Q3 FY2026
Filed Nov 10, 2026American Vanguard reports Q3 2026 net loss of $(17,668) thousand, net sales down 9%, and a revised full-year outlook
Q3 net sales fell 9% to $108,376 thousand, gross margin fell to 24% from 29%, Adjusted EBITDA was $(24) thousand against $8,210 thousand a year earlier, and the net loss widened to $(17,668) thousand. Management cited progress on costs, but said it was more than offset by negative operating leverage. The filing also presents a revised full-year outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (Q3 2026)GAAP | $108.4M | – | -9 % |
| Cost of sales (Q3 2026)GAAP | −$82.12M | – | -3 % |
| Gross profit (Q3 2026)GAAP | $26.25M | – | -23 % |
| Gross margin (Q3 2026)GAAP | 24 % | – | – |
| Selling, general and administrative (Q3 2026)GAAP | −$25.80M | – | – |
| Research, product development and regulatory (Q3 2026)GAAP | −$5.34M | – | – |
| Product liability claims (Q3 2026)GAAP | −$22K | – | – |
| CFO transition costs (Q3 2026)GAAP | −$1.32M | – | – |
| Transformation expense (Q3 2026)GAAP | −$1.67M | – | – |
| Asset impairments (Q3 2026)GAAP | — | – | – |
| Operating expenses, as reported (Q3 2026, reconciliation table)GAAP | $34.22M | – | – |
| Operating loss (Q3 2026)GAAP | −$7.96M | – | – |
| Interest expense, net (Q3 2026)GAAP | −$9.15M | – | – |
| Loss before provision for income taxes (Q3 2026)GAAP | −$17.13M | – | – |
| Income tax expense (Q3 2026)GAAP | −$536K | – | – |
| Net loss (Q3 2026)GAAP | −$17.67M | – | – |
| Net loss per common share, basic and diluted (Q3 2026)GAAP | $(0.61) | – | – |
| Adjusted EBITDA (Q3 2026)non-GAAP | −$24K | – | – |
| Adjusted operating expenses (Q3 2026)non-GAAP | $27.78M | – | – |
| Net sales (nine months 2026)GAAP | $348.7M | – | -4 % |
| Cost of sales (nine months 2026)GAAP | −$249.3M | – | -4 % |
| Gross profit (nine months 2026)GAAP | $99.38M | – | -5 % |
| Gross margin (nine months 2026)GAAP | 29 % | – | – |
| Selling, general and administrative (nine months 2026)GAAP | −$80.13M | – | – |
| Research, product development and regulatory (nine months 2026)GAAP | −$17.10M | – | – |
| Product liability claims (nine months 2026)GAAP | −$223K | – | – |
| CFO transition costs (nine months 2026)GAAP | −$1.32M | – | – |
| Transformation expense (nine months 2026)GAAP | −$5.97M | – | – |
| Asset impairments (nine months 2026)GAAP | −$943K | – | – |
| Operating loss (nine months 2026)GAAP | −$6.38M | – | – |
| Interest expense, net (nine months 2026)GAAP | −$24.07M | – | – |
| Loss before provision for income taxes (nine months 2026)GAAP | −$30.64M | – | – |
| Income tax expense (nine months 2026)GAAP | −$1.04M | – | – |
| Net loss (nine months 2026)GAAP | −$31.68M | – | – |
| Net loss per common share, basic and diluted (nine months 2026)GAAP | $(1.10) | – | – |
| Adjusted EBITDA (nine months 2026)non-GAAP | $16.85M | – | – |
| Net cash used in operating activities (nine months 2026)GAAP | −$12.35M | – | – |
| Capital expenditures (nine months 2026)GAAP | −$4.68M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. Crop (Q3 2026)Quarterly net sales change of $(994) thousand against $43,310 thousand a year earlier. The filing gives no segment-specific explanation. | $42.32M | – | -2 % |
| U.S. Specialty (Q3 2026)Quarterly net sales change of $(361) thousand against $19,233 thousand a year earlier. The filing gives no segment-specific explanation. | $18.87M | – | -2 % |
| Total U.S. (Q3 2026)Quarterly net sales change of $(1,355) thousand against $62,543 thousand a year earlier. The CEO says the company continues to outperform peers in the U.S. | $61.19M | – | -2 % |
| International (Q3 2026)Quarterly net sales change of $(9,582) thousand against $56,770 thousand a year earlier. The CEO says El Nino is materially impacting the business outside the U.S. this year. The CFO cites lower international sales as a driver of negative operating leverage. | $47.19M | – | -17 % |
| U.S. Crop (nine months 2026)Nine-month net sales change of $3,999 thousand against $153,511 thousand a year earlier. | $157.5M | – | +3 % |
| U.S. Specialty (nine months 2026)Nine-month net sales change of $2,978 thousand against $54,067 thousand a year earlier. | $57.05M | – | +6 % |
| Total U.S. (nine months 2026)Nine-month net sales change of $6,977 thousand against $207,578 thousand a year earlier. | $214.6M | – | +3 % |
| International (nine months 2026)Nine-month net sales change of $(22,705) thousand against $156,848 thousand a year earlier. The CEO cites El Nino and geopolitics as pressures on global agricultural markets. | $134.1M | – | -14 % |
Full year 2026 (revised outlook as presented in the release) outlook
- RevenueSales of $500 million to $530 million
- NoteAdjusted EBITDA of $36 million to $40 million
Capital returns
- The release reports no share repurchases or dividends for the periods presented.
- Treasury stock at cost was $(71,201) thousand at both September 30, 2026 and December 31, 2025.
What drove it
- The CEO says the cost actions taken in the first half, including the rationalization of the Los Angeles facility and the relocation of headquarters, are beginning to deliver operational savings.
- The CEO says those savings have been more than offset in the near term by a sharp rise in diesel and other transportation costs arising from instability in the Middle East. This is the company's explanation.
- The CFO says lower international sales and higher raw material and transportation costs produced negative operating leverage in the quarter. This is the company's explanation.
- The CFO says net trade working capital improved by $22 million, or 14%, versus the prior year period.
- The CFO says customer pre-payments increased 44% year-over-year and demonstrate customer confidence for the 2027 planting season.
- The company says it acquired four U.S. brands and registrations from Syngenta at the end of the third quarter and entered into a distribution agreement with Sipcam Agro.
- The company reports a CFO transition cost of $(1,316) thousand in the quarter, which it excludes from Adjusted EBITDA.
Concerns
- Breakeven Adjusted EBITDA in Q3 2026 against $8,210 thousand a year earlier.
- Gross margin of 24% against 29% a year earlier, with gross profit down 23%.
- International net sales down 17% in the quarter, which the CEO links to El Nino.
- Interest expense, net, of $(9,146) thousand in the quarter against $(4,920) thousand a year earlier, and $(24,066) thousand for the nine months against $(13,135) thousand.
- Net loss per share of $(0.61) in the quarter and $(1.10) for the nine months, both wider than the prior-year comparatives.
- Total liabilities of $500,287 thousand against $404,140 thousand at December 31, 2025, following higher long-term debt.
- The release presents a revised full-year outlook, and the document does not give the prior outlook for comparison.
What to watch
- Whether the operational savings from the first-half cost actions appear in gross margin, given management's statement that diesel and transportation costs offset them in the near term.
- International net sales trend and the effect of El Nino, as cited by the CEO.
- Delivery against the revised full-year outlook of sales of $500 million to $530 million and Adjusted EBITDA of $36 million to $40 million.
- Conversion of the 44% year-over-year increase in customer pre-payments into 2027 planting season revenue.
- Revenue contribution from the Syngenta brands, the Sipcam Agro distribution agreement and the pipeline, against the stated goal of $100 million in annualized revenue from new products by 2030.
- Interest expense trajectory after the term loan borrowings and the payment-in-kind leverage fee.
Balance sheet and cash flow
- Cash was $83,909 thousand at September 30, 2026, against $12,425 thousand at December 31, 2025.
- Total assets were $663,410 thousand at September 30, 2026, against $596,537 thousand at December 31, 2025.
- Total stockholders' equity was $163,123 thousand at September 30, 2026, against $192,397 thousand at December 31, 2025.
- Current portion of long-term debt was $3,750 thousand at September 30, 2026, against nil at December 31, 2025.
- Long-term debt, net of current portion, was $263,937 thousand at September 30, 2026, against $174,000 thousand at December 31, 2025.
- Customer prepayments were $44,621 thousand at September 30, 2026, against $33,094 thousand at December 31, 2025.
- Inventories were $194,079 thousand at September 30, 2026, against $176,034 thousand at December 31, 2025.
- Nine-month cash flow statement shows proceeds from term loans of $225,000 thousand and payment of deferred loan fees of $(16,581) thousand.
- Nine-month cash flow statement shows a payment-in-kind debt leverage fee of $1,261 thousand.
- Net cash used in operating activities was $(12,346) thousand for the nine months, against $(27,144) thousand a year earlier, as printed in the cash flow statement.
Analysis
American Vanguard reported third-quarter 2026 net sales of $108,376 thousand, down 9% from $119,313 thousand, with gross profit of $26,252 thousand, down 23%, and gross margin of 24% against 29%. The International segment drove the decline, with net sales of $47,188 thousand, down 17%, while Total U.S. net sales were $61,188 thousand, down 2%. The CEO attributes the weakness outside the U.S. to El Niño, and the CFO cites lower international sales alongside higher raw material and transportation costs. For the nine months, U.S. net sales rose 3% to $214,555 thousand, while International fell 14% to $134,143 thousand, so total net sales were $348,698 thousand, down 4%.
The cost picture is mixed. Management reports operating savings from the first-half actions, including the Los Angeles facility rationalization and the headquarters relocation. In the same release, the CEO says those savings were more than offset in the near term by diesel and transportation costs that rose sharply due to instability in the Middle East. Reported operating expenses fell to $34,217 thousand from $40,719 thousand, and adjusted operating expenses fell to $27,780 thousand from $28,576 thousand. Even so, the operating loss widened to $(7,965) thousand from $(6,505) thousand, because the gross profit decline was larger than the expense reduction.
Below the operating line, interest expense, net, rose to $(9,146) thousand from $(4,920) thousand in the quarter and to $(24,066) thousand from $(13,135) thousand for the nine months. The balance sheet shows cash of $83,909 thousand, up from $12,425 thousand, alongside long-term debt of $263,937 thousand, up from $174,000 thousand, and a term loan borrowing of $225,000 thousand in the nine-month cash flow statement. Net loss was $(17,668) thousand for the quarter, or $(0.61) per share, against $(12,358) thousand, or $(0.43) per share. Adjusted EBITDA was $(24) thousand, against $8,210 thousand a year earlier.
Working capital and customer behavior are the bright spots the filing points to. The CFO says net trade working capital improved by $22 million, or 14%, and that customer pre-payments rose 44% year-over-year, which management presents as a sign of customer confidence for the 2027 planting season. The release also lists the acquisition of four U.S. brands and registrations from Syngenta and a distribution agreement with Sipcam Agro, which management says expand the portfolio toward a goal of $100 million in annualized revenue from new products by 2030.
The release revises the full-year outlook to sales of $500 million to $530 million and Adjusted EBITDA of $36 million to $40 million. The prior outlook is not included in the documents provided, so the direction of the revision cannot be confirmed from this filing. The reader should weigh the outlook against the nine-month Adjusted EBITDA of $16,849 thousand, which was $22,222 thousand a year earlier, and the Q3 Adjusted EBITDA of $(24) thousand.
Management, verbatim
Our actions are taking hold, and the progress we are making across American Vanguard continues to build, even as market conditions remain difficult, particularly outside the U.S., where El Niño is materially impacting our business this year.
Dak Kaye, Chief Executive Officer
We began to see progress this quarter in terms of lower operating costs and improved manufacturing efficiencies as a result of actions taken earlier this year. However, this progress was more than offset in the quarter by the effects of negative operating leverage, driven by lower international sales and higher raw material and transportation costs.
Matt Horwath, Chief Financial Officer
Not in the filing
stated, not guessed- Prior full-year outlook was not provided, so the revision cannot be compared line by line.
- Guidance for gross margin, operating expenses, tax rate and net income was not given.
- Prior-year and prior-quarter comparisons for gross margin, selling, general and administrative expense, research expense, and other line items where the release prints only the current and prior-year values were not expressed as percentage changes in the filing.
- Prior-year figures for CFO transition costs were not printed (shown as a dash).
- Sequential (prior quarter) figures were not printed in the release.
- Basis-point change in gross margin was not printed.
- Nine-month adjusted operating expenses were not printed.
- Nine-month reported operating expenses subtotal was not printed.
- Net trade working capital was described as improved by $22 million, or 14%, but its absolute level was not printed.
- Customer pre-payment increase of 44% is a percentage change, and the underlying pre-payment change in dollars is not printed in the release text beyond the balance sheet.
- Share repurchases and dividends were not reported.
- Share price reaction and analyst consensus were not provided and are not included.
- Total debt was not printed as a single figure; the two tranches are shown separately.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.