ADAMA Q3 Sales Fall 4% to $897 Million as Net Loss Widens

ADAMA Ltd. reported a 4% decline in third-quarter 2026 sales to US$897 million on October 29, 2026, according to the company’s third-quarter and first-nine-months earnings release, as the crop protection company’s reported net loss widened to $115 million and President and CEO Gaël Hili announced he will step away from the chief executive role as of November.

The Shenzhen Stock Exchange-listed company said the quarter’s revenue decline, a 9% drop in renminbi terms, reflected 4% lower volumes and 2% lower prices, partially compensated by a positive foreign-exchange impact. Volumes fell on lower market demand in certain regions due to higher farmer costs and weather conditions, partially offset by new product introductions, while lower prices reflected overall weaker market pricing and farmer purchasing power, the company stated.

Adjusted gross profit declined 11% to $228 million, a margin of 25.4%, from $257 million and a 27.6% margin in the third quarter of 2025. Adjusted EBITDA fell 22% to $93 million, or 10.4% of sales, from $120 million, or 12.9%. The adjusted net loss reached $74 million versus $20 million a year earlier, while the reported net loss of $115 million compared with $48 million. Reported loss per share was $0.0492 versus $0.0206, and adjusted loss per share was $0.0317 versus $0.0086, based on 2,329.8 million shares. The company defines adjusted results as excluding items of a transitory or non-cash, non-operational nature.

For the first nine months of 2026, sales declined 1% to $2,997 million from $3,025 million. Adjusted gross profit declined 2% to $860 million, a 28.7% margin, and adjusted EBITDA declined 8% to $395 million, a 13.2% margin. The reported nine-month net loss narrowed to $53 million from $59 million, while the adjusted result moved to a loss of $11 million from a profit of $29 million. Excluding the effect of its decision in the third quarter of 2025 to reduce the manufacture and sale of certain basic chemicals, the company said nine-month sales would have increased 1%; third-quarter sales were already on a comparable basis.

Operating cash inflow was $94 million in the quarter versus $89 million a year earlier, and free cash inflow was $33 million versus $22 million. For the nine months, operating cash inflow fell to $194 million from $331 million, which the company attributed mainly to lower collections of basic chemicals and timing differences, partially offset by lower procurement, while free cash inflow was $87 million versus $112 million. Trade working capital stood at $2,183 million at September 30, 2026, versus $2,093 million a year earlier; cash at bank and on hand was $363 million versus $526 million; and total assets were $6,651 million versus $7,027 million. Adjusted financial expenses decreased to $57 million in the quarter from $68 million, and adjusted taxes on income were an expense of $48 million versus $8 million, reflecting in part an adjustment to the company’s tax asset in Brazil.

Europe Sales Fall 13% While North America Gains 6%

Europe, Africa and Middle East sales fell 13% to $203 million in the quarter, which the company attributed to significantly weaker market consumption and lower crop-protection applications across several European markets, where weather impacts created channel inventory build-up alongside elevated farmer input costs; market-share gains partly mitigated the decline. North America sales rose 6% to $174 million on growth across Professional Solutions, Consumer and Canada. Latin America sales fell 8% to $286 million as a decline in Brazil, tied to continued pricing pressure, farmer liquidity constraints and intense competition, outweighed growth in the rest of the region, particularly Argentina. Asia-Pacific sales rose 4% to $235 million; within the region, China sales rose 9% to $99 million in the quarter, while nine-month China sales fell 16% to $337 million, reflecting the reduced manufacturing and sale of certain basic chemicals.

Crop Protection accounted for $819 million, or 91%, of third-quarter sales, with Intermediates and Ingredients contributing $78 million. By product category, herbicides generated $364 million, insecticides $299 million, fungicides $156 million, and intermediates and ingredients $78 million.

Hili to Continue as Chairman

“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,” Hili said in the release. He expressed “strong confidence in ADAMA’s strategic direction, and in Dr. Zhigang Hao’s leadership,” and described continued pricing pressure across all regions in off-patent products and a third quarter marked by more challenging than expected market conditions, including extreme weather in Europe.

The company said its strategy prioritizes four sources of value: portfolio differentiation, enhanced commercial capabilities, a shift to a more competitive, flexible and asset-light supply and manufacturing network, and improved organizational design, processes and systems. It said it remains focused on improving margins, generating cash, maintaining cost control and directing investment toward the highest-return opportunities.

ADAMA launched 31 new products and received 70 new product registrations in the first nine months of 2026. Third-quarter launches included the REXARO fungicide and the ACTAGON pre-emergence wheat herbicide in India, the RAVARI insecticide in Mexico and the PORAFAM Titan kit in Germany; notable registrations included SPARTA in Brazil, PARAMER SC in Argentina and FERRABAIT in Latvia, that product’s first European Union registration.

The company’s Neot Hovav site in Israel suffered limited, localized damage from falling debris following missile interceptions during March and early April 2026, with no bodily injuries reported; the release stated the site has returned to normal operational status and that the company expects the overall impact to be non-material, also due to appropriate compensation from governmental authorities. ADAMA also stated it currently expects the impact of changes in global tariff policies on its operations and business results to remain immaterial.

Non-operational items within reported operating expenses amounted to an expense of $37 million in the third quarter and income of $36 million in the nine months, including non-cash amortization related to transfer assets received from Syngenta in connection with the 2017 ChemChina-Syngenta acquisition, fixed-asset impairments tied to operational efficiency, restructuring costs and a capital gain from the sale of a subsidiary’s logistics center in Israel. The restructuring costs relate to the Fight Forward transformation plan the company initiated in early 2024.