American Vanguard (NYSE:AVD) Issues Earnings Results, Misses Estimates By $0.43 EPS

Key Points

• American Vanguard missed quarterly expectations: The company reported a $0.34 loss per share versus the $0.09 consensus estimate, while revenue of $116.75 million fell short of the $135 million forecast. Sales declined 9% year over year and adjusted EBITDA dropped to $6.6 million.
• U.S. operations and cost reductions provided support: First-half U.S. sales increased 6%, specialty sales rose 10%, and margin improvements, lower expenses and the Los Angeles plant rationalization are expected to generate at least $4 million in annual savings.
• Management maintained its 2026 outlook, but risks remain: Guidance calls for $530 million–$550 million in sales and $44 million–$48 million in adjusted EBITDA, despite continued international weakness, higher costs and net debt of approximately $225 million. Analysts maintain a “Sell” consensus rating.

American Vanguard (NYSE:AVD - Get Free Report) posted its quarterly earnings results on Monday. The basic materials company reported ($0.34) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.43), FiscalAI reports. The firm had revenue of $116.75 million for the quarter, compared to the consensus estimate of $135.00 million. American Vanguard had a negative return on equity of 4.13% and a negative net margin of 8.71%.

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

• Second-quarter results weakened: Sales fell 9% year over year to $117 million, while adjusted EBITDA declined to $6.6 million from $11 million, pressured by lower international sales, higher freight costs and weaker factory absorption.
• U.S. operations continued to outperform, with first-half U.S. sales up 6% and specialty sales rising 10%; herbicides and biological solutions were areas of strength. Management said delayed cotton shipments moved into the third quarter and maintained its 2026 outlook.
• Cost-reduction initiatives are beginning to improve operating leverage: first-half gross margin expanded 100 basis points to 30%, operating expenses declined, inventories fell by $10 million year over year, and the Los Angeles plant rationalization is expected to save at least $4 million annually.
• Management reiterated its 2026 guidance of $530 million–$550 million in sales and $44 million–$48 million in adjusted EBITDA, while targeting more than $600 million of annualized revenue and double-digit EBITDA margins by the second half of 2028 through new products and efficiency improvements.
• International markets remain challenging because of adverse El Niño weather, inflation, raw-material costs and weaker demand in Brazil and Mexico. Net debt rose sequentially to approximately $225 million at quarter-end as seasonal working-capital needs increased.

American Vanguard Stock Performance

Shares of AVD stock traded down $0.10 during trading on Monday, reaching $2.31. 225,954 shares of the company's stock were exchanged, compared to its average volume of 313,594. The company has a quick ratio of 1.41, a current ratio of 2.32 and a debt-to-equity ratio of 1.39. The stock has a market capitalization of $66.08 million, a PE ratio of -1.45 and a beta of 1.43. American Vanguard has a twelve month low of $2.05 and a twelve month high of $5.92. The firm's fifty day moving average price is $2.67 and its 200-day moving average price is $3.29.

Insider Transactions at American Vanguard

In other American Vanguard news, Director Patrick E. Gottschalk purchased 25,000 shares of the business's stock in a transaction on Tuesday, May 19th. The stock was acquired at an average price of $2.70 per share, with a total value of $67,500.00. Following the acquisition, the director directly owned 191,705 shares of the company's stock, valued at $517,603.50. This trade represents a 15.00% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. 5.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On American Vanguard

Large investors have recently modified their holdings of the stock. Russell Investments Group Ltd. lifted its stake in American Vanguard by 15.0% in the 3rd quarter. Russell Investments Group Ltd. now owns 22,456 shares of the basic materials company's stock valued at $129,000 after purchasing an additional 2,921 shares during the last quarter. Barclays PLC increased its holdings in shares of American Vanguard by 3.6% during the fourth quarter. Barclays PLC now owns 126,269 shares of the basic materials company's stock worth $482,000 after buying an additional 4,391 shares in the last quarter. Strs Ohio bought a new position in shares of American Vanguard in the 1st quarter valued at $28,000. Wells Fargo & Company MN boosted its holdings in shares of American Vanguard by 46.2% during the 4th quarter. Wells Fargo & Company MN now owns 28,650 shares of the basic materials company's stock valued at $109,000 after acquiring an additional 9,055 shares in the last quarter. Finally, nVerses Capital LLC bought a new stake in American Vanguard during the 4th quarter worth $42,000. 79.00% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Separately, Weiss Ratings lowered shares of American Vanguard from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, May 18th. One research analyst has rated the stock with a Sell rating, According to MarketBeat, American Vanguard presently has an average rating of "Sell".

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.

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