Record heat and drought in Europe impacted sales in addition to price pressure across all regions in off-patent products
BEIJING and TEL AVIV, Israel, Oct. 29, 2026 /PRNewswire/ -- ADAMA Ltd. (the "Company") $(000553)$, today reported its financial results for the third quarter & first nine-months ended September 30, 2026.
Third Quarter 2026 Highlights:
-- Sales declined 4% (-9% in RMB) to $897 million
-- Adjusted gross profit declined 11% to $228 million (margin of 25.4%) in
Q3 2026 vs. $257 million (margin of 27.6%) in Q3 2025
-- Adjusted EBITDA declined 22% to $93 million (margin of 10.4%) vs. $120
million (margin of 12.9%) in Q3 2025
-- Reported net loss reached $115 million vs. $48 million in Q3 2025;
Adjusted net loss reached $74 million vs. $20 million in Q3 2025
-- Operating cash inflow increased to $94 million in Q3 2026 vs. $89 million
in Q3 2025
-- Free cash inflow was $33 million in Q3 2026 vs. $22 million in Q3 2025
First Nine Months 2026 Highlights:
-- Sales declined 1% (-5% in RMB) reaching $2,997 million
-- Adjusted gross profit declined 2% to $860 million (margin of 28.7%) in 9M
2026 vs. $878 million (margin of 29.0%) in 9M 2025
-- Adjusted EBITDA declined 8% to $395 million (margin of 13.2%) vs $430
million (margin of 14.2%) in 9M 2025
-- Reported net loss reduced to $53 million from $59 million in 9M 2025;
Adjusted net profit declined to a loss of $11 million from a profit of
$29 million in 9M 2025
-- Operating cash inflow was $194 million in 9M 2026 vs. $331 million in 9M
2025
-- Free cash inflow was $87 million in 9M 2026 vs. $112 million in 9M 2025
Gaël Hili, President and CEO of ADAMA, said "ADAMA continues to advance its strategic priorities, strengthening its portfolio, sharpening its market focus, and building the operational foundation required to improve performance and efficiency. While pricing pressure continues across all regions in off-patent products, and the third quarter was marked by more challenging than expected market conditions with extreme weather in Europe, we are encouraged by the promising progress achieved in our strategic markets and product categories. Despite these challenging conditions, I am pleased to see the differentiated products' volumes growing in key markets as well as the discipline of the team in keeping its operating costs down to offset headwinds.
"As of November, I will be stepping away from the CEO position and continue to support ADAMA from the role of Chairman of the Board. As I make this transition, I do so with strong confidence in ADAMA's strategic direction, and in Dr. Zhigang Hao's leadership to build on this foundation and unlock the company's full potential while creating long-term value for its shareholders."
Table 1. Financial Performance Summary
As Reported Adjustments Adjusted
---------- ------------------ --------------------- ----------------------------
Q3 Q3 Q3 Q3 Q3 Q3
USD (m) 2026 2025 % Change 2026 2025 2026 2025 % Change
---------- -------- -------- -------- ---- ----- -------- -------- --------
Revenues 897 933 -4 % 0 0 897 933 -4 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Gross
profit 204 236 -14 % 24 22 228 257 -11 %
% of
sales 22.7 % 25.2 % 25.4 % 27.6 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Operating
income
(loss)
$(EBIT)$ (10) 30 41 26 31 56 -45 %
% of sales (1.2 %) 3.2 % 3.4 % 6.0 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Loss
before
taxes (68) (41) -65 % 42 29 (26) (11) -128 %
% of
sales (7.5 %) (4.4 %) (2.9 %) (1.2 %)
---------- -------- -------- -------- ---- ----- -------- -------- --------
Net loss (115) (48) 41 28 (74) (20)
% of
sales (12.8 %) (5.1 %) (8.2 %) (2.1 %)
---------- -------- -------- -------- ---- ----- -------- -------- --------
EPS
- USD (0.0492) (0.0206) (0.0317) (0.0086)
- RMB (0.3337) (0.1470) (0.2150) (0.0611)
---------- -------- -------- -------- ---- ----- -------- -------- --------
EBITDA 87 104 -16 % 6 16 93 120 -22 %
% of
sales 9.7 % 11.2 % 10.4 % 12.9 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
As Reported Adjustments Adjusted
---------- ------------------ --------------------- ----------------------------
9M 9M 9M 9M 9M 9M
USD (m) 2026 2025 % Change 2026 2025 2026 2025 % Change
---------- -------- -------- -------- ---- ----- -------- -------- --------
Revenues 2,997 3,025 -1 % 0 0 2,997 3,025 -1 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Gross
profit 777 792 -2 % 83 86 860 878 -2 %
% of
sales 25.9 % 26.2 % 28.7 % 29.0 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Operating
income
(EBIT) 163 155 5 % 44 81 207 237 -12 %
% of
sales 5.4 % 5.1 % 6.9 % 7.8 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Income
(loss)
before
taxes (11) (58) 81 % 44 91 33 33 -1 %
% of
sales (0.4 %) (1.9 %) 1.1 % 1.1 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
Net profit
(loss) (53) (59) 42 89 (11) 29
% of
sales (1.8 %) (2.0 %) (0.4 %) 1.0 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
EPS
- USD (0.0226) (0.0254) (0.0046) 0.0127
- RMB (0.1480) (0.1815) (0.0269) 0.0910
---------- -------- -------- -------- ---- ----- -------- -------- --------
EBITDA 417 378 10 % (22) 53 395 430 -8 %
% of
sales 13.9 % 12.5 % 13.2 % 14.2 %
---------- -------- -------- -------- ---- ----- -------- -------- --------
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 & 9M 2026 and 2025
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
During the first nine months of 2026, crop protection market volumes saw weaker than anticipated growth due to elevated farmer costs and just-in-time purchasing patterns, despite low channel inventories supporting healthy underlying crop protection demand. Additionally, crop protection pricing, particularly in the off-patent market, continued to remain under pressure, mainly due to lower farmer profitability, as well as persistently low active ingredient prices resulting from structural production overcapacity in China.
Overall market conditions varied across regions and crops, while farmer margins remained under pressure in many markets due to higher borrowing costs as well as higher fertilizer and fuel costs.
Geopolitical tensions and weather-related disruption continued to create uncertainty along the entire value chain from crop production, input costs and grower profitability.([1])
Strategy execution
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