ADAMA (000553) investor relations material

Executive summary

• Achieved fifth consecutive quarter of EBITDA growth, with Q2 2025 EBITDA up 19–19.3% year-over-year and H1 up nearly 20%, driven by operational efficiency and lower inventory costs.

• Q2 2025 sales increased 3% year-over-year, marking the first top-line growth since Q3 2022, driven by 6% volume growth despite a 3% price decline.

• Adjusted net loss in Q2 narrowed to $8 million from $54 million, and H1 adjusted net profit reached $22 million versus a $69 million loss in H1 2024.

• Free cash flow for H1 improved by $24–$32 million, reflecting better collections and cash management.

• Transformation strategy (Fight Forward) focused on profitability, cost control, and operational efficiency is delivering results.

Financial highlights

• Q2 2025 revenues reached $906–$968 million, a 3% increase year-over-year, with gross profit up 14% and gross margin improving to 29.0% from 26.2%.

• H1 2025 revenues were $1,845 million, down 2% year-over-year, but gross profit rose 8% and gross margin improved to 29.6%.

• Q2 adjusted EBITDA margin improved to 12.2–13.3%; H1 adjusted EBITDA margin up to 13.3%.

• Q2 adjusted EBIT was $68 million (7.0% margin); H1 adjusted EBIT was $146 million (7.9% margin).

• Reported net loss narrowed significantly: Q2 to $43 million from $120 million, H1 to $34 million from $154 million.

Outlook and guidance

• Market demand is recovering as inventories normalize, but pricing pressure persists due to overcapacity and low commodity prices.

• Continued focus on operational efficiency, commercial excellence, and portfolio optimization expected to support future growth.

• The Fight Forward plan is expected to continue improving profit and cash targets over the next three years.