American Vanguard (NYSE:AVD) Posts Earnings Results, Misses Estimates By $0.08 EPS

American Vanguard (NYSE:AVD) announced its earnings results on Wednesday. The basic materials company reported ($0.14) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.08), Zacks reports. The company had revenue of $123.57 million during the quarter, compared to analyst estimates of $120.00 million. American Vanguard had a negative net margin of 8.71% and a negative return on equity of 4.00%.

Here are the key takeaways from American Vanguard’s conference call:

• Net sales were $124 million, up ~7% YoY—driven by a 17% increase in U.S. crop sales and 6% specialty growth, while international sales declined ~7% due to timing in Brazil and India.
• Adjusted EBITDA surged ~245% YoY to $10.3 million and gross margin improved ~500 bps; management reiterates 2026 guidance of $44–$48 million adjusted EBITDA on $530–$550 million sales.
• Operational moves—shifting synthesis from the L.A. site to Axis, Alabama—are expected to drive at least $4 million in annualized savings, contributed to lower adjusted operating expenses (26.7% of sales) and a $10 million inventory reduction YoY.
• The new capital structure replaced the revolver with term loans, raising cash to $71 million but increasing total debt to $267 million (net debt ~$196 million); management warns the refinancing is higher cost even though it provides liquidity and flexibility.
• Growth strategy and targets include 50 new product launches in five years to add $100 million annualized revenue by 2030, a goal of >$600 million revenue by end-2028, and a long-term ~15% EBITDA margin target.

American Vanguard Stock Up 2.6%

Shares of NYSE:AVD traded up $0.08 during trading on Thursday, hitting $2.99. 430,230 shares of the company were exchanged, compared to its average volume of 246,173. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.77 and a quick ratio of 0.93. American Vanguard has a 12-month low of $2.05 and a 12-month high of $5.92. The stock has a market capitalization of $102.21 million, a P/E ratio of -1.88 and a beta of 1.48. The firm’s 50 day moving average price is $3.14 and its 200-day moving average price is $4.08.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings raised American Vanguard from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, American Vanguard currently has a consensus rating of “Hold” and an average target price of $12.00.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP boosted its holdings in American Vanguard by 4.4% in the 4th quarter. Wellington Management Group LLP now owns 1,700,161 shares of the basic materials company’s stock valued at $6,495,000 after purchasing an additional 71,632 shares in the last quarter. Geode Capital Management LLC grew its holdings in American Vanguard by 2.2% during the 2nd quarter. Geode Capital Management LLC now owns 639,301 shares of the basic materials company’s stock valued at $2,506,000 after buying an additional 13,657 shares during the last quarter. AQR Capital Management LLC increased its position in American Vanguard by 117.8% during the 1st quarter. AQR Capital Management LLC now owns 436,687 shares of the basic materials company’s stock worth $1,921,000 after purchasing an additional 236,212 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in shares of American Vanguard by 12.9% during the third quarter. JPMorgan Chase & Co. now owns 436,398 shares of the basic materials company’s stock worth $2,505,000 after buying an additional 50,004 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in American Vanguard by 1,397.5% in the 4th quarter. Russell Investments Group Ltd. now owns 336,277 shares of the basic materials company’s stock worth $1,285,000 after acquiring an additional 313,821 shares during the period. 79.00% of the stock is owned by hedge funds and other institutional investors.

About American Vanguard

American Vanguard Corporation (NYSE: AVD) is a developer, manufacturer and marketer of specialty chemical products for crop protection, turf and ornamental care, and public health pest control. Headquartered in Newport Beach, California, the company offers a portfolio of insecticides, herbicides, fungicides and rodenticides designed for use across agricultural, turf and urban pest management applications. Its research and development efforts focus on novel chemistries and formulation technologies that address emerging pest resistance and regulatory requirements.

The company’s product lines include emulsifiable concentrates, wettable powders, granular formulations, baits and liquid concentrates sold under proprietary brand names.