Third Quarter 2025 Highlights:
Stable Sales (0% in USD, 1% in RMB) of $933 million, reflecting the combined results of a 1% increase in volume and a 1% decrease in prices
Adjusted gross profit up 14% to $257 million, representing an improvement of gross margin to 27.6% from 24.2% last year, reflecting the benefits of lower costs and higher volumes
Adjusted EBITDA up 50% to $120 million, representing an improvement of EBITDA margin to 12.9% from 8.6% last year
Adjusted net loss reduced to $20 million from $78 million last year; Reported net loss improved by $85 million to $48 million compared to $133 million last year
First Nine Months 2025 Highlights:
Stable Sales (0% in USD, 1% in RMB) of $3,025 million, reflecting the combined results of a 3% increase in volume and a 3% decrease in prices
Adjusted gross profit up 12% to $878 million, representing an improvement of gross margin to 29.0% from 25.8% last year, reflecting the benefits of lower costs and higher volumes
Adjusted EBITDA up 30% to $430 million, representing an improvement of EBITDA margin to 14.2% from 11.0% last year
Adjusted net income turned positive to $29 million compared to a loss of $149 million last year; Reported net loss improved by $200 million to $59 million compared to $259 million last year
Operating cash flow of $331 million generated vs. $402 million last year
Free cash flow of $112 million vs. $179 million last year
Gaël Hili, President and CEO of ADAMA, said, "In the third quarter, we continued to deliver improved financial results with stable sales and our sixth consecutive quarter of year-over-year EBITDA growth, clear indicators that our Fight Forward transformation plan is delivering results in support of our value innovation strategy. We remain focused on strengthening our operational foundations, enhancing commercial execution, and driving innovation across our portfolio, delivering meaningful impact for farmers and positioning ADAMA for sustainable, long-term profitable growth."
Table 1. Financial Performance Summary
USD (m)
As Reported
Adjustments
Adjusted
Q3
2025
Q3
2024
% Change
Q3
2025
Q3
2024
Q3
2025
Q3
2024
% Change
Revenues
933
929
0 %
-
-
933
929
0 %
Gross profit
236
188
25 %
22
37
257
225
14 %
% of sales
25.2 %
20.2 %
27.6 %
24.2 %
Operating income (loss) (EBIT)
30
(34)
26
46
56
13
343 %
% of sales
3.2 %
(3.6 %)
6.0 %
1.4 %
Loss before taxes
(41)
(122)
67 %
29
51
(11)
(72)
84 %
% of sales
(4.4 %)
(13.2 %)
(1.2 %)
(7.7 %)
Net loss
(48)
(133)
64 %
28
55
(20)
(78)
74 %
% of sales
(5.1 %)
(14.3 %)
(2.1 %)
(8.4 %)
EPS
- USD
(0.0206)
(0.0569)
(0.0086)
(0.0335)
- RMB
(0.1470)
(0.4049)
(0.0611)
(0.2382)
EBITDA
104
56
87 %
16
24
120
80
50 %
% of sales
11.2 %
6.0 %
12.9 %
8.6 %
USD (m)
As Reported
Adjustments
Adjusted
9M
2025
9M
2024
% Change
9M
2025
9M
2024
9M
2025
9M
2024
% Change
Revenues
3,025
3,028
0 %
-
-
3,025
3,028
0 %
Gross profit
792
672
18 %
86
110
878
782
12 %
% of sales
26.2 %
22.2 %
29.0 %
25.8 %
Operating income (EBIT)
155
1
81
136
237
137
73 %
% of sales
5.1 %
0.0 %
7.8 %
4.5 %
Income (loss) before taxes
(58)
(203)
71 %
91
116
33
(87)
% of sales
(1.9 %)
(6.7 %)
1.1 %
(2.9 %)
Net income (loss)
(59)
(259)
77 %
89
110
29
(149)
% of sales
(2.0 %)
(8.5 %)
1.0 %
(4.9 %)
EPS
- USD
(0.0254)
(0.1110)
0.0127
(0.0638)
- RMB
(0.1815)
(0.7890)
0.0910
(0.4535)
EBITDA
378
252
50 %
53
80
430
332
30 %
% of sales
12.5 %
8.3 %
14.2 %
11.0 %
Notes:
"As Reported" denotes the Company's financial statements according to the Accounting Standards for Business Enterprises and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the Chinese Ministry of Finance (the "MoF) (collectively referred to as "ASBE"). Note that in the reported financial statements, according to the ASBE guidelines [IAS 37], certain items (specifically certain transportation costs and certain idleness charges) are classified under COGS. Please see the appendix to this release for further information.
Relevant income statement items contained in this release are also presented on an "Adjusted" basis, which exclude items that are of a transitory or non-cash/non-operational nature that do not impact the ongoing performance of the business and reflect the way the Company's management and the Board of Directors view the performance of the Company internally. The Company believes that excluding the effects of these items from its operating results allows management and investors to effectively compare the true underlying financial performance of its business from period to period and against its global peers. A detailed summary of these adjustments appears in the appendix below.
The number of shares used to calculate both basic and diluted earnings per share in both Q3 and 9M 2025 and 2024 is 2,329.8 million shares.
In this table and all tables in this release numbers may not sum due to rounding.
The General Crop Protection (CP) Market Environment
Through the first nine months of 2025, channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.[1]
Portfolio Development Update
In the third quarter 2025, ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. As part of the Fight Forward transformation plan, the Company is focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment, with the intent of improving value delivered to all stakeholders.
In Q3 2025, launches of differentiated products included:
FERRABAIT®, a patented molluscicide composition based on the active ingredient FERALLA®, has been launched in New Zealand for use in arable, horticultural, and ornamental crops.
COSAYR®, a long-lasting Chlorantraniliprole-based suspension, has been launched in Canada, Hungary, and Argentina (as CARTADO®), to deliver fast and effective control of chewing insects across a wide range of horticultural and field crops.
Notable differentiated product registrations during Q3 2025 included:
PORAFAM®, an herbicide aqueous solution with Aminopyralid as the active ingredient, has been registered in Germany. This marks ADAMA's first registration of an Aminopyralid-based formulation in Europe.
The active substance FERALLA® was registered UK
COSAYR® was registered in Austria, France, Spain and Greece
AVASTEL® a broad-spectrum fungicide utilizing Asorbital Formulation Technology and combining the active ingredients Prothioconazole and Fluxapyroxad, has been officially registered in Germany.
EDAPTIS® has been registered in Germany. This innovative post-emergence herbicide combines Pinoxaden and Mesosulfuron-methyl to provide effective control of a broad spectrum of grasses, including resistant populations, with a patented formulation that ensures stable and reliable performance.
REXARO® a fungicide suspension containing Cymoxanil and Fluopicolide, has been registered in Ghana.
ETHOSAT®, an herbicide suspension based on Ethofumesate active ingredient, has been registered in Finland.
In addition, patents granted during Q3 2025 included GILBOA® mixtures patents in multiple countries including Europe and US, and Gilboa formulation patents in the US and Columbia. Gilboa is a proprietary fungicide having a new mode of action for use in cereals. As well, BAROZ™, a unique granular formulation for reliable rice stem borer control, was patented in Colombia and Indonesia.
Geopolitical Situation
ADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions which escalated on October 7, 2023, continued to have no material impact to-date on the Company's ability to support its markets or its consolidated financial results.
ADAMA is a global company with manufacturing and formulation facilities in several locations around the world, principally in Israel, China and Brazil. The Company's management appointed a dedicated task force to analyze implications of US tariff policies and to closely monitor and manage the situation and the potential impact on its global network. Despite the uncertainty regarding the US tariff policies, the Company currently expects that the impact on its operations and business results will be immaterial.
'Fight Forward' Transformation Plan
In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan designed to deliver improved profit and cash targets over a three-year period. The plan optimizes financial management, streamlining ADAMA's operating model in order to increase focus on the Value Innovation segment in which differentiated, high-impact solutions are developed to deliver greater value to farmers.
Financial Highlights
Revenues in the third quarter were stable (1% in RMB; 0% in CER) reaching $933 million, mainly reflecting the combined results of a 1% increase in volume and a 1% decrease in prices. The higher volumes reflected the gradual recovery of market demands and improvement of channel inventories in most regions. Prices remained weak mainly due to low prices of active ingredients in light of overcapacity, as well as a high interest rate environment and low commodity prices, which put pressure on distributors and farmers.
Revenues in the first nine months were also stable (1% in RMB; 1% in CER) reaching $3,025 million. The stabilization of revenues in the first nine months was driven by volume growth of 3% offsetting a decrease in prices of 3%.
Table 2. Regional Sales Performance
Q3 2025
$m
Q3 2024
$m
Change
USD
Change
CER
9M 2025
$m
9M 2024
$m
Change
USD
Change
CER
Europe, Africa & Middle East
233
216
8 %
3 %
903
911
(1 %)
(2 %)
North America
164
158
4 %
4 %
659
572
15 %
16 %
Latin America
312
287
9 %
8 %
675
687
(2 %)
1 %
Asia Pacific
225
269
(16 %)
(15 %)
789
859
(8 %)
(7 %)
Of which China
91
109
(17 %)
(16 %)
400
384
4 %
4 %
Total
933
929
0 %
(0 %)
3,025
3,028
(0 %)
1 %
Notes:
‒ CER: Constant Exchange Rates
‒ As part of ADAMA's business optimization program, on January 1, 2025, ADAMA's South Africa business was reclassified from APAC operations to EAME operations. To enable meaningful comparisons, the 2024 data presented here includes South Africa under EAME.
‒ Numbers may not sum due to rounding
Europe, Africa & Middle East (EAME): Volumes and revenue in EAME increased in the third quarter, though significant Q1 declines in Turkey impacted the year-to-date results. Pricing continued to decline in light of intense competition. Foreign exchange rates had positive impact in the third quarter.
North America: In the US Ag market, though slightly down in the third quarter, was significantly up in the first nine months following improvements in volumes and prices. Similarly in Canada, while the third quarter was flat with an increase in volume offset by a decrease by prices, for the nine months volumes are significantly up. Consumer & Professional Solutions experienced increased volumes and flat prices for both the third quarter and year-to-date.
Latin America: In Brazil, revenues were significantly up in the third quarter, resulting in higher revenues also for the first nine months compared to the previous year. Growth was driven by increased volumes, while the third quarter also experienced modest pricing increases. In the rest of LATAM lower volumes, prices, and revenues were reported in the third quarter and the first nine months, primarily in Paraguay and Argentina, due to channel destocking and just-in-time purchasing behavior.
Asia-Pacific (APAC): India experienced significant declines in the third quarter revenues, primarily due to lower volumes driven by extreme weather conditions and lower prices. In the rest of APAC (excluding India and China), sales and volumes were slightly up for the quarter, despite ongoing pricing pressures.
In China, sales in the third quarter mainly reflected the impacts of lower non-ag sales, partially compensated by the increase of AI sales. Non-ag sales declined following implementation of the company's strategic decision to pivot away from manufacturing some basic chemical products, and weaker market demands. Higher AI sales were driven by volume growth due to the expansion of new distribution channels and supported by the recovery of global demand. Sales of the formulations business stabilized, still reflecting relatively high channel inventories and severe market competition. Supported by the growth in the first half, sales in China in the first nine months increased compared to last year.
Reported gross profit in the third quarter increased 25% to $236 million (gross margin of 25.2%) from $188 million (gross margin of 20.2%) last year, and increased 18% to $792 million (gross margin of 26.2%) in the first nine months from $672 million (gross margin of 22.2%) last year.
Adjustments to reported results: The adjusted gross profit mainly includes reclassification of inventory impairment, taxes and surcharge, and excludes certain transportation costs (classified under operating expenses) and the remediation costs by a wholly owned subsidiary for its plant in Israel.
Adjusted gross profit in the third quarter increased 14% to $257 million (gross margin of 27.6%) from $225 million (gross margin of 24.2%) last year, and increased 12% to $878 million (gross margin of 29.0%) in the first nine months from $782 million (gross margin of 25.8%) last year.
The higher adjusted gross profit and margin in the quarter and first nine months mainly reflected the positive impacts of lower costs due to improved operational efficiency and lower costs of inventory sold as well as higher volume, more than compensating for lower prices.
Operating expenses reported in the third quarter were $205 million (22.0% of sales), compared to $222 million (23.9% of sales) last year, and were $636 million (21.0% of sales) in the first nine months compared to $671 million (22.2% of sales) last year.
Adjustments to reported results: Please refer to the explanation above regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. Non-operating income and expenses are also reclassified into adjusted operating expenses.
The Company recorded certain non-operational items within its reported operating expenses amounting to $26 million in the third quarter of 2025 in comparison to $37 million in the third quarter of 2024 and $73 million in the first nine months 2025 in comparison to $113 million in the first nine months 2024. These items in 2025 mainly include: i. non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition; ii. non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions; and iii. restructuring and advisory costs incurred as part of the implementation of the Fight Forward transformation plan. For further details on these non-operational items, please see the appendix to this release.
Adjusted operating expenses in the third quarter were $201 million (21.5% of sales), compared to $212 million (22.8% of sales) last year, and were $641 million (21.2% of sales) in the first nine months compared to $645 million (21.3% of sales) last year.
The lower operating expenses in the third quarter was mainly due to a credit loss recorded last year, which compensated for an increase in expenses attributed to company success-based employee compensation due to improved 2025 results to-date. For the first nine months, the positive impacts following implementation of the Fight Forward plan more than compensated for expected credit losses due to liquidity issues of some local distributors in certain countries.
Reported operating income in the third quarter was $30 million (3.2% of sales) compared to a loss of $34 million (-3.6% of sales) last year, and increased to $155 million (5.1% of sales) in the first nine months from $1 million (0.0% of sales) last year.
Adjusted operating income in the third quarter increased to $56 million (6.0% of sales) from $13 million (1.4% of sales) last year, and increased to $237 million (7.8% of sales) in the first nine months from $137 million (4.5% of sales) last year. The increase in operating income was a combined result of higher gross profit and lower operating expenses.
Reported EBITDA in the third quarter increased to $104 million (11.2% of sales) from $56 million (6.0% of sales) last year, and increased to $378 million (12.5% of sales) in the first nine months from $252 million (8.3% of sales) last year.
Adjusted EBITDA in the third quarter increased to $120 million (12.9% of sales) from $80 million (8.6% of sales) last year, and increased to $430 million (14.2% of sales) in the first nine months from $332 million (11.0% of sales) last year.
Adjusted financial expenses decreased to $68 million in the third quarter compared to $84 million last year, and decreased to $204 million in the first nine months compared to $224 million last year.
The lower financial expenses in both the third quarter and the first nine months were primarily positively impacted by a bond buyback that was executed in late Q2, as well as the lower hedging costs related to the Israeli Shekel.
Adjusted taxes on income in the third quarter were an expense of $8 million, compared to expenses of $6 million in the corresponding period last year, and amounted to an expense of $4 million in the first nine months compared to expenses of $61 million last year.
The Company recorded tax expenses mainly because losses that were primarily incurred by subsidiaries with relatively lower tax rates, while some of them did not create deferred tax assets on the losses. On the other hand, the subsidiaries that generated profit have a higher tax rate.
The tax expenses in first nine months of 2025 are lower compared to the first nine months of 2024 due to (1) lower losses in subsidiaries that did not create deferred tax assets; (2) tax income raised by the accounting method of calculation of tax assets related to unrealized profits; and (3) foreign exchange impact of the stronger BRL in 2025 compared with tax expenses due to the weakness of the BRL in the first nine month of 2024.
Net loss reported in the third quarter narrowed to $48 million from $133 million last year, and narrowed to $59 million in the first nine months from $259 million last year.
After reflecting the impact of the aforementioned extraordinary and non-operational charges, adjusted net loss in the third quarter was reduced to $20 million from a loss of $78 million last year, and adjusted net income in the first nine months turned positive to $29 million ...
