American Vanguard Corporation reported net sales of $115.8 million for the first quarter ended March 31, 2025, a 14% decrease compared to $135.1 million in Q1 2024. The company recorded a net loss of $8.46 million, or $0.30 per share, a significant decline from net income of $1.55 million, or $0.06 per share, in the prior-year period. Adjusted EBITDA for the quarter was $3 million, down from $15.5 million in Q1 2024.
The decline was attributed to continued destocking by channel partners, the absence of sales from the voluntarily canceled Dacthal product, weakness in the Mexican agave market, and drought conditions in Australia. Gross profit margin fell to 26% from 31% in Q1 2024, primarily due to a weaker pricing environment and lower volume.
Despite top-line pressures, operating expenses decreased by $5 million, and net trade working capital improved by $85 million year-over-year to $153 million. Total debt stood at $167 million, down from $187 million a year prior. The company revised its full-year 2025 guidance downwards, now expecting net sales of $535-$545 million (from $565-$585 million) and adjusted EBITDA of $40-$44 million (from $45-$52 million), reflecting a cautious outlook on market recovery.
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