American Vanguard (NYSE:AVD) Issues Earnings Results

American Vanguard (NYSE:AVD) released 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. American Vanguard had a negative net margin of 8.71% and a negative return on equity of 4.13%. The business had revenue of $116.75 million for the quarter, compared to the consensus estimate of $135.00 million.

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 Trading Down 4.1%

Shares of AVD traded down $0.10 during trading hours on Monday, hitting $2.31. 225,954 shares of the stock were exchanged, compared to its average volume of 313,594. The company has a debt-to-equity ratio of 1.39, a current ratio of 2.32 and a quick ratio of 1.41. The firm has a market capitalization of $66.08 million, a P/E ratio of -1.45 and a beta of 1.43. The business has a 50-day moving average of $2.67 and a 200-day moving average of $3.29. American Vanguard has a fifty-two week low of $2.05 and a fifty-two week high of $5.92.

Analyst Ratings Changes

Separately, Weiss Ratings downgraded American Vanguard from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, May 18th. One equities research analyst has rated the stock with a Sell rating, According to data from MarketBeat.com, the stock has an average rating of “Sell”.

Insiders Place Their Bets

In other American Vanguard news, Director Patrick E. Gottschalk acquired 25,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average cost of $2.70 per share, with a total value of $67,500.00. Following the transaction, the director owned 191,705 shares in the company, valued at approximately $517,603.50. The trade was a 15.00% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Insiders own 5.60% of the company’s stock.

Institutional Investors Weigh In On American Vanguard

Several large investors have recently added to or reduced their stakes in AVD. Russell Investments Group Ltd. boosted its holdings in shares of American Vanguard by 15.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 22,456 shares of the basic materials company’s stock worth $129,000 after buying an additional 2,921 shares in the last quarter. Barclays PLC increased its stake in shares of American Vanguard by 3.6% in the 4th quarter. Barclays PLC now owns 126,269 shares of the basic materials company’s stock valued at $482,000 after acquiring an additional 4,391 shares in the last quarter. Strs Ohio acquired a new position in shares of American Vanguard during the 1st quarter valued at $28,000. Wells Fargo & Company MN boosted its stake in American Vanguard by 46.2% during the fourth quarter. Wells Fargo & Company MN now owns 28,650 shares of the basic materials company’s stock worth $109,000 after acquiring an additional 9,055 shares in the last quarter. Finally, nVerses Capital LLC bought a new position in American Vanguard during the fourth quarter worth $42,000. Institutional investors and hedge funds own 79.00% of the company’s stock.

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.