ADAMA (000553) Q4 2025 earnings summary

Executive summary

• Achieved significant turnaround in 2025, with improved profitability and cash flow following a two-year Fight Forward program focused on cost optimization and operational efficiency.

• Sales declined 2% year-over-year due to stable volumes and a 2% price decrease, reflecting market trends and strategic exits from low-margin products and geographies.

• EBITDA grew 25% for the full year, with gross profit up 11% and a return to positive adjusted net profit after three years; adjusted net income was $5 million, and reported net loss narrowed to $140 million from $407 million.

• Free cash flow reached $231 million for the year, driven by better collections and business earnings despite higher procurement to support growth.

• A missile strike at the Ne'ot Hovav facility caused a warehouse fire but no injuries; the plant, representing about 10% of global sales, is being assessed for operational resumption.

Financial highlights

• Q4 2025 sales were $962 million, down 5.5% year-over-year, with a 6% volume decline and 2% lower prices; Q4 gross profit up 11.4% to $298 million, and EBITDA up 17.4% to $146 million.

• Full-year sales were $3,660 million, down 2% year-over-year; gross profit up 11.1% to $1,085 million, and EBITDA up 25.2% to $486 million, with an EBITDA-to-sales ratio of 13.3%.

• Gross margin improved to 31% in Q4 and 29.7% for the full year; EBITDA margin rose to 15.1% in Q4 and 13.3% for the year.

• Net debt/EBITDA ratio improved to 1.9x at year-end.

• Reported net loss narrowed to $140 million from $407 million last year.

Outlook and guidance

• Focus for 2026 and beyond is on profitable top-line growth while maintaining cost discipline and execution discipline.

• Plans to invest selectively in growth opportunities, innovation pipeline, and further optimize manufacturing footprint.

• Confident in ability to grow due to improved financial health, innovation pipeline, and commercial capabilities.

• Further operational efficiency expected, including merger of Israeli entities.