American Vanguard Sales Fall to $108.376 Million as Third-Quarter Losses Widen
Key Facts
American Vanguard reported net sales of $108.376 million in the three months ended September 30, 2026, compared with $119.313 million in the same period a year earlier, according to its filing with the U.S. Securities and Exchange Commission. Sales fell as gross profit declined to $26.252 million from $34.214 million. The operating loss widened to $7.965 million, compared with a loss of $6.505 million a year earlier. The figures show a decline in revenue and operating profitability during the quarter, while the company said lower international sales and weather pressures outside the United States contributed to weaker performance. The stock closed at $0.9627 on November 6, according to EL7 data.
Losses extended to results for the first nine months of the year, with a net loss of $31.682 million, or $1.10 per share, through September 30, 2026. In the corresponding period of 2025, the company reported a net loss of $21.669 million, or $0.76 per share. The nine-month figures therefore show a larger year-over-year loss, according to the company’s filing. This measure gives a broader picture than the quarterly result alone, combining the company’s performance from the start of the year through the end of September. The larger loss also coincided with a higher financing burden as the company seeks to manage its debt and reorganize its operations.
The company attributed the higher interest burden to a new financing structure that took effect on March 13, 2026. In its filing, it said it refinanced its revolving credit facility with term loans, raising its effective interest rate. Average debt in the first nine months was $261.293 million, compared with an average of $197.097 million in the same period of 2025. Interest expense rose to $24.066 million from $13.135 million year over year. The comparison reflects increases in both debt and financing expense, while the company said borrowing costs rose under the new loan structure.
The company, meanwhile, reported a cash balance of $83.909 million on September 30, 2026, compared with $16.795 million at the end of 2025. The increase in cash came alongside nine-month losses and higher interest expense, but does not change the company’s reliance on operating results to support its financial obligations. Management said its ability to comply with the first-lien term loan’s leverage covenant depends on generating substantial adjusted earnings before interest, taxes, depreciation and amortization in the fourth quarter of 2026. It added that it cannot guarantee it will achieve a sufficient level of those earnings. The requirement puts fourth-quarter performance at the center of the company’s ability to remain in compliance with the financial covenant.
The company also faces costs related to reorganizing its Los Angeles plant, which it said it expects to complete by December 31, 2026. Reorganization costs totaled $3.341 million in the nine months ended September 30. The announced deadline makes year-end a near-term milestone in the facility reorganization plan, while the costs recorded add to the pressures reflected in results through September. Monitoring loan covenant compliance and fourth-quarter earnings will remain tied to performance over the same period, according to the company’s filing. Management expects the plant reorganization to be completed before the end of 2026.