American Vanguard Corporation ( (AVD) ) has released its Q3 earnings. Here is a breakdown of the information American Vanguard Corporation presented to its investors.
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American Vanguard Corporation is 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.
In its latest earnings report for the third quarter of 2025, American Vanguard Corporation reported a significant improvement in its financial performance compared to the same period last year. The company achieved a quarterly adjusted EBITDA of $8.2 million, a substantial increase from $1.8 million in the third quarter of 2024, while maintaining its full-year 2025 EBITDA guidance of $40 million to $44 million.
Key financial highlights include net sales of $119 million, a slight increase from $118 million in the previous year, and a gross profit margin that nearly doubled to 29% from 15%. The company also reported a net loss of $12.4 million, a significant improvement from the $25.7 million loss recorded in the same quarter last year. Additionally, American Vanguard reduced its total inventory by $47 million year-over-year, reflecting improved operational efficiency.
The company’s management attributes these positive results to greater manufacturing efficiency, lower net trade working capital, and reduced operational expenses. CEO Dak Kaye emphasized the company’s focus on simplifying operations and prioritizing customer needs, which has led to improved results despite a challenging agricultural environment. The company also plans to rebrand its non-crop business as the Specialty business to better align with industry standards.
Looking ahead, American Vanguard remains optimistic about achieving greater market stability as it concludes the year and enters 2026. The company expects to generate significant free cash flow in the fourth quarter, traditionally its strongest period, which will be directed towards debt reduction.