American Vanguard Corporation, through its various subsidiaries, develops, manufactures, and markets a diverse portfolio of specialized chemicals for agricultural, commercial, and consumer ...
American Vanguard Corporation (NYSE: AVD) is a holding company that, through its subsidiaries, develops, manufactures, and markets a diverse range of specialty chemicals for agricultural, commercial, and consumer applications. Founded in 1969, the company has grown from a regional contract manufacturer into a fully integrated producer of branded products, including ...American Vanguard Corporation (NYSE: AVD) is a holding company that, through its subsidiaries, develops, manufactures, and markets a diverse range of specialty chemicals for agricultural, commercial, and consumer applications. Founded in 1969, the company has grown from a regional contract manufacturer into a fully integrated producer of branded products, including insecticides, herbicides, fungicides, molluscicides, soil health solutions, plant nutrition, and growth regulators. Its offerings are available in liquid, powder, and granular forms, serving crop cultivation, turf and ornamental management, and human and animal health protection. The company also distributes finished chemical and biological products for crop use and extends to turf and ornamental markets. American Vanguard's distribution network includes partnerships with national distributors, purchasing collectives, co-operatives, and its own sales offices and independent agents. With a focus on innovation, the company has developed GreenSolutions™ biological products and precision ag technologies. As of recent data, the company employs 739 full-time staff and is led by CEO Douglas A. Kaye III, who was appointed in December 2024. Financial metrics indicate a market cap of approximately $62.6 million, with a challenging financial period reflected in negative profit margins and returns. The company maintains a focus on sustainable and integrated solutions for global agriculture, with a commitment to environmental stewardship and community engagement.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$515.1M
-5.9%
-5.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-49.9M
+60.5%
-138.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+28.6%
+30.3%
-4.4%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.7%
+114.4%
-112.2%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-9.7%
+58.1%
-152.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-25.3M
-571.3%
+27.6%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-4.9%
-613.3%
+23.4%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
99.5%
+38.2%
+4.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.77x
+8.5%
+6.5%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to the American Vanguard Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. A Q&A session will follow the formal presentation. Please note, this conference is being recorded. I will now turn the conference over to your host, Robert Winters, Director of Investor Relations. You may begin.
Robert Winters: Thank you, operator. Good afternoon, and welcome to American Vanguard's Second Quarter 26 Earnings Review Conference Call. Our prepared remarks will be led by Dak Kaye, Chief Executive Officer and David T. Johnson, Chief Financial Officer. After their prepared remarks, we will open up the call for questions. A copy of today's press release along with supplemental slides are available on our website. A replay of the webcast and from this event will be made available on our website shortly after the call. Before we begin our presentation, we would like to remind everyone that today's press release and certain comments on the call include non GAAP figures, and forward looking statements. And actual results may differ materially from these forecasts. Please refer to the cautionary language in our press release and slides and to the risk factors described in our SEC filings. All of which are available on our website. it is now my pleasure to turn the call over to CEO, Dak Kaye.
Douglas A. Kaye: Thank you, Bobby, and welcome, everyone, to our second quarter 26 earnings conference call. Results for the quarter and the first half of this year reflect ongoing and dynamic cross currents affecting our agricultural markets and customers around the world. But more importantly, the progress we are making on lowering cost and driving commercial improvement regardless of the environment. I want to make 3 major points today. First, despite these difficult market conditions, we are outperforming our peers in The US markets. Second, with the implementation of our business improvement plans, we are gaining greater operating leverage. Third, our investment in new product development is paving the way for future growth and profitability. In our initiative to reorganize, refocus, and invigorate the commercial effort across the company, are making good progress so far. The results for the first half of 26 have laid the foundation for opportunities that we believe are both ahead of us and in our control. Before covering our performance, let's turn to market conditions. The crop protection market in The US continued to be difficult in the second quarter due to continued pressure on the farm economy coming from multiple directions. Including the sustained high cost of capital coupled with increased fuel and fertilizer costs arising from the ongoing conflict in The Middle East. Distributors, retailers, and growers have continued to be conservative in their buying practices. Ordering on an as needed basis and even then deferring purchases from month to month when they can. Which is shifting order …