Newport Beach, Calif. — June 6, 2025 — American Vanguard® Corporation (NYSE: AVD), a diversified specialty and agricultural products company that develops, manufactures, and markets crop protection and nutrition solutions, turf and ornamental products, and commercial pest control technologies, today announced its financial and operational results for the first quarter ended March 31, 2025. The company faced ongoing challenges in a difficult agricultural market environment but emphasized meaningful progress in its operational improvements and strategic transformation efforts.
First Quarter 2025 Financial Highlights
In a comparison of the first quarter of 2025 with the same period in 2024, American Vanguard reported a significant decline in key financial metrics, underscoring the continued pressure facing the global agricultural supply industry:
- Net Sales totaled $115.8 million, representing a decline from $135.1 million in the first quarter of 2024.
- Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key measure of operating performance, dropped to $3.0 million, down sharply from $15.5 million in the prior-year period.
- Earnings per share (EPS) were reported at $(0.30), reflecting a loss, compared to $0.06 per share in the first quarter of 2024.
Despite these declines, the company remains focused on structural improvements and cost containment to weather the current downturn and position itself for a recovery.
Operational Highlights and Strategic Actions
In addition to financial metrics, American Vanguard noted several key operational improvements aimed at strengthening its business fundamentals:
- Net working capital was reduced by $85 million year-over-year, a notable achievement given the market challenges.
- Operating expenses decreased by 5% on a GAAP basis. When excluding transformation-related costs and a non-recurring expense, the reduction in operating expenses deepened to 14%.
These improvements reflect the company’s proactive approach to managing expenses, streamlining operations, and navigating the effects of reduced customer procurement activity.
CEO Commentary on Market Conditions and Company Outlook
Douglas A. Kaye III, President and Chief Executive Officer of American Vanguard, addressed the ongoing headwinds facing the company and the broader agricultural input industry in his statement accompanying the earnings release.
“The first quarter of 2025 presented a challenging environment for suppliers in the global agricultural sector, continuing the trends we have seen over the past 18 to 24 months,” said Kaye. “Amid persistent global economic uncertainty and elevated interest rates, our customers remained focused on reducing their inventory levels and adopted a just-in-time approach to procurement. This cautious buying behavior put pressure on our sales volumes and impacted our financial results for the quarter.”
Despite these challenges, Kaye emphasized the company’s ongoing progress in reshaping its cost structure, which he views as a foundation for future profitability.
“While our financial performance reflects the current market downturn, we have made meaningful strides in operational efficiency and cost reduction,” he added. “If the current market softness persists, we are prepared to take additional cost-cutting measures over the coming quarters to ensure financial stability.”
Looking forward, Kaye expressed cautious optimism about the trajectory of the business, suggesting that early signs of improvement are already emerging in the second quarter of the year.
“The market is beginning to show signs of recovery in Q2, and consistent with seasonal trends and improved customer demand, we expect stronger performance in the second half of 2025. As we implement our commercial and operational improvements, we anticipate that margins will strengthen. These improvements are either already in place or well underway, giving us confidence in our ability to drive better results in the latter half of the year and into 2026.”
Financial Discipline and Balance Sheet Strengthening
David T. Johnson, Vice President, Chief Financial Officer, and Treasurer of American Vanguard, provided additional context on the company’s financial management and balance sheet strategy. He highlighted the importance of cost discipline and capital structure improvements during the current period of industry weakness.
“As the agricultural chemical sector continues to recover from a cyclical downturn, our team has remained laser-focused on improving our cost structure,” said Johnson. “The initial outcomes of our expense control measures are encouraging, and we intend to maintain a disciplined approach to spending by limiting non-essential costs.”
Johnson also emphasized the company’s success in deleveraging and strengthening its financial position:
- Total debt declined to $167 million, down from $187 million in the same quarter of the previous year.
- Net working capital fell to $153 million, compared to $238 million at the end of Q1 2024.
“These steps position us well for a return to growth as market conditions improve. We will continue to prioritize balance sheet health and cash flow discipline as key strategic pillars moving forward,” Johnson concluded.
Driving Toward a Simplified and Focused Business Model
In his closing remarks, CEO Douglas Kaye reinforced the importance of operational simplicity, prioritization, and execution as core elements of American Vanguard’s transformation strategy.
“I firmly believe that simplifying our operations and processes will enable us to focus more effectively on what truly matters. That clarity will help us deliver better outcomes for our customers, employees, and shareholders,” he said. “My message to the entire organization is simple but powerful: SIMPLIFY, PRIORITIZE, and DELIVER. By embracing these principles, we can reaffirm our status as a trusted provider of proven agricultural and environmental solutions.”
Earnings Conference Call Information
American Vanguard will host an earnings conference call to discuss the first quarter 2025 results on Friday, June 6, 2025, at 9:00 a.m. Eastern Time. Investors and analysts may access the live webcast through the following link A replay of the call will be available on the same website shortly after the conclusion of the event.
In addition to the webcast, a presentation summarizing the quarter’s performance and strategic initiatives will be available in the Investor Relations section of the company’s website. Management encourages shareholders to review the materials in conjunction with the earnings release for a more comprehensive understanding of the company’s financial and strategic positioning.
