#Israel #Tel Aviv #ADAMA #financial report #Fight Forward

Overview of ADAMA's 2025 Financial Results

ADAMA Ltd. has recently unveiled its financial outcomes for the fourth quarter and the entire year of 2025, indicating a transformative year for the company. Headquartered in Israel, ADAMA is a prominent player in the global crop protection industry, focusing on practical agricultural solutions. This report captures the essence of their performance and strategic direction.

Fourth Quarter Highlights

The fourth quarter of 2025 presented some challenges, with ADAMA reporting a sales decline of 8%, totaling $1,026 million. This decline was attributed to a reduction in both volume and pricing, with volumes falling by 8% and prices by 2%. Despite this downturn in sales, several financial metrics showed positive trends:

• - Adjusted Gross Profit rose by 12% to reach $314 million, translating to a gross margin improvement from 25.2% in Q4 2024 to 30.6% in Q4 2025.
• - Adjusted EBITDA increased by 14% to $157 million, offering a margin increase to 15.3%.
• - The reported net loss was reduced significantly to $88 million from $149 million year on year, demonstrating a clear path towards stabilization and recovery.
• - Operating cash flow also saw an improvement, surging to $237 million in comparison to $126 million in Q4 2024.
• - Free cash flow reached $156 million, showcasing effective cash management strategies.

These indicators reflect the positive impact of ADAMA’s strategic initiatives aimed at reducing costs and improving operational efficiency.

Full Year Overview

For the full year of 2025, ADAMA's revenue totaled $4,051 million, marking a modest 2% decrease over the previous year. This decline stemmed from similar pressures noted in the fourth quarter, specifically a 2% reduction in pricing. Nonetheless, the company exhibited resilience in key areas:

• - Adjusted gross profit for 2025 was up by 12% reaching $1,192 million, with gross margins improving from 25.6% to 29.4%.
• - Adjusted EBITDA increased significantly, by 25%, to $587 million, further supporting an increased EBITDA margin from 11.3% to 14.5%.
• - A favorable net income of $28 million for the year emerged from the previous loss of $206 million in 2024.
• - Operating cash flow for the entire year was $567 million compared to $528 million in the prior year, indicating improved financial health.

Strategic Initiatives

President and CEO Gaël Hili emphasized ADAMA's commitment to its Fight Forward transformation strategy, launched in early 2024, which focused on several crucial areas:

• - Cost Competitiveness: Enhancing efficiency was paramount to navigating the challenges of the agricultural sector, as was evidenced by the improved gross margins.
• - Commercial Capabilities: Strengthening relationships with customers to deliver superior service and innovative solutions is at the forefront of ADAMA’s mission.
• - Sustainability Efforts: ADAMA has also received higher Environmental, Social, and Governance (ESG) ratings from various agencies, showcasing a commitment to sustainable practices.

The Fight Forward initiative is steadily establishing a sound foundation for sustainable growth, allowing ADAMA to maintain discipline and a mindset of continuous improvement.

Product Portfolio Development

In 2025, ADAMA successfully launched numerous products across global markets, focusing on innovative and value-driven solutions to cater to the evolving demands of farmers. The company introduced 139 new products, including:

• - EDAPTIS® (Italy) and PULIMAISI™ (China): Innovative herbicides providing effective control over resistant grass populations.
• - BELLALI® (France): A dual-action fungicide addressing resistance and protecting crop yields.
• - COSAYR® (France): A long-lasting solution targeting chewing insects in various crops.

Conclusion

ADAMA’s results for 2025 encapsulate a year of robust transformation, despite facing industry pressures. The strategic reforms under the Fight Forward initiative are yielding positive financial metrics, enhanced operational efficiencies, and a commitment to sustainable practices. The company appears well-positioned to navigate future challenges while delivering greater long-term value to its stakeholders. As ADAMA continues to build on its successes, it remains committed to supporting farmers and enhancing global food security through innovative crop protection solutions.