ADAMA Reports Second Quarter and First Half Year 2025 Results

BEIJING, CHINA and TEL AVIV, ISRAEL, August 26, 2025 – ADAMA Ltd. (the “Company”) (SZSE 000553), today reported its financial results for the second quarter and first half of 2025 that ended June 30, 2025.

Second Quarter 2025 Highlights:

• Sales up 5% (6% in RMB) to $1,092 million, driven by an 8% increase in volume, which more than offset a 3% decrease in prices
• Adjusted gross profit up 18% to $318 million, representing an improvement of gross margin to 29.1% from 25.8% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 25% to $150 million, representing an improvement of EBITDA margin to 13.7% from 11.5% last year
• Adjusted net income turned positive to $6 million from a loss of $61 million last year; Reported net loss improved by $62 million to $32 million compared to $94 million last year

First Half Year 2025 Highlights

• Stable Sales (0% in USD, 1% in RMB) of $2,091 million, mainly reflecting volume growth of 4% offset by a 3% decrease in prices
• Adjusted gross profit up 11% to $620 million, representing an improvement of gross margin to 29.7% from 26.5% last year, reflecting the benefits of lower costs and higher volumes
• Adjusted EBITDA up 23% to $310 million, representing an improvement of EBITDA margin to 14.8% from 12.0% last year
• Adjusted net income turned positive to $49 million compared to a loss of $71 million last year; Reported net loss improved by $115 million to $11 million compared to $126 million last year
• Operating cash flow of $242 million generated vs. $243 million last year
• Free cash flow increased to $90 million vs. $51 million last year

Gaël Hili, President and CEO of ADAMA, said, “As we reach the midpoint of 2025, I am encouraged by the tangible progress we are making through our Fight Forward transformation plan. In the second quarter, ADAMA returned to year-over-year revenue growth for the first time since Q3 2022, while also achieving our fifth consecutive quarter of year-over-year EBITDA growth. We strengthened our capital structure through improved cash generation and disciplined inventory management. Operationally, we have sharpened our geographic focus and centralized key support functions, enabling greater agility, enhanced customer proximity, and improved focus on commercial execution. These strategic shifts aim to create the conditions for sustainable growth and allow us to concentrate on delivering differentiated, high-value solutions to our Value Innovation customer segment. We remain committed to advancing a portfolio of innovative formulations and technologies that provide real value to farmers — improving performance, ease of use, and return on investment for our customers and other stakeholders.”

Table 1. Financial Performance Summary

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 Q2 and H1 2025 and 2024 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

In H1 2025 channel inventory returned to pre-pandemic levels in most countries, allowing crop protection demand recovery. Pricing pressure remains high, driven by production over-capacity of active ingredients. Crop commodity prices remain stably low and coupled with the high-interest rate environment, farmer profitability remains tight leading to just-in-time purchasing patterns.[1]

Portfolio Development Update

In Q2 2025, ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. As part of the Fight Forward transformation plan, the Company is focused on improving its overall portfolio mix, particularly by targeting the Value Innovation segment, with the intent of improving value delivered to all stakeholders.

In Q2 2025, launches of differentiated products included: 

• Brevis™ SC (USA): A fruit thinner for managing flowering and fruiting in pome fruits such as apples and pears.
• Prothioconazole-Based Portfolio Expansion including Maxentis^® in Argentina and Forapro^® in Latvia
• Upturn^® (India): Officially launched following its soft introduction in 2024, this blend of Fomesafen and Propaquizafop offers broad-spectrum control of hard-to-kill weeds.
• Jumbo^® (Brazil): A herbicide combining Sulfentrazone and Tebuthiuron, offering broad-spectrum, high-efficiency weed control in sugarcane.
• Temper™ More (USA): A herbicide developed with ADAMA’s SESGAMA™ technology, combining Glufosinate-ammonium and S-metolachlor for dual-action burndown and residual control of grasses and small-seeded broadleaf weeds.

Notable differentiated product registrations during Q2 2025 included:

• COSAYR^®: Chlorantraniliprole suspension registered in Croatia, Germany, and Slovakia; In Czech Republic registered under the name RYNO-A^®.
• Prothioconazole-Based Formulations Registrations MAGANIC^®, AVASTEL^® VAZANTI^® in several European countries.
• MAXENTIS^® (Azoxystrobin + Prothioconazole SC) in Bulgaria, Canada, and Denmark, and in Poland under the name BODEGA^®

• FORAPRO^® (Fenpropidin + Prothioconazole EC) – Latvia

• DOMAGO^® (China): A formulation combining Penoxsulam and Pretilachlor for effective weed control in rice.
• MATTOK^® (Mexico): A unique combination of Azoxystrobin and Tebuconazole enriched with a biostimulant, for fungal disease control and boosting plant health and crop quality in cereals, cotton, and corn.
• RAVARI^® (Mexico): A combination of Chlorantraniliprole and Novaluron offering superior control of Spodoptera and other caterpillars, with extended residual protection for row crop growers.
• FERALLA^®: The active substance FERALLA^®, was approved in the EU as a low-risk active substance.

In addition, Gilboa^® , a proprietary fungicide, was recognized by the Fungicide Resistance Action Committee (FRAC) for having a new mode of action for use in cereals. As well, a patent was allowed in the EU for the proprietary stabilization of the Edaptis^®  formulation, and in Australia a patent was granted for deploying carbetamide before or during sowing.

ESG

In July, ADAMA achieved a fifth consecutive year of improved ESG performance ratings from EcoVadis, a leading global sustainability assessment platform. The Company placed among the top 23% of companies in its sector, and in the top 14% for environmental performance. This recognition reflects ADAMA’s ongoing commitment to responsible business practices and continuous improvement across key ESG areas.

Geopolitical Situation

ADAMA is headquartered and has three manufacturing sites in Israel. The regional tensions which escalated on October 7, 2023 and briefly escalated in June 2025 continued to have no material impact to-date on the Company's ability to support its markets or its consolidated financial results.

Regarding US tariff policies, ADAMA’s management appointed a dedicated task force to analyze implications of US tariff policies and to closely monitor the situation and the potential impact on its global network.

‘Fight Forward’ Transformation Plan

In early 2024, ADAMA launched 'Fight Forward', a strategic transformation plan aimed at gradually delivering improved profit and cash targets over a three-year period. The plan aims to optimize financial management and to streamline ADAMA’s operating model in order to increase focus on the Value Innovation segment in which differentiated, high-impact solutions are developed to deliver greater value to farmers.

Financial Highlights

Revenues in the second quarter increased by approximately 5% (6% in RMB; 5% in CER) to $1,092 million, reflecting a volume growth of 8%, more than offsetting a decrease of 3% in prices. The higher volumes reflected the gradual recovery of market demands and improvement of channel inventories in most regions, while the Company has been shifting away from selected low profit products and businesses. Prices were weak mainly due to low prices of active ingredients in light of overcapacity, as well as a high interest rate ‎environment and low commodity prices, which put pressure on distributors and farmers.

Supported by the growth of revenues in the second quarter, ADAMA reported flat sales for the first half of 2025 (0% in USD, 1% in RMB, 1% in CER), compared to the first half of 2024. The stabilization of revenues in the first half was driven by volume growth of 4% offsetting a decrease in prices of 3%.

Table 2. Regional Sales Performance

Notes:

• CER: Constant Exchange Rates
• As part of ADAMA’s business optimization program, on January 1, 2025, ADAMA’s South Africa business was reclassified from APAC operations to EAME operations. To enable meaningful comparisons, the 2024 data presented here includes South Africa under EAME.
• Numbers may not sum due to rounding

Europe, Africa & Middle East (EAME): Volumes and revenue in Europe have generally improved year-over-year in H1 and were similar in Q2, though EAME results were negatively impacted by significant Q1 declines in Turkey which also impacted H1. Pricing continued to decline in light of intense competition. Weather challenges in Northern Europe were offset by good conditions in France and other countries.

North America: In the US Ag market, reduction of stock in the channel and good weather conditions in key markets such as corn and soybean led to volume increases. Just-in-time purchasing behavior continues with slight improvements in prices. Similarly in Canada while AI pricing pressures remain, volumes for ADAMA’s overall portfolio have improved significantly in Q2 and H1. Consumer & Professional Solutions experienced flat Q2 revenues with a slight increase in volume offset by a slight decline in prices. However, for the half-year revenues increased with declining prices more than offset by higher volumes. End users did not consume as much inventory as normal due to rain and adverse weather conditions.

Latin America: In Brazil, volumes are up resulting in Q2 revenue improvements, partially offsetting a weaker Q1. Competition remains strong, resulting in lower pricing. In the rest of LATAM pricing pressures continue in light of generics competition and just-in-time purchasing behaviors, with lower volumes and revenues reported in Q2 and H1.

Asia-Pacific (APAC): Sales continue to experience pricing pressure, with declines in Q2 and H1. These declines reflect both ample oversupply and the Company’s decision to optimize regional layouts. In India, irregular weather including flooding in some regions and deficient rainfall in others, impacted sales, though volumes increased in both the quarter and half year.

In China, sales increased both in the second quarter and first half.  Non-ag sales increased led by strong chlor-alkali markets with stronger margin due to higher operational efficiency. AI sales also increased, driven by volume growth due to the expansion of new distribution channels and supported by the recovery of global demand. Lower prices and volumes of branded formulations reflected the impacts of market competition.    

Reported gross profit in the second quarter increased 25% to $284 million (gross margin of 26.0%) from $227 million (gross margin of 21.8%) last year, and increased 15% to $556 million (gross margin of 26.6%) in the half year period from $484 million (gross margin of 23.0%) last year.

Adjustments to reported results: The adjusted gross profit mainly includes reclassification of inventory impairment, taxes and surcharge, and excludes certain transportation costs (classified under operating expenses) and the remediation costs by a wholly-owned subsidiary for its plant in Israel.

Adjusted gross profit in the second quarter increased 18% to $318 million (gross margin of 29.1%) from $269 million (gross margin of 25.8%) last year, and increased 11% to $620 million (gross margin of 29.7%) in the half year period from $557 million (gross margin of 26.5%) last year.

The higher adjusted gross profit and margin in the quarter and half year mainly reflected the positive impacts of higher volume as well as lower costs due to improved operational efficiency and lower costs of inventory sold, more than compensating for lower prices.   

Operating expenses reported in the second quarter were $229 million (21.0% of sales), compared to $244 million (23.4% of sales) last year, and reached $431 million (20.6% of sales) in the half year period compared to $449 million (21.4% of sales) last year.

Adjustments to reported results: Please refer to the explanation above regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment. Non-operating income and expenses are also reclassified into adjusted operating expenses.

The Company recorded certain non-operational items within its reported operating expenses amounting to $22 million in Q2 2025 in comparison to $56 million in Q2 2024 and $47 million in H1 2025 in comparison to $76 million in H1 2024. These items in 2025 include: i. non-cash amortization charges in respect of transfer assets received from Syngenta related to the 2017 ChemChina-Syngenta acquisition; ii. non-cash amortization net charges related to intangible assets created as part of the Purchase Price Allocation (PPA) on acquisitions; and iii. restructuring and advisory costs incurred as part of the implementation of the Fight Forward transformation plan. For further details on these non-operational items, please see the appendix to this release.

Adjusted operating expenses in the second quarter were $233 million (21.3% of sales), compared to $216 million (20.8% of sales) last year, and were $440 million (21.0% of sales) in the half year period compared to $433 million (20.6% of sales) last year.

In the first half, there was positive impact in adjusted operating expenses following implementation of the Fight Forward plan and the positive impacts of exchange rates. These benefits were offset mainly by expected credit loss in Q2 in LATAM due to liquidity issues of some local distributors.

Reported operating income in Q2 was $55 million (5.1% of sales) compared to a loss of $16 million (-1.6% of sales) last year, and increased 264% to $125 million (6.0% of sales) in H1 from $34 million (1.6% of sales) last year.

Adjusted operating income in Q2 increased 63% to $85 million (7.8% of sales) from $52 million (5.0% of sales) last year, and increased 46% to $181 million (8.6% of sales) in H1 from $124 million (5.9% of sales) last year. The increase in operating income was a combined result of higher gross profit partially offset by higher operating expenses.

Reported EBITDA in Q2 increased 71% to $130 million (11.9% of sales) from $76 million (7.3% of sales) last year, and increased 39% to $273 million (13.1% of sales) in H1 from $196 million (9.4% of sales) last year.

Adjusted EBITDA in Q2 increased 25% to $150 million (13.7% of sales) from $120 million (11.5% of sales) last year, and increased 23% to $310 million (14.8% of sales) in H1 from $252 million (12.0% of sales) last year.

Adjusted financial expenses were $82 million in Q2 compared to $70 million last year, and were $136 million in H1 compared to $139 million last year.

The higher financial expenses in the second quarter were largely attributable to higher hedging costs on exchange rates in LATAM, primarily Brazil, and lower deposit income as the Company prioritized repaying debts for better cash management. In the first half, financial expenses were slightly lower compared to last year following strengthening of our debt structure also through improved cash generation.

As part of strengthening debt structure, a subsidiary of the Company repurchased a significant part of its bond principal in the second quarter for the purpose of improving financing structure and efficiency. As the repurchase was completed late in the quarter, the impacts on improving the financial costs were minor during the reporting periods.

Adjusted taxes on income in the second quarter were an income of $3 million, compared to expenses of $43 million in the corresponding period last year, and amounted to an income of $5 million in the half year period compared to expenses of $55 million last year. The tax income in 2025 was mainly due to the accounting method of calculation of tax assets related to unrealized profits and the non-cash impact of the stronger BRL.

In the 2024 periods despite reaching losses before tax, the Company recorded tax expenses mainly ‎because (1) the losses were primarily incurred by subsidiaries with relatively lower tax rates, while some ‎of them did not create deferred tax assets on the losses and on the other hand, the subsidiaries that ‎generated profit have a higher tax rate, and ‎ (2) non-cash impact of the weaker BRL.

Net loss reported in the second quarter was narrowed by 66% to $32 million from $94 million last year, and narrowed by 91% to $11 million in the first half from $126 million last year.

After reflecting the impact of the aforementioned extraordinary and non-operational charges, adjusted net income in the second quarter turned positive to $6 million from a loss of $61 million last year, and in the first half to $49 million from a loss of $71 million last year.

Trade working capital as of June 30, 2025 was $2,089 million compared to $2,289 million as of June 30, 2024. The decrease in working capital was mainly due to the decline in the level of inventory to $1,622 million as of June 30, 2025 from $1,728 million as of June 30, 2024. The decline of inventories was a result of continued implementation of selective procurement, enhanced inventory management and lower AI and raw material costs. The slight decrease in receivables reflected the intensive collections and similar sales in the same period. Trade payables increased as the Company increased procurement in preparation to capture momentum as the market recovers.

Cash Flow: Operating cash flow of $271 million and $242 million was generated in the second quarter and first half year periods respectively, compared to $347 million and $243 million generated in the corresponding periods last year. The lower operating cash flow generated in the second quarter was mainly due to higher procurement payment in preparation to capture growth momentum, which exceeded the positive impacts from improved business earnings. The dynamics in the half-year period reflected an improvement in collection, offsetting higher outflow due to higher procurement payments.

Net cash used in investing activities was $52 million in the second quarter and $88 million in the first half period, compared to $48 million and $115 million in the corresponding periods last year, respectively. The higher cash used in investing activities in the second quarter was mainly payment for earn out related to Agrinova, a controlled subsidiary of the Company. Other than that, cash used in investing activities in both the quarter and the first half was lower, reflecting continued prioritization of investments in ADAMA’s manufacturing facilities and portfolio optimization.

Free cash flow of $176 million was generated in the second quarter and $90 million generated in the half-year period compared to $245 million and $51 million in the corresponding periods last year, respectively, reflecting the aforementioned operating and investing cash flow dynamics.

Table 3. Revenues by operating segment

Sales by segment

Sales by product category

Notes:

The sales split by product category is provided for convenience purposes only and is not representative of the way the Company is managed or in which it makes its operational decisions.
Numbers may not sum due to rounding.

Further Information

All filings of the Company, together with a presentation of the key financial highlights of the period, can be accessed through the Company website at www.adama.com.

About ADAMA

ADAMA Ltd. is a global leader in crop protection, providing practical solutions to farmers across the world to combat weeds, insects and disease. Our culture empowers ADAMA's people to actively listen to farmers and ideate from the field. ADAMA's diverse portfolio of existing active ingredients, coupled with its leading formulation capabilities and proprietary formulation technology platforms, uniquely position the company to develop high-quality, innovative and sustainable products, to address the many challenges farmers and customers face today. ADAMA serves customers in dozens of countries globally, with direct presence in all top 20 markets. For more information, visit us at www.ADAMA.com.

Contact

Joshua Phillipson  Zhujun Wang

Global Investor Relations China Investor Relations

Email: ir@adama.com Email: irchina@adama.com