American Vanguard | 8-K: FY2025 Q3 Revenue Misses Estimate at USD 119.31 M

LB filings

2025.11.12 12:27

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Revenue: As of FY2025 Q3, the actual value is USD 119.31 M, missing the estimate of USD 128 M.

EPS: As of FY2025 Q3, the actual value is USD -0.43, missing the estimate of USD -0.08.

EBIT: As of FY2025 Q3, the actual value is USD -1.585 M.

U.S. GAAP Revenue: $119 million for Q3 2025, a 1% increase from $118 million in Q3 2024. Adjusted revenue for Q3 2024 would have been $130 million due to a nonrecurring item.
U.S. Crop: $43.3 million, up 22% from $35.5 million.
U.S. Non-Crop: $19.2 million, down 14% from $22.5 million.
Total U.S.: $62.5 million, up 8% from $58.0 million.
International: $56.8 million, down 6% from $60.3 million.
Total Net Sales: $119.3 million, up 1% from $118.3 million.

Adjusted EBITDA: Increased from $1.8 million in Q3 2024 to $8.2 million in Q3 2025, marking an increase of over 350%.
Gross Profit Margin: Increased to 29% in Q3 2025 from 15% in Q3 2024. Adjusted gross margin for Q3 2024 would have been 26%.
Operating Loss: - $6.5 million vs. - $28.4 million.
Net Loss: - $12.4 million vs. - $25.7 million.
Operating Expenses: Decreased by approximately $6 million in Q3 2025 compared to Q3 2024, and by $14 million for the nine-month period.
Net Debt: Decreased by approximately $2 million to $165 million compared to the same period last year.

Free Cash Flow: Expected to be reasonably attractive in Q4 2025, with most of it applied towards debt paydown.
Net Cash Used in Operating Activities: - $27.1 million vs. - $21.5 million.
Net Cash Used in Investing Activities: - $2.0 million vs. - $6.4 million.
Net Cash Provided by Financing Activities: $32.1 million vs. $28.5 million.
Cash and Cash Equivalents at End of Period: $16.8 million vs. $11.9 million.

Inventory: Reduced by approximately $47 million compared to the previous year, with a significant drawdown expected in Q4 2025.
Net Trade Working Capital: Approximately $24 million lower than the previous year.

Adjusted EBITDA Target: Full year 2025 target maintained at $40 million to $44 million.
Net Sales Forecast: Lowered to $520 million to $535 million for 2025 due to market conditions in Mexico, Central America, and Australia.
Growth Opportunities: Potential to contribute $100 million of net sales over the medium term through geographic expansion and new product lines.
The company expects to generate a material amount of free cash flow during the fourth quarter, which will be allocated towards debt paydown.