Key Takeaways:
- ADAMA’s Q2 sales rose 5% to $1.09 billion, driven by 8% volume growth despite 3% lower prices.
- Adjusted EBITDA increased 25% in Q2 to $150 million; adjusted net income turned positive at $6 million.
- H1 2025 sales remained stable at $2.09 billion; adjusted net income reached $49 million versus a $71 million loss in H1 2024.
- “Fight Forward” transformation plan delivering improved profitability, stronger cash flow, and reduced net losses.
- Company highlights product launches, ESG recognition, and continued portfolio expansion.
Financial Performance Overview
ADAMA Ltd. (SZSE: 000553) reported higher volumes and stronger profitability in the second quarter and first half of 2025, supported by its Fight Forward transformation plan.
Q2 2025 results:
- Sales rose 5% (6% in RMB) to $1.09 billion, with volumes up 8%.
- Adjusted gross profit grew 18% to $318 million, lifting margins to 29.1% from 25.8%.
- Adjusted EBITDA climbed 25% to $150 million, with margin improving to 13.7%.
- Adjusted net income turned positive at $6 million, compared to a $61 million loss last year.
H1 2025 results:
- Sales were stable at $2.09 billion (0% in USD, 1% in RMB), with 4% volume growth offset by lower prices.
- Adjusted EBITDA rose 23% to $310 million, with margin at 14.8%.
- Adjusted net income improved to $49 million, compared to a $71 million loss in H1 2024.
- Reported net loss narrowed to $11 million, from $126 million a year earlier.
Operating cash flow remained steady at $242 million, while free cash flow increased to $90 million versus $51 million last year.
ADAMA CEO Perspective
“As we reach the midpoint of 2025, I am encouraged by the tangible progress we are making through our Fight Forward transformation plan,” said Gaël Hili, President and CEO of ADAMA. “We returned to year-over-year revenue growth in Q2 for the first time since Q3 2022, and achieved our fifth consecutive quarter of EBITDA growth. These shifts create the conditions for sustainable growth and allow us to concentrate on delivering differentiated, high-value solutions to farmers.”
Regional and Market Dynamics
- North America: Sales grew 24% in Q2 (25% at CER) and 19% in H1, driven by stronger volumes in corn and soybean markets and improved channel dynamics.
- Latin America: Sales rose 3% in Q2 but fell 9% in H1 due to competition and just-in-time purchasing behavior.
- Europe, Africa & Middle East: Stable performance in Q2, though full H1 sales declined 4% due to weak demand in Turkey; pricing pressure persisted.
- Asia-Pacific: Sales fell 2% in Q2 and 4% in H1, reflecting pricing pressures and regional challenges; China recorded double-digit growth supported by chlor-alkali and AI sales.
Portfolio Development
ADAMA continued to strengthen its portfolio with product launches across multiple regions in Q2, including:
- Brevis™ SC (USA): Fruit thinner for pome fruits.
- Upturn® (India): Broad-spectrum herbicide for hard-to-kill weeds.
- Jumbo® (Brazil): Herbicide for sugarcane.
- Temper™ More (USA): Dual-action herbicide using SESGAMA™ technology.
Additional registrations included COSAYR® (chlorantraniliprole suspension) in several EU countries, MAXENTIS® (fungicide) in Canada, Bulgaria, Denmark, and Poland, and DOMAGO® (China) for rice weed control.
ESG and ADAMA’s Outlook
ADAMA achieved a fifth consecutive year of improved ESG performance ratings from EcoVadis, ranking in the top 23% of its sector and top 14% for environmental performance.
Looking ahead, the company remains focused on portfolio innovation, disciplined cash and inventory management, and leveraging its “Fight Forward” transformation plan to deliver sustainable profitability.
Read the full report here.
ADAMA Ltd.
ADAMA Ltd. is a global leader in crop protection, serving farmers in over 100 countries. The company focuses on understanding farming as more than just a business, prioritizing listening, learning, and delivering solutions tailored to grower needs. Its portfolio includes differentiated, high-quality products supported by advanced R&D, manufacturing, and formulation facilities.
With approximately 8,000 employees worldwide, ADAMA transforms one of the largest collections of active ingredients into solutions for controlling weeds, insects, and diseases. By working closely with farmers and incorporating their insights, the company develops tools to help improve yields and support sustainable agriculture practices.
