American Vanguard Reports Second Quarter 2026 Results
Rhea-AI Summary
American Vanguard (NYSE:AVD) reported second quarter 2026 net sales of $117 million, down from $129 million in 2025, with gross margin at 30% versus 31%. The company posted an operating loss of $0.3 million, net loss of $9.9 million, adjusted EBITDA of $6.6 million (down from $11.0 million), and EPS of ($0.34) compared with ($0.03) a year earlier.
For the first half of 2026, net sales were $240 million versus $245 million, while gross margin improved to 30% from 29%. Operating profit rose to $1.6 million, net loss widened to $14 million, and adjusted EBITDA increased to $16.9 million from $14.0 million, with EPS at ($0.49) versus ($0.33). The company reaffirmed its 2026 outlook for adjusted EBITDA of $44–48 million on sales of $530–550 million, highlighted a 3% Q2 operating expense reduction, 12% higher R&D spending, a planned Los Angeles facility rationalization expected to save at least $4 million annually, and a $10 million year-over-year inventory reduction.
Positive
- First-half adjusted EBITDA $16.9M vs. $14.0M (+21%)
- First-half gross margin 30% vs. 29% (+100 bps)
- 2026 guidance reaffirmed: adjusted EBITDA $44–48M; sales $530–550M
- Q2 operating expenses reduced 3% year-over-year
- Annual cost savings from L.A. facility rationalization expected ≥$4M
- Inventories decreased $10M year-over-year, improving working capital
Negative
- Q2 net sales $117M vs. $129M (decline of about 9%)
- Q2 adjusted EBITDA $6.6M vs. $11.0M (significant decrease)
- Q2 net loss $9.9M vs. $0.849M; EPS ($0.34) vs. ($0.03)
- First-half net loss $14.0M vs. $9.3M; EPS ($0.49) vs. ($0.33)
- Q2 operating result loss of $0.3M vs. prior-year operating income of $4.4M
News Explained
With the outlook reaffirmed, the latest available
Sources and calculations
- American Vanguard Reports Second Quarter 2026 Results (2026-08-10)
- American Vanguard first-quarter 2026 fundamentals (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $70,914,000 / ($35,442,000 / 90) = [object Object]
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q1 earnings report | Positive | +2.4% | Higher sales, margin expansion, EBITDA growth, and reaffirmed full-year guidance |
| Mar 16 | Full-year earnings | Negative | -14.0% | Net loss, new term loans, and restructuring despite operational improvement commentary |
| Nov 10 | Q3 earnings report | Positive | -0.8% | EBITDA and gross-margin improvement accompanied by a net loss and special charge |
| Nov 05 | Earnings date notice | Neutral | -1.4% | Scheduled third-quarter results and conference call logistics were announced |
| Jul 31 | Q2 earnings report | Positive | +9.1% | EBITDA and margin improved while debt and inventory declined year over year |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -0.94% 24-hour reaction, with three aligned reactions and two divergences.
Key Terms
adjusted ebitda financial
gaap financial
non-gaap financial measures financial
net debt financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First-Half Gross Profit Increased
Reaffirm Full-Year Outlook; Adjusted EBITDA
IRVINE, CA / ACCESS Newswire / August 10, 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 second quarter and six-months ended June 30, 2026.
Second Quarter 2026 Financial and Operational Highlights - versus Second Quarter 2025
Net sales of
$117 million as compared to$129 million ;Gross profit margin of
30% , as compared to31% ;Operating loss of
$0.30 million , as compared to operating income of$4.4 million ;Net loss of
$9.9 million , as compared to$849 thousand ;Adjusted EBITDA1 of
$6.6 million , as compared to$11.0 million ;EPS of (
$0.34) , as compared to ($0.03)
First Half 2026 Financial and Operational Highlights - versus First Half 2025
Net sales of
$240 million , as compared to$245 million Gross profit margin of
30% , as compared to29% Operating profit of
$1.6 million , as compared to operating profit of$0.06 million ;Net loss of
$14 million , as compared to$9.3 million ;Adjusted EBITDA of
$16.9 million , as compared to$14 million ;EPS of (
$0.49) , as compared to ($0.33)
Dak Kaye, CEO of American Vanguard, stated "Results for the second quarter and the first half of this year demonstrate the steady progress we are making on lowering costs and inventories, as well as driving commercial improvement, in spite of ongoing and dynamic crosscurrents affecting our agricultural markets and customers around the world. Our collective efforts to manage working capital, factory efficiency and controllable expenses while investing in the future have set the foundation for the opportunities that we believe lie ahead of us. Importantly, we are beginning to outperform our competition in our most important market, the U.S., and I'm excited about the opportunity to build on this going forward and spread this across the rest of our businesses."
Mr. Kaye continued, "In our efforts to reorganize, refocus and invigorate the commercial effort across the Company, we are making good progress so far. Distributors, retailers and growers remain conservative in their buying practices, ordering on an as needed basis and deferring purchases month to month where they can. This, in turn, has shifted order patterns across our businesses, both domestically and internationally. In this environment, we must be agile, and our focus and efforts right now are to increase customer engagement and drive customer service while at the same time accelerating new product development and introduction, always striving to be a solutions provider for our customers, wherever we meet them. With the first half behind us and our cost and commercial initiatives executing to our plan, we are reaffirming our full-year outlook."
David Johnson, Chief Financial Officer stated, "Second quarter gross margin reflected lower sales and the timing of customer shipments, but first half margin still improved 100 basis points on slightly lower sales, a direct result of our business improvement plan efforts. We reduced operating expenses by
Earnings Conference Call
The company will be hosting an earnings conference call on August 10, 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/3070/54326
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)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
ANALYSIS OF SALES
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
AMERICAN VANGUARD CORPORATION AND SUBSIDIARIES
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands)
(Unaudited)
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.
SOURCE: American Vanguard
View the original press release on ACCESS Newswire