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American Vanguard shares fall as revenue misses, guidance disappoints

Published 14/03/2025, 21:14
American Vanguard shares fall as revenue misses, guidance disappoints
AVD
-0.58%

NEW YORK - American Vanguard Corporation (NYSE:AVD) reported fourth-quarter revenue that missed analyst expectations and provided lower-than-anticipated guidance for fiscal year 2025, sending shares down 6% in trading Friday.

The agricultural products company posted Q4 revenue of $169 million, slightly below the consensus estimate of $169.55 million. For the full year 2024, American Vanguard generated revenue of approximately $550 million, or $563 million when excluding the impact of a product recall.

Looking ahead, the company forecast fiscal 2025 revenue between $565-585 million, below analyst projections of $585 million. American Vanguard also set an adjusted EBITDA target range of $45-52 million for 2025.

"While we are pleased to have achieved our 2024 EBITDA target, in my opinion this result is just the starting point for what is possible at this company," said CEO Douglas Kaye III. He added that the company believes it can achieve double-digit EBITDA growth over each of the next 3-4 years.

The company noted it took approximately $118 million in non-recurring cash and non-cash charges in 2024 as management repositions the business. Total (EPA:TTEF) debt was reduced to $156 million by year-end, down from $179 million at the end of Q3.

CFO David T. Johnson stated, "As we continue to right-size the business in the 4th quarter and have taken a total of approximately $118 million in non-recurring cash and non-cash charges in 2024 as we continue to strengthen our balance sheet and position American Vanguard for a return to growth in 2025."

American Vanguard expects capital expenditures of about $10 million in 2025 and anticipates improved free cash flow to be allocated towards debt reduction.

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