)		-
Operating income (loss)		1,889			(4,310	)
Change in fair value of an equity investment		(120	)		-
Interest expense, net		(5,790	)		(3,765	)
Loss before provision for income taxes		(4,021	)		(8,075	)
Income tax expense		(124	)		(387	)
Net loss	$	(4,145	)	$	(8,462	)
Net loss per common share - basic	$	(0.14	)	$	(0.30	)
Net loss per common share - assuming dilution	$	(0.14	)	$	(0.30	)
Weighted average shares outstanding - basic		28,649			28,271
Weighted average shares outstanding - assuming dilution		28,649			28,271

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
ANALYSIS OF SALES
(In thousands)
(Unaudited)

	For the three months ended March 31,
	2026			2025			Change			% Change
Net sales:
U.S. crop	$	67,028		$	57,176		$	9,852			17	%
U.S. Specialty		16,502			15,601			901			6	%
Total U.S.		83,530			72,777			10,753			15	%
International		40,038			43,023			(2,985	)		-7	%
Total net sales	$	123,568		$	115,800		$	7,768			7	%
Total cost of sales	$	(85,151	)	$	(85,609	)	$	458			-1	%
Total gross profit	$	38,417		$	30,191		$	8,226			27	%
Total gross margin		31	%		26	%

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	For the three months ended March 31
	2026			2025
Cash flows from operating activities:
Net loss	$	(4,145	)	$	(8,462	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property, plant and equipment and intangible assets		4,685			4,744
Amortization of other long-term assets		5			5
Provision for estimated credit losses		444			1,056
Stock-based compensation		186			559
Deferred income taxes		(204	)		1,348
Change in liabilities for uncertain tax positions or unrecognized tax benefits		(17	)		90
Change in equity investment fair value		120			-
Impairment of assets		659			-
Payment-in-Kind interest		112			-
Amortization of deferred loan fees		738			235
Lease obligations and non-cash lease expense, net		(115	)		(109	)
Foreign currency transaction (losses) gains		28			(99	)
Changes in assets and liabilities associated with operations:
(Increase) decrease in net receivables		(19,088	)		6,892
Decrease (increase) in inventories		1,530			(4,721	)
Increase in prepaid expenses and other assets		(877	)		(856	)
Change in income tax receivable and payable, net		385			(1,885	)
Increase in accounts payable		2,871			22,966
Decrease in customer prepayments		(18,656	)		(28,215	)
(Decrease) increase in accrued program costs		(6,170	)		837
Increase (decrease) in other payables and accrued expenses		2,067			(14,961	)
Net cash used in operating activities		(35,442	)		(20,576	)
Cash flows from investing activities:
Capital expenditures		(971	)		(431	)
Proceeds from disposal of property, plant and equipment		7			12
Intangible assets		(9	)		(27	)
Net cash used in investing activities		(973	)		(446	)
Cash flows from financing activities:
Payments under line of credit agreement		(140,000	)		(89,098	)
Borrowings under line of credit agreement		26,000			109,265
Borrowings under term loans		225,000			-
Payment of deferred loan fees		(16,234	)		(687	)
Net receipt from the issuance of common stock under ESPP		263			332
Net payment from common stock purchased for tax withholding		(19	)		(11	)
Net cash provided by financing activities		95,010			19,801
Net increase (decrease) in cash		58,595			(1,221	)
Effect of exchange rate changes on cash and cash equivalents		(106	)		512
Cash at beginning of period		12,425			12,514
Cash at end of period	$	70,914		$	11,805

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(Unaudited)

	For the three months ended March 31
	2026			2025
Net loss	$	(4,145	)	$	(8,462	)
Provision for income taxes		124			387
Interest expense, net		5,790			3,765
Depreciation and amortization		4,624			4,749
Stock compensation expense		186			559
Transformation costs		2,804			2,191
Asset impairments		659			-
Other		217			(216	)
Adjusted EBITDA⁽¹⁾	$	10,259		$	2,973

AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF TOTAL INDEBTEDNESS TO NET DEBT
(In thousands)
(Unaudited)

	March 31, 2026			December 31, 2025
Current portion of long-term debt	$	2,250		$	-
Long-term debt, net of current portion		264,384			174,000
Total indebtedness	$	266,634		$	174,000
Less: Cash		(70,914	)		(12,425	)
Net Debt ⁽²⁾	$	195,720		$	161,575

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.

SOURCE: American Vanguard

View the original press release on ACCESS Newswire