ADAMA has reported a sharp deterioration in its third-quarter financial performance, with its net loss more than doubling to $115 million as extreme weather conditions in Europe, weak market demand and sustained pricing pressure across global markets battered sales and profitability.

 

The global crop protection company, which operates across major agricultural markets, reported a net loss of $115 million for the quarter ended September 30, 2026, compared with $48 million in the corresponding period last year. Its adjusted net loss also widened significantly to $74 million from $20 million a year earlier.

 

Revenue fell 4% to $897 million, while adjusted EBITDA plunged 22% to $93 million from $120 million in the third quarter of 2025. Adjusted gross profit declined 11% to $228 million, with margins contracting to 25.4% from 27.6%.

 

The company attributed the weak performance to record heat and drought in Europe, lower farmer purchasing power, elevated agricultural input costs and persistent price pressure in off-patent crop protection products across regions.

 

The results also come amid a leadership transition, with President and CEO Gaël Hili set to step down from the chief executive position in November and continue with the company as chairman of the board.

 

Commenting on the performance, Hili said, "ADAMA continues to advance its strategic priorities, strengthening its portfolio, sharpening its market focus, and building the operational foundation required to improve performance and efficiency. 

 

"While pricing pressure continues across all regions in off-patent products, and the third quarter was marked by more challenging than expected market conditions with extreme weather in Europe, we are encouraged by the promising progress achieved in our strategic markets and product categories. Despite these challenging conditions, I am pleased to see the differentiated products' volumes growing in key markets as well as the discipline of the team in keeping its operating costs down to offset headwinds.

 

"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. As I make this transition, I do so with strong confidence in ADAMA's strategic direction, and in Dr. Zhigang Hao's leadership to build on this foundation and unlock the company's full potential while creating long-term value for its shareholders."

 

For the first nine months of 2026, ADAMA reported revenue of $2.997 billion, down 1% from $3.025 billion in the same period last year. Adjusted gross profit declined 2% to $860 million, while adjusted EBITDA dropped 8% to $395 million.

 

The company reported a net loss of $53 million for the nine-month period, marginally lower than the $59 million loss recorded a year earlier. However, its adjusted performance deteriorated, swinging to a net loss of $11 million from an adjusted net profit of $29 million in the corresponding period of 2025.

 

Adjusted operating income fell 12% to $207 million, compared with $237 million a year earlier, while the operating margin contracted to 6.9% from 7.8%.

 

Cash generation also weakened. Operating cash inflow for the first nine months dropped to $194 million from $331 million in the year-ago period. Free cash inflow declined to $87 million from $112 million.

 

The company said lower collections from basic chemicals and timing differences, particularly in the first quarter of 2025, contributed to the decline in operating cash flow.

 

Regional performance remained uneven, with Europe, Africa and the Middle East (EAME) emerging as the weakest-performing region during the third quarter.

 

Sales in EAME fell 13% in dollar terms to $203 million, while sales at constant exchange rates declined 16%. ADAMA attributed the contraction to significantly weaker market consumption and reduced crop protection applications across several European markets.

 

Extreme weather conditions, including record heat and drought, disrupted agricultural activity and contributed to channel inventory build-up. Higher farmer input costs further weakened demand.

 

Latin America also reported a decline, with third-quarter sales falling 8% to $286 million. Sales in Brazil remained under pressure despite intensified commercial efforts ahead of the soybean season, particularly in fungicides and insecticides. Pricing pressure, tight farmer liquidity and intense competition in commodity products weighed on performance.

 

North America, by contrast, delivered a 6% increase in sales to $174 million, supported by growth in Professional Solutions, Consumer and Canada. However, lower prices in US agricultural commodity categories and elevated inventories continued to weigh on parts of the business.

 

Asia-Pacific sales rose 4% to $235 million, with growth in India and the Pacific region offsetting weakness in parts of Southeast Asia.

 

In China, third-quarter sales increased 9% to $99 million, supported by higher sales of branded formulations following new product launches and improved sales of non-agricultural products. However, nine-month sales in China declined 16% to $337 million, reflecting ADAMA's decision to scale back manufacturing and sales of certain basic chemicals and low-margin products.

 

ADAMA said the broader crop protection market continued to face difficult conditions during the first nine months of 2026, with demand growth weaker than anticipated despite relatively low channel inventories.

 

Farmer purchasing remained cautious, with elevated input costs, higher borrowing expenses and weaker profitability prompting growers to adopt just-in-time purchasing strategies.

 

Pricing pressure was particularly pronounced in off-patent products, driven by persistently low active ingredient prices and structural production overcapacity in China.

 

Geopolitical tensions and weather-related disruptions added further uncertainty across agricultural production, input costs and grower profitability.

 

Despite the challenging market environment, ADAMA continued to expand its differentiated product portfolio, launching 31 new products and securing 70 new product registrations during the first nine months of 2026.

 

Key launches during the third quarter included REXARO, a fungicide introduced in India for specialty crops; ACTAGON™, a pre-emergence wheat herbicide; RAVARI®, an insecticide solution launched in Mexico; and PORAFAM® Titan, a weed-control solution introduced in Germany.

 

The company also secured registrations for differentiated products in Brazil, Argentina and Latvia, including SPARTA® for soybean disease control, PARAMER® SC for residual weed management and FERRABAIT® for slug and snail control.

 

ADAMA said its strategy remains focused on improving portfolio differentiation, strengthening commercial capabilities, building a more flexible and competitive manufacturing network and improving operational efficiency.

 

The company also provided an update on the impact of regional tensions on its Israeli operations.

 

ADAMA said its Neot Hovav manufacturing site suffered limited and localised damage in March and early April 2026 following falling debris after missile interceptions in southern Israel. No injuries were reported.

 

The company temporarily closed the facilities on safety grounds and subsequently undertook restoration work. According to ADAMA, the site has since returned to normal operational status, with the overall financial impact expected to be immaterial.

 

The company also said the impact of changing global tariff policies on its operations and financial performance was currently expected to remain immaterial.

 

With profitability under pressure, ADAMA is banking on differentiated products, tighter cost controls and operational restructuring to restore growth and improve margins. The leadership transition in November will place the responsibility for driving that recovery on incoming CEO Dr. Zhigang Hao.