ADAMA Reports First Quarter 2026 Results

Sales growth with improvement in net profit BEIJING and TEL AVIV, Israel , April 29, 2026 /PRNewswire/ — ADAMA Ltd. (the “Company”) (SZSE: 000553), today reported its financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights: Sales increased 4% (0.5% in RMB) to $1,037 million, mainly reflecting a 3% increase in volumes Adjusted gross profit up 5% to $318 million, with an improvement in gross margin from 30.3% in Q1 2025 to 30.6% in Q1 2026, reflecting the benefits of higher volumes and improved business quality Reported net profit increased 2.9 times to $82 million vs $21 million in Q1 2025; Adjusted net profit increased 35% to $59 million from $44 million in Q1 2025 Adjusted EBITDA amounted to $150 million vs $160 million in Q1 2025 Operating cash outflow was -$141 million in Q1 2026 vs. -$29 million in Q1 2025 Free cash outflow was -$139 million in Q1 2026 vs. -$86 million in Q1 2025 Gaël Hili, President and CEO of ADAMA , said “The strong foundation built through our Fight Forward transformation plan now provides the base for the next phase of our strategy execution, focused on profitable growth. In the first quarter of 2026, ADAMA delivered sales and gross profit growth and higher net income, reflecting improved volumes and continued progress in portfolio quality. At the same time, profitability and cash generation in the quarter were affected by higher operating expenses and increased working capital, reflecting investments to support growth and inventory build up to capture recovering market momentum. I remain confident that ADAMA is well positioned to capture market opportunities and deliver sustainable long-term value for our customers and investors.” Table 1. Financial Performance Summary USD (m) As Reported Adjustments Adjusted Q 1 2026 Q 1 2025 % Change Q 1 2026 Q 1 2025 Q 1 2026 Q 1 2025 % Change Revenues 1,037 1,000 4 % 0 0 1,037 1,000 4 % Gross profit 287 272 6 % 30 31 318 303 5 % % of sales 27.7 % 27.2 % 30.6 % 30.3 % Operating income (EBIT) 110 70 57 % (22) 26 88 96 -8 % % of sales 10.6 % 7.0 % 8.5 % 9.6 % Income before taxes 60 18 228 % (22) 23 38 42 -8 % % of sales 5.8 % 1.8 % 3.7 % 4.2 % Net profit 82 21 289 % (23) 23 59 44 35 % % of sales 7.8 % 2.1 % 5.7 % 4.4 % EPS – USD 0.0352 0.0090 0.0253 0. 0188 – RMB 0.2443 0.0649 0.1760 0.1350 EBITDA 182 144 27 % (33) 16 150 160 -6 % % of sales 17.6 % 14.4 % 14.5 % 16.0 % 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 Q1 202 6 and 202 5 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 Recent geopolitical developments are introducing market volatilities that could prove either transitory or structural as events unfold, with higher oil prices posing a potential inflationary pressure on the market and potentially pressuring farmer profitability. While channel demand has rebounded in 2025 and inventory levels have largely returned to pre–pandemic norms, in the first quarter of 2026 pricing pressures remain elevated due to persistent oversupply and production over–capacity of active ingredients. Crop commodity prices are stabilizing at relatively low levels but remain sensitive to geopolitical risks, limiting upside for farmer income. As a result, ongoing pressure on farmer profitability continues to drive just–in–time purchasing behavior, even as volumes normalize across most markets, after growth achieved in the market in 2025. 1 Strategy execution In 2026 ADAMA entered the next phase of its strategy execution, building on the achievements of the Fight Forward program. With a stronger cost base, better operational efficiency, and enhanced capabilities, the Company is now focused on driving profitable top-line growth while continuing to improve business quality. ADAMA aims to deliver this by strengthening commercial capabilities, accelerating differentiated innovation, improving portfolio quality, and shaping a lighter and competitive global supply and manufacturing network. Sustainability ADAMA has published its 2025 ESG Report, highlighting progress across key ESG areas, including a 21% reduction in Scope 1 and Scope 2 greenhouse gas emissions and the training of more than 680,000 farmers and agricultural workers on the safe and responsible use of crop protection products. This progress reflects continued efforts to improve operational efficiency, strengthen safety and stewardship practices, and manage ESG-related risks across the business. For further details, please refer to the full ESG Report released on the 29 th of April, 2026. Portfolio development update During Q1 2026 ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. The Company continued to focus on advanced, value–driven formulations supporting optimization of its product portfolio. Q1 2026 launches of differentiated products included: FORABAZ ® (India): Launched as an SC (suspension concentrate) formulation combining Chlorantraniliprole and Novaluron. It provides fruit and vegetable growers with early and long-lasting caterpillar control, supporting yield protection and resistance management. BREVIS TM SC (Canada): A novel Metamitron-based plant growth regulator delivering consistent and reliable fruitlet thinning in pome fruits such as apples and pears. MARATHON ® (Australia): ADAMA’s first high-load Pyrasulfotole formulation with an in-built crop safener. Marathon delivers early post-emergence control of challenging and herbicide-resistant weeds in wheat and barley, with flexible tank-mix options and robust performance for yield protection and resistance management. ATEKA TM (USA): Ateka insecticide is a high-load, Spirotetramat based, fully systemic solution designed to help fruit and vegetable growers clean out tough sucking pests with speed and staying power. Powered by the proprietary AyalonTM Formulation Technology, Ateka enhances leaf penetration and plant uptake, delivering earlier population control and enhanced performance. COSAYR ® (Germany, Poland, Romania and Czech Republic): A long-lasting Chlorantraniliprole-based suspension, to deliver fast and effective control of chewing insects across a wide range of horticultural and field crops. Prothioconazole-based Products Expansion: ADAMA continued to extend its Prothioconazole-based portfolio, launching several combinations and solo formulations across EU and other key markets. Products such as MAGANIC ® , MAXENTIS ® , AVASTEL, and SORATEL ® leverage ADAMA’s proprietary ASORBITAL ® Formulation Technology for enhanced uptake and systemic performance. Notable differentiated product registrations included: GALIL ® nano (Brazil): ADAMA’s Bifenthrin and Imidacloprid SC insecticide with nanotechnology-enhanced coverage, delivering reliable control of stink bugs and corn leafhoppers in soybean and corn across diverse weather conditions. TELAVEX ® (Germany and Belgium): A powerful OD formulation for corn that combines Mesotrione and Thiencarbazone-methyl with a safener to deliver robust control of grass and broad-leaf weeds for both pre- and early post-emergence application. SPIROTETRAMAT Active ingredient (India): Registration approved, enabling ADAMA to advance its insect control solutions in key crops across the Indian market. PLEMAX ® (Israel): A dual-mode-of-action SC insecticide combining Novaluron and Indoxacarb, Plemax delivers robust knockdown and residual control of key chewing pests in brassicas, leafy, and fruiting vegetables, protecting yield and supporting resistance management. EDAPTIS ® (Hungary and Belgium): An innovative post-emergence herbicide that 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. SAFLIX ® (Argentina): Easy-to-use liquid Saflufenacil formulation that delivers enhanced control of tough broadleaf weeds LEAXO ® (Germany): A universal systemic insecticide based on Acetamiprid, providing a reliable solution for the protection of rapeseed, cereals, beetroot and potatoes. In addition, patents granted during Q1 2026 included ones for Gilboa Liquid composition in Brazil and Japan, in addition to synthetic processes in India and Israel, as well as patents for Chlorantraniliprole process in Brazil, Korea and Israel. Geopolitical Situation ADAMA is a global company with manufacturing and formulation facilities in several locations around the world, principally in Israel, China and Brazil. It is headquartered and has three manufacturing sites in Israel. Despite regional tensions that have escalated more recently on February 28, 2026, the Company’s Israeli production sites and supply chain, including ports, continued to operate without significant delays allowing the Company to support its markets, and ongoing activities. During March and early April 2026, the Company’s Neot Hovav site suffered limited and localized damage caused by falling debris following missile interceptions in the southern region of Israel. No bodily injuries were reported, and an immediate safety-driven closure of the facilities was carried out, followed by a phased shutdown, also for safety reasons. The Company initiated comprehensive damage assessments. The direct damage to its core production facilities was not meaningful and was primarily limited to a finished goods warehouse, certain ancillary equipment and systems and an open storage area. Thereafter, the Company undertook certain restoration activities, and as of the date of this release Neot Hovav site has mostly returned to normal operational status with the remaining facilities undergoing a safe and orderly repair process, expected to be completed within the next few weeks, with full restoration to optimal production capacity anticipated soon thereafter. The Company currently expects the overall impact of these occurrences to be non-material. ADAMA’s global production operations have continued largely uninterrupted, except for the abovementioned occurrences, with no material impact expected on production or business continuity. Additionally, in respect to changes in global tariff policies, the Company’s management appointed a dedicated task force to analyze implications of global tariff policies on ADAMA and its sector, and to closely monitor and manage the situation and the potential impact on ADAMA’s global network. Despite the uncertainty regarding changes to trade and tariff policies around the world, the Company currently expects that the impact on its operations and business results will continue to be immaterial. Financial Highlights Revenues in the first quarter increased by approximately 4% (0.5% in RMB; -1% in CER) to $1,037 million compared to last year, reflecting 3% increase in volumes and positive foreign exchange impacts, partially offset by 4% decrease in prices. In the first quarter, sales increased reflecting higher volumes and improved demand in the market, supported by new product introductions while the Company reduced the manufacturing and sale of certain basic chemicals and low-margin products. Lower prices reflected the overall lower market pricing and weaker farmer purchasing power. Table 2. Regional Sales Performance Q1 2026 $m Q1 2025 $m Change USD Change CER Europe, Africa & Middle East 406 356 14 % 5 % North America 237 219 8 % 8 % Latin America 144 147 (2 %) (7 %) Asia Pacific 249 278 (10 %) (12 %) Of which China 134 166 (19 %) (21 %) Total 1,037 1,000 4 % (1 %) Notes: CER: Constant Exchange Rates Numbers may not sum due to rounding Europe, Africa & Middle East (EAME): Strong growth in sales led by higher volumes in Europe building on the momentum gained in the close out to 2025. Higher sales were achieved following good market positioning in an overall positive market, mainly in off-patent products, and despite varied weather conditions and intense market competition. North America: In the North America Ag market, higher sales volume in the first quarter was supported by good market positioning in a price sensitive market with positive momentum on product launches (ex CAZADOTM) and pre-seed presence despite pressured farmer profitability and high competition in commodity products. In Consumer & Professional Solutions in the first quarter on the Consumer side sales increased supported by favorable spring weather, and low retailer inventories. On the Professional side, sales were impacted by just-in-time purchasing patterns and lower pricing mainly in commoditized products. Latin America: In Brazil , sales were slightly lower reflecting a major decline in market pricing against the backdrop of lower farmer profitability and high competition in all segments and especially in commodity products. The lower pricing was mostly offset by an increase in volumes due to seizing market opportunities and experiencing good Soybean and the Winter Corn seasons. In the rest of LATAM sales in the first quarter were lower than prior year, driven primarily by a decline in market pricing against the backdrop of lower farmer profitability and oversupply in the market. Asia-Pacific (APAC): The sales in India increased in the first quarter supported by favorable weather conditions. In the rest of APAC (excluding India and China) , sales in the first quarter were impacted by just-in-time purchasing patterns despite favorable weather as well as lower pricing and high competition in commoditized products. In China , sales declined mainly reflecting the Company’s decision to reduce manufacturing and sale of certain basic chemicals and low-margin products, as well as time-phasing of customized AI products . The decline was partially compensated by higher sales of brand formulations, driven by new product launches and improved market penetration. Reported gross profit in the first quarter increased 6% to $287 million (gross margin of 27.7%) compared to $272 million (gross margin of 27.2%) last year. Adjustments to reported results : The adjusted gross profit includes mainly reclassification of inventory impairment, taxes and surcharge and excludes certain transportation costs (classified under operating expenses). A djusted gross profit in the first quarter increased 5% to $318 million (gross margin of 30.6%) compared to $303 million (gross margin of 30.3%) last year. Gross profit and its margin improved in the first quarter, mainly reflecting favorable foreign exchange impacts as well as higher sales and improved quality of the business, more than compensating for lower prices and cost increase. Reported operating expenses in the first quarter were $178 million (17.1% of sales) compared to $202 million (20.2% of sales) last year. Adjustments to reported results : Please refer to the explanation regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. The Company recorded certain non-operational items within its reported operating expenses amounting to an income of $24 million in Q1 2026 in comparison to expenses of $25 million in Q1 2025. These items in 2026 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 … Full story available on Benzinga.com