Overview

* American Vanguard ( AVD ) Q3 revenue missed analyst expectations, net income also missed

* Adjusted EBITDA for Q3 rises to $8.2 mln from $1.8 mln last year

* Company maintains full-year 2025 EBITDA guidance of $40 mln to $44 mln

Outlook

* American Vanguard ( AVD ) maintains 2025 adjusted EBITDA guidance of $40 mln to $44 mln

* Company expects greater market stability as it heads into 2026

* Fourth quarter expected to be strongest, generating material free cash flow

Result Drivers

* MANUFACTURING EFFICIENCY - Improved manufacturing efficiency contributed to higher gross profit margins and increased EBITDA

* INVENTORY REDUCTION - Reduction in total inventory by $47 mln limited the need to access credit

* PRODUCT LIABILITY CHARGE - $7.6 mln charge for product liability claims included in adjusted EBITDA, with future recovery expected

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $119.31 $128 mln

Revenue mln (1

Analyst)

Q3 Net Miss -$12.36 -$2.35

Income mln mln (1

Analyst)

Q3 Miss -$6.51 $1.12

Operatin mln mln (1

g Income Analyst)

Q3 Gross $34.21

Profit mln

Analyst Coverage

* The one available analyst rating on the shares is "buy"

* The average consensus recommendation for the agricultural chemicals peer group is "buy"

* Wall Street's median 12-month price target for American Vanguard Corp ( AVD ) is $12.00, about 57.5% above its November 7 closing price of $5.10

* The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)