# AMERICAN VANGUARD CORP (AVD)

Informational only - not investment advice.

CIK: 0000005981
SIC: 2870 Agricultural Chemicals
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2870 Agricultural Chemicals](/industry/2870/)
Latest 10-K filed: 2026-03-16
SEC page: https://www.sec.gov/edgar/browse/?CIK=5981
Filing source: https://www.sec.gov/Archives/edgar/data/5981/000119312526108593/avd-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-16 · accession 0001193125-26-108593 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005981.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 515,114,000 USD | 2025 | verified |
| Net income | -49,882,000 USD | 2025 | verified |
| Assets | 596,537,000 USD | 2025 | verified |
| Free cash flow | -25,110,000 USD | 2025 | computed |
| Net margin | -9.68% | 2025 | computed |
| Operating margin | -5.49% | 2025 | computed |
| Revenue YoY | -5.88% | 2025 | computed |
| ROE | -25.93% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | AVD | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -9.7% | 1.2% | 34 | 219 |
| Operating margin | -5.5% | 3.0% | 40 | 201 |
| Revenue growth | -5.9% | 8.0% | 18 | 251 |
| FCF margin | -4.9% | -1.7% | 45 | 251 |
| ROE | -25.9% | -23.2% | 48 | 314 |
| ROA | -8.4% | -12.1% | 55 | 340 |
| Liabilities / equity | 2.10 | 0.61 | 83 | 319 |
| Current ratio | 1.77 | 3.93 | 18 | 341 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 28 Chemicals And Allied Products, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 515114000 | USD | 2025 | 2026-03-16 |
| Net income | -49882000 | USD | 2025 | 2026-03-16 |
| Assets | 596537000 | USD | 2025 | 2026-03-16 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-16. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005981.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 312,113,000 | 355,047,000 | 454,272,000 | 468,186,000 | 458,704,000 | 557,676,000 | 609,615,000 | 579,371,000 | 547,306,000 | 515,114,000 |
| Net income |  |  | 12,788,000 | 20,274,000 | 24,195,000 | 13,601,000 | 15,242,000 | 18,587,000 | 27,404,000 | 7,519,000 | -126,340,000 | -49,882,000 |
| Operating income |  |  | 20,540,000 | 26,794,000 | 39,021,000 | 26,221,000 | 22,908,000 | 30,946,000 | 40,651,000 | 23,295,000 | -101,555,000 | -28,296,000 |
| Gross profit |  |  | 128,288,000 | 147,392,000 | 182,631,000 | 177,354,000 | 172,590,000 | 170,723,000 | 192,388,000 | 179,164,000 | 120,317,000 | 147,561,000 |
| Diluted EPS |  |  | 0.44 | 0.68 | 0.81 | 0.46 | 0.51 | 0.61 | 0.92 | 0.26 | -4.50 | -1.75 |
| Operating cash flow |  |  | 46,406,000 | 59,001,000 | 11,658,000 | 9,613,000 | 90,324,000 | 86,361,000 | 57,105,000 | -58,748,000 | 3,923,000 | -21,191,000 |
| Capital expenditures |  |  | 10,630,000 | 6,666,000 | 8,050,000 | 12,985,000 | 11,249,000 | 9,518,000 | 13,261,000 | 11,878,000 | 7,279,000 | 3,919,000 |
| Dividends paid |  |  | 578,000 | 1,600,000 | 2,199,000 | 2,323,000 | 1,168,000 | 2,382,000 | 2,787,000 | 3,384,000 | 2,510,000 | 0.00 |
| Share buybacks | 1,934,000 | 1,531,000 |  |  | 7,287,000 | 2,604,000 | 0.00 | 4,579,000 | 34,002,000 | 15,539,000 | 0.00 | 0.00 |
| Assets |  |  | 429,956,000 | 535,592,000 | 593,587,000 | 670,098,000 | 680,293,000 | 694,160,000 | 726,313,000 | 767,548,000 | 636,721,000 | 596,537,000 |
| Liabilities |  |  | 147,599,000 | 230,278,000 | 264,357,000 | 325,942,000 | 319,557,000 | 321,422,000 | 356,334,000 | 397,538,000 | 403,611,000 | 404,140,000 |
| Stockholders' equity |  |  | 282,357,000 | 305,314,000 | 329,230,000 | 344,156,000 | 360,736,000 | 372,738,000 | 369,979,000 | 370,010,000 | 233,110,000 | 192,397,000 |
| Free cash flow |  |  | 35,776,000 | 52,335,000 | 3,608,000 | -3,372,000 | 79,075,000 | 76,843,000 | 43,844,000 | -70,626,000 | -3,356,000 | -25,110,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2013 | 2014 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 4.10% | 5.71% | 5.33% | 2.91% | 3.32% | 3.33% | 4.50% | 1.30% | -23.08% | -9.68% |
| Operating margin |  |  | 6.58% | 7.55% | 8.59% | 5.60% | 4.99% | 5.55% | 6.67% | 4.02% | -18.56% | -5.49% |
| Return on equity |  |  | 4.53% | 6.64% | 7.35% | 3.95% | 4.23% | 4.99% | 7.41% | 2.03% | -54.20% | -25.93% |
| Return on assets |  |  | 2.97% | 3.79% | 4.08% | 2.03% | 2.24% | 2.68% | 3.77% | 0.98% | -19.84% | -8.36% |
| Liabilities / equity |  |  | 0.52 | 0.75 | 0.80 | 0.95 | 0.89 | 0.86 | 0.96 | 1.07 | 1.73 | 2.10 |
| Current ratio |  |  | 2.34 | 2.02 | 2.13 | 2.43 | 1.93 | 1.53 | 1.46 | 1.87 | 1.63 | 1.77 |

## As-reported value updates

3 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/AVD/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-10. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000005981.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.23 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.07 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | -0.04 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 149,516,000 | -325,000 | -0.01 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 172,180,000 | 6,979,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 135,143,000 | 1,552,000 | 0.06 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 128,209,000 | -11,721,000 | -0.42 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 118,307,000 | -25,742,000 | -0.91 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 165,647,000 | -90,429,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 115,800,000 | -8,462,000 | -0.30 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 129,313,000 | -849,000 | -0.03 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 119,313,000 | -12,358,000 | -0.43 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 150,688,000 | -28,213,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 123,568,000 | -4,145,000 | -0.14 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 116,754,000 | -9,868,000 | -0.34 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from AVD's latest 10-K: [/company/AVD/business/](/company/AVD/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from AVD's latest 10-K: [/company/AVD/risk-factors/](/company/AVD/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/5981/000119312526342489/avd-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-10
Report date: 2026-06-30

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Numbers in thousands)

FORWARD-LOOKING STATEMENTS/RISK FACTORS:

The Company, from time-to-time, may discuss forward-looking statements including assumptions concerning the Company’s operations, future results and prospects. Generally, “may,” “could,” “will,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue” and similar words identify forward-looking statements. Forward-looking statements appearing in this report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations and are subject to risks and uncertainties that can cause actual results and events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions contained in the entire report. Such factors include, but are not limited to: product demand and market acceptance risks; the effect of economic conditions; weather conditions; military activity and other geopolitical activity; changes in regulatory policy; the impact of competitive products and pricing; changes in foreign exchange rates; product development and commercialization difficulties; capacity and supply constraints or difficulties; availability of capital resources given that interest rate and inflation affect the debt market; and general business regulations, including taxes and other risks as detailed from time-to-time in the Company’s reports and filings filed with the U.S. Securities and Exchange Commission (“SEC”). It is not possible to foresee or identify all such factors. We urge you to consider these factors carefully in evaluating the forward-looking statements contained in this report. You should evaluate all forward-looking statements made in this Form 10-Q in the context of the risks and uncertainties disclosed in Part II, Item 1A of this Form 10-Q under the heading "Risk Factors," in Part I, Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations," and in Item 3 "Quantitative and Qualitative Disclosures About Market Risk."

The forward-looking statements included in this Form 10-Q are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

Three Months Ended June 30, 2026 and 2025:

Overview of the Company’s Performance

With prolonged pressure on the farm economy from higher fuel and fertilizer costs during the second quarter of 2026, distributors, retailers and growers continued to follow conservative procurement practices, buying goods closer to time-of-need and minimizing carrying costs which, in some cases (as with the Company's cotton products) deferring purchases until the third quarter. At the same time, domestic demand for our Specialty products was strong. However, in light of adverse weather and increased raw material costs, International markets have softened. As a consequence, on a consolidated basis, the Company’s financial performance declined with respect to both net sales and profitability in the period.

Overall net sales during the quarter declined by 10% over the comparable period last year. This performance included decreases in net sales of both US Crop (down 9%, largely from a shift in sales of cotton products to the third quarter) and International business (down 18%, largely due to weather and higher prices occasioned by increased raw material costs), partially offset by increased net sales in our Specialty business (up 11%). With lower sales, gross profit decreased 14% quarter-over-quarter. Further, with increased freight costs (largely due to fuel prices) and higher net factory costs, gross margin percentages ended at 30% for the second quarter of 2026, as compared to 31% in the same quarter of the prior year.

While declining by 3% on an absolute basis quarter-over-quarter, operating expenses as a percentage of net sales increased to 30% from 28% in the same quarter of the prior year. Compared to the same period of the prior year, research, product development and regulatory expenses increased by 12%, selling expenses declined by 5%, and general and administrative expenses declined by 9%. Expenses in the three months ended June 30, 2026, related to continued transformation efforts, primarily focused on transferring manufacturing activities from our LA facility to Axis, amounted to $1,506.

Interest expense, net increased by $4,680 due to increased borrowing under the new debt structure (consisting of the First Lien Term Loan and Second Lien Term Loan), that was put into place on March 13, 2026, and the comparatively higher effective interest rate thereunder.

The Company recorded an income tax expense of $383 compared to $765 in the same period of last year. The decrease in income tax expense compared to the same period last year is primarily attributed to a reduction in the estimated effective tax rate for the full year for primarily the profitable entities with no established valuation allowance. The Company generated a net loss of $9,868 or $(0.34) per share compared to a net loss of $849 or $(0.03) per share in the same quarter of the prior year.

19

RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","","For the Three Months Ended June 30,"],["","","2026","","","2025","","","Change","","","% Change"],["Net sales:"],["U.S. crop","","$","48,033","","","$","52,674","","","$","(4,641",")","","","-9","%"],["U.S. Specialty","","","21,804","","","","19,585","","","","2,219","","","","11","%"],["Total U.S.","","","69,837","","","","72,259","","","","(2,422",")","","","-3","%"],["International","","","46,917","","","","57,054","","","","(10,137",")","","","-18","%"],["Total net sales","","$","116,754","","","$","129,313","","","$","(12,559",")","","","-10","%"],["Total cost of sales","","$","(82,041",")","","$","(88,766",")","","$","6,725","","","","-8","%"],["Total gross profit","","$","34,713","","","$","40,547","","","$","(5,834",")","","","-14","%"],["Total gross margin","","","30","%","","","31","%"]]
[[/GREPCENT_TABLE]]

Our domestic crop business recorded net sales during the second quarter of 2026 that were 9% lower than those of the second quarter of 2025. The decrease was driven largely by timing of product sales within the cotton portfolio, specifically Bidrin® cotton insecticide and Folex® cotton defoliant, which carried over into the third quarter (in the case of Folex, closer to time of use as a harvest aid). In addition, granular soil insecticide sales declined quarter over quarter, reflecting softer demand for products such as Aztec®, and Thimet® amid variable pest pressure and more cautious grower spending across key corn and row crop markets. The decreases were partially offset by direct business-to-business sales from the US Crop business to certain foreign customers (as part of our organization restructuring) and strong performance in the herbicide and fungicide portfolios, led by continued momentum from Impact® and Envoke®. Soil fumigant sales also rose during the period, supported by steady demand for proven nematode and disease management solutions in high-value crop markets.

Our domestic Specialty business posted a 11% increase in net sales over the second quarter with improved sales across the portfolio. Among the drivers were increased sales of turf products (Turfcide® fungicide and Dylox® insecticide), herbicide products (particularly Bromacil and Imazaquin).

Net sales of our international businesses decreased by 18% during the period. Within Central America, demand for various products, including Mocap®, Thimet®, and various third-party products, was reduced on account of El Niño weather, which brought drier than normal conditions and either delayed or suspended crop planting. This effect was felt primarily in rice in Panamá and Nicaragua, peanuts in Nicaragua and vegetables in Guatemala. In addition, certain direct business-to-business sales are now managed by the US crop business as part of our drive for improved operational efficiency. Further, product sales to certain banana plantations were paused in light of labor union activity. In addition, in Mexico, Bromacil herbicide sales were down due to reduced demand from the agave market, while sales of soil fumigants declined due to shipping issues. These decreases were partially offset by stronger sales of Counter, K Salt and Gesapax Combi in Mexico. In Brazil, demand for the two main products (Redshield and Argenfrut) declined due, in part, to higher prices occasioned by raw material cost increases.

On a consolidated basis, gross profit for the second quarter of 2026 decreased by 14% as compared to the second quarter of 2025, due largely to decreased sales volume. With increased freight costs and higher net factory costs, the Company recorded a gross margin percentage of 30% for the quarter, as compared to 31% for the same period of the prior year.

20

The change in operating expenses by department is as follows:

[[GREPCENT_TABLE]]
[["","","For the Three Months Ended June 30,"],["","","2026","","","2025","","","Change","","","% Change"],["Operating expenses"],["Selling","","$","11,102","","","$","11,633","","","$","(531",")","","","-5","%"],["General and administrative"],["Other","","","12,394","","","","13,791","","","","(1,397",")","","","-10","%"],["Amortization","","","3,034","","","","3,049","","","","(15",")","","","0","%"],["Legal reserves","","","92","","","","150","","","","(58",")","","","-39","%"],["Research, product development and regulatory","","","6,484","","","","5,803","","","","681","","","","12","%"],["Product liability claims","","","119","","","","\u2014","","","","119","","","","100","%"],["Asset impairments","","","284","","","","134","","","","150","","","","112","%"],["Transformation","","","1,506","","","","1,621","","","","(115",")","","","-7","%"],["Total","","$","35,015","","","$","36,181","","","$","(1,166",")","","","-3","%"]]
[[/GREPCENT_TABLE]]

•
Selling expenses decreased for the three months ended June 30, 2026, as compared to the same period of the prior year. This decrease was primarily associated with lower wages, salaries and travel expenses, and lower spending on advertising and promotional activities, as the Company focused on controlling operating expenses and improving operational efficiency.

•
Other general and administrative expenses decreased during the three months ended June 30, 2026, as compared to the same period of the prior year. The main drivers were reduced wages and salaries and lower expenses related to outside service providers.

•
Amortization remained flat during the three months ended June 30, 2026, as compared to the same period of the prior year.

•
Legal reserves pertain to an EPA matter during the three months ended June 30, 2026, and minor products complaints during the three months ended June 30, 2025. The two matters are unrelated.

•
Research, product development costs and regulatory expenses increased for the three months ended June 30, 2026, as compared to the same period of the prior year. This increase was driven by higher expenses associated with third-party product development studies.

•
Product liability claims relate to the Company's Specialty business.

•
Asset impairments for the three months ended June 30, 2026, relate to the decision to discontinue synthesis operations at the Los Angeles manufacturing facility. During the three months ended June 30, 2025, the Company made the decision to discontinue selling one small volume product and wrote off the remaining intangible asset book value in the amount

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/5981/000119312526108593/avd-20251231.htm
Complete FY 2025 MD&A: /company/AVD/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-16
Report date: 2025-12-31

ITEM 7 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS/RISK FACTORS:

The Company, from time-to-time, may discuss forward-looking statements including assumptions concerning the Company’s operations, future results and prospects. Generally, “may,” “could,” “will,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue” and similar words identify forward-looking statements. Forward-looking statements appearing in this Report are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on our current expectations and are subject to risks and uncertainties that can cause actual results and events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions contained in the entire Report, including those set forth in Part I, Item 1A, “Risk Factors” of this Annual Report on Form 10-K. The information contained in this section should also be read in conjunction with our consolidated financial statements and related notes and the information contained elsewhere in this Annual Report on Form 10-K. See also “Forward-Looking Statements” immediately prior to Part I, Item 1, “Business” in this Annual Report on Form 10-K.

The discussion and analysis of our financial condition and results of operations for 2025, as compared to 2024, appears below.

For the discussion and analysis of our financial condition and results of operations, as well as cash flows, for 2024, as compared to 2023, please see “Item 7-Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s annual report on Form 10-K for the year ended December 31, 2024, which was filed with the U.S. Securities and Exchange Commission on May 29, 2025.

MANAGEMENT OVERVIEW

Despite a challenging economic backdrop, we believe, American Vanguard has improved in the areas that are under management’s direct control. The Company is improving its procurement process through the implementation of advanced software systems and the recruitment of industry leading executives. This has led to higher gross profit margins, as compared to 2024, which are expected to further improve over the medium term, as additional refinements to our systems and processes take place. Management has also made substantial improvements to its operating cost structure and through initiatives that have already been announced, such as its decision to streamline our corporate structure by removing the international BV from our management structure, rationalizing and enhancing its IT systems and by making the decision to move its corporate headquarters. These and a number of other initiatives are expected to see further costs taken out of this category over the coming quarters.

While the management team has made meaningful progress implementing its business improvement initiatives, the agriculture economy is still in the midst of a cyclical downturn. Agricultural commodity prices remain near historically low levels as uncertainty remains around forecasted agricultural commodity inventory levels and crop acreage. Customer inventories now appear to be at low levels and during the second half of 2025 material that was being consumed in the field appeared to match purchasing patterns. Thus, it is likely that destocking has substantially run its course. Given the current economic uncertainty, it is unlikely that we will see a strong push to rebuild inventory, but an end to destocking would be a positive for the industry and the first step in an eventual cyclical upturn.

Turning to financial performance, the Company’s 2025 net sales declined, while gross profit margin and net loss improved, as compared to 2024, due, in part, to the management team’s business improvement plan. Net sales declined by approximately 6% during 2025, with domestic net sales remaining flat, while international net sales declining by 14%. Weakness in the international segment can be attributed to a prolonged severe drought in key markets in Australia and lower granular soil insecticide sales in Mexico, significantly impacted by excessive channel inventory.

Initiatives undertaken as part of the Company's business improvement plan resulted in reduced cost of sales in 2025 (71% of net sales) vs. 2024 (78% of net sales). The improvements are the result of lower reserves for slow moving and obsolete inventory in 2025 vs. 2024, and a significant improvement in our approach to strategic procurement driving lower raw material costs. In 2025, we recorded approximately $3,802 in inventory reserves as compared to $21,417 in 2024.

18

Operating expenses decreased by 21% in 2025, as compared to 2024. The Company spent significantly less on transformation and incurred lower asset impairment charges during 2025, as compared to 2024. In addition, Management continued its focus on containing selling, general and administrative expenses and decreased its research, product development and regulatory expense. The benefits from these efforts were partially offset by expenses related to product liability claims.

With continued comparative lower net sales and higher inventory level, the Company’s average indebtedness remained flat with the prior year at $194,669 as compared to $195,160, during 2024. Interest expenses was up slightly as a result of increased in effective interest rates and additional loan amendment origination fees .

On a full-year basis, the Company generated a net loss of $49,882 (or $1.75 per share) in 2025, as compared to a net loss of $126,340 (or $4.50 per share) during 2024. Details of our financial performance are set forth below.

Results of Operations

2025 Compared with 2024:

[[GREPCENT_TABLE]]
[["","","2025","","","2024","","","$ Change","","","% Change"],["Net sales:"],["U.S. crop","","$","221,391","","","$","228,327","","","$","(6,936",")","","-3%"],["U.S. non-crop","","","90,290","","","","82,400","","","","7,890","","","10%"],["Total U.S.","","","311,681","","","","310,727","","","","954","","","0%"],["International","","","203,433","","","","236,579","","","","(33,146",")","","-14%"],["Total net sales","","$","515,114","","","$","547,306","","","$","(32,192",")","","-6%"],["Total cost of sales","","$","(367,553",")","","$","(426,989",")","","$","59,436","","","-14%"],["Total gross profit","","$","147,561","","","$","120,317","","","$","27,244","","","23%"],["Total gross margin","","29%","","","22%"]]
[[/GREPCENT_TABLE]]

Net sales of our U.S. crop business were 3% lower than those of the prior year. The primary areas of weakness were soil fumigants and granular soil insecticides. Fumigants were negatively impacted by weakness in the potato market, where farmers are planting fewer acres in response to a weak demand and pricing environment. This weakness was partially offset by strength in the herbicide segment where the company benefited from a full year of sales of a recently introduced product, Zalo, and strong demand for our Impact product line, the company’s broad-based herbicide used on corn crops.

Net sales of our U.S. non-crop business were 10% higher than the previous year. This improvement was driven by revenue recognized from a business-to-business technology licensing agreement in the amount of $11,250, partially offset by a decline in our nursery and ornamental business.

Net sales of our International businesses were 14% lower than the previous year. International sales were impacted by drought conditions in Australia, which led to low molluscicide sales. Our Mexican business saw weakness in net sales due to slower demand, as a result of channel inventory. On the other hand, biological net sales were an area of strength in our international business.

Overall costs of sales decreased by 14% across our U.S. crop, U.S. non-crop and International. The decreases resulted from improved strategic actions to manage raw material and manufacturing costs. Furthermore, in 2025 the Company identified certain items of slow moving or potentially obsolete inventories and took reserves in the amount of $3,802 to reduce those inventory items to net realizable value. In comparison, in 2024, the Company recorded reserves of $21,417.

19

Operating expenses decreased by $46,015 in 2025 to $175,857, as compared to $221,872 in 2024. The differences in operating expenses by department are as follows:

[[GREPCENT_TABLE]]
[["","","2025","","","2024","","","Change","","","% Change"],["Operating expenses"],["Selling","","$","45,428","","","$","48,732","","","$","(3,304",")","","","-7","%"],["General and administrative"],["Other","","$","53,082","","","$","56,378","","","","(3,296",")","","","-6","%"],["Amortization","","","12,123","","","","13,339","","","","(1,216",")","","","-9","%"],["Legal reserves","","","\u2014","","","","1,185","","","","(1,185",")","","","-100","%"],["Research, product development and regulatory","","","23,161","","","","32,662","","","","(9,501",")","","","-29","%"],["Product liability claims","","","9,730","","","","\u2014","","","","9,730","","","","100","%"],["Transformation","","","7,187","","","","20,162","","","","(12,975",")","","","-64","%"],["Asset impairment","","","25,395","","","","50,414","","","","(25,019",")","","","-50","%"],["Gain from sale of asset","","","(249",")","","","(1,000",")","","","751","","","","-75","%"],["Total","","$","175,857","","","$","221,872","","","$","(46,015",")","","","-21","%"]]
[[/GREPCENT_TABLE]]

•
Selling expenses decreased by $3,304 for the year ended December 31, 2025, as compared with the prior year. This was mainly associated with actions implemented to streamline our global commercial team and to improve effectiveness, including tight controls on advertising and promotions and other short term controllable costs.

•
Other general and administrative expenses decreased by $3,296, primarily associated with reduced headcount across the global business as we streamlined the organization.

•
Amortization declined as compared to prior year, as the result of assets that were retired during 2025 or were fully impaired at the end of 2024.

•
In 2024, the Company recorded a reserve for a legal settlement. There was no similar legal matter in 2025.

•
Research, product development and regulatory expenses decreased by $9,501 for the year ended December 31, 2025, as compared to 2024. This is the result of improved resource management and cost controls focused on regulatory and product development studies, and by the decision to not further invest in the SIMPAS delivery system.

•
In 2025, the Company recorded a charge of $9,730 related to product liability claims primarily associated with its non-crop business. There was no similar matter in the prior year.

•
Transformation costs related to the Company’s digital and structural transformation project reduced dramatically, as expected, and ended at $7,187, as compared to $20,162 in the prior year. The Company expects that these costs will continue to decline in 2026.

•
Asset impairments of $25,395 include the impairment of the remaining goodwill of our international business in the amount of $21,040 as a result of changes in discount rate assumptions that were essentially general economic adjustments rather than changes in the expected future performance of the international businesses, PCNB related intangible assets in the amount of $1,668 and PCNB related manufacturing equipment in the amount of $2,459. During 2024, the Company took impairment charges in the amount of $50,414 primarily associated with impairment charges associated with goodwill, the determination that its investment in SIMPAS technology was impaired and with other intangible assets.

AVD undertook a strategic initiative to transform its entire enterprise into a platform for stronger growth and profitability. The Company engaged third party consultants

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/AVD/mda/fy2025/
All MD&A years: /company/AVD/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/AVD/mda/fy2024/): filed 2025-05-29; accession 0000950170-25-078615 (https://www.sec.gov/Archives/edgar/data/5981/000095017025078615/avd-20241231.htm)
- [FY 2023 MD&A](/company/AVD/mda/fy2023/): filed 2024-03-28; accession 0000950170-24-037524 (https://www.sec.gov/Archives/edgar/data/5981/000095017024037524/avd-20231231.htm)
- [FY 2022 MD&A](/company/AVD/mda/fy2022/): filed 2023-03-16; accession 0000950170-23-008438 (https://www.sec.gov/Archives/edgar/data/5981/000095017023008438/avd-20221231.htm)
- [FY 2021 MD&A](/company/AVD/mda/fy2021/): filed 2022-03-14; accession 0001564590-22-009941 (https://www.sec.gov/Archives/edgar/data/5981/000156459022009941/avd-10k_20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2870 Agricultural Chemicals) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/AVD.md · JSON record: /company/AVD.json · verified financials: /company/AVD/financials.json / /company/AVD/financials.csv · machine TOC for the whole site: /llms.txt