ADAMA Reports Improved Profitability and Cash Flow in Full Year 2025 Results
ADAMA Ltd. has reported its financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Highlights:
- Sales declined 8% (-9% in RMB) to $1,026 million, mainly reflecting decreases of 8% in volumes and 2% in prices
- Adjusted gross profit up 12% to $314 million, with an improvement in gross margin from 25.2% in Q4 2024 to 30.6% in Q4 2025, reflecting the benefits of lower costs
- Adjusted EBITDA up 14% to $157 million, with an improvement of EBITDA margin from 12.3% in Q4 2024 to 15.3% in Q4 2025
- Reported net loss declined by $61 million to $88 million, compared to $149 million in Q4 2024; Adjusted net loss reduced to $1 million from $58 million in Q4 2024
- Improvement of $111 million in operating cash flow, reaching $237 million in Q4 2025 vs. $126 million in Q4 2024
- Improvement of $118 million in free cash flow, reaching $156 million in Q4 2025 vs. $38 million in Q4 2024.
Full Year 2025 Highlights:
- Sales declined 2% (-2% in RMB) to $4,051 million, reflecting 2% decrease in prices and stable volumes
- Adjusted gross profit up 12% to $1,192 million, with an improvement in gross margin from 25.6% in 2024 to 29.4% in the full year of 2025, reflecting the benefits of lower costs
- Adjusted EBITDA up 25% to $587 million, with an improvement in EBITDA margin from 11.3% in 2024 to 14.5% in the full year of 2025
- Reported net loss declined by $260 million to $147 million, compared to $407 million in 2024; Adjusted net income turned positive to $28 million from a loss of $206 million in 2024
- Improvement of $39 million in operating cash flow, reaching $567 million in the full year vs. $528 million in 2024
- Improvement of $51 million in free cash flow, reaching $269 million in the full year vs. $217 million in 2024.
Gaël Hili, President and CEO of ADAMA, said, “ADAMA’s 2025 financial results show important improvements in key financial metrics including continued growth in EBITDA and its margin; increased cash generation; significantly reduced reported net loss; and an adjusted net profit. These encouraging successes reflect the strong foundation we have built over the past two years through our Fight Forward transformation plan, where we focused on improving cost competitiveness, enhancing our commercial capabilities, and advancing our innovation portfolio and pipeline.”
“This foundation is now a healthy base on which to build profitable growth. ADAMA is committed to maintaining the discipline and continuous improvement mindset that we built through Fight Forward. I am confident that ADAMA’s continued execution will deliver greater long-term value for our customers and investors,” Hili concluded.
The General Crop Protection (CP) Market Environment
Through 2025, channel inventory returned to pre-pandemic levels in most countries, following crop protection demand recovery. Pricing pressures remain high, driven by production over-capacity of active ingredients (AI). Crop commodity prices remain stably low, while farmer profitability remains tight leading to just-in-time purchasing patterns.1
ADAMA’s Strategy Execution
In early 2024, ADAMA launched its Fight Forward transformation plan to strengthen the company’s foundations and improve profit and cash performance. The plan sharpened ADAMA’s focus on priority countries and products, enhanced cost competitiveness, and established a more agile and streamlined operating model. These actions contributed to meaningful improvements in the company’s financial metrics and operational discipline.
Building on Fight Forward’s foundation, in 2026 ADAMA continues to advance its strategy, with a focus on enhancing its commercial capabilities to better serve customers, developing its differentiated portfolio and innovation pipeline, supporting a reliable and competitive supply of essential products, and pursuing a more efficient and responsive global manufacturing and supply network.
Sustainability
In 2025, ADAMA achieved higher ESG ratings across multiple agencies, including EcoVadis, GreenEye in Israel and Wind ESG Rating in China, reflecting the continued strengthening of the Company’s ESG practices and the growing integration of sustainability considerations across its operations.
Portfolio Development Update
During 2025 ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. The Company prioritized advanced, value-driven formulations and focused on new product introductions in segments where performance, reliability and cost competitiveness matter most. Alongside new launches, ADAMA maintained disciplined portfolio management to enhance overall product quality and relevance.
There were 139 new product launches in 2025. Several products were highlighted in the Company’s earlier 2025 quarterly reports, and in Q4 2025 launches of differentiated products included:
- EDAPTIS® (Italy) and PULIMAISI™ (China): Two innovative post-emergence herbicides combining both Pinoxaden and Mesosulfuron-methyl to provide effective control of a broad spectrum of grasses, including resistant populations, with patented formulations that ensures stable and reliable performance.
- BELLALI® (France): A robust, triazole-free fungicide combining Folpet and Azoxystrobin to deliver a dual mode of action, including a unique multi-site defense, designed to combat resistance and protect yields across wheat, barley and rye.
- COSAYR® (France): A long-lasting Chlorantraniliprole-based suspension, to deliver fast and effective control of chewing insects across a wide range of horticultural and field crops.
Registrations of differentiated products during Q4 2025 included:
- BREVIS™, BREVIS™ SG, METAMITRON AI (Canada): A fruit thinner for managing flowering and fruiting in pome fruits such as apples and pears
- EDAPTIS® (Ireland): This innovative post-emergence herbicide combines Pinoxaden and Mesosulfuron-methyl to provide effective control of a broad spectrum of grasses, including resistant populations, with a patented formulation that ensures stable and reliable performance.
- Registration of Prothioconazole based products, part of ADAMA’s comprehensive portfolio of innovative solutions for cereal fungicides, including:
- AVASTEL® in Hungary, Austria and Netherlands
- SORATEL® in Estonia
- PORAFAM® TITAN (Germany): A novel and unique herbicide combination for the control of broad-leaved weeds in winter oilseed rape, representing the first Aminopyralid based solution that ADAMA is registering in Europe.
- TELAVEX™ (Czech Republic): A powerful OD formulation for corn that combines Mesotrione and Thiencarbazone-methyl with a safener to deliver robust control of grass and broad-leaf weeds for both pre- and early post-emergence application.
- ATEKA™ (USA): A powerful Spirotetramat-based insecticide with full systemic action, designed to protect high-value crops from difficult to control sucking pests
- IZAVIA® (India): A high-performance SC formulation combining Chlorantraniliprole and Emamectin Benzoate. This dual-action product delivers both rapid knockdown and long-lasting residual control against the toughest Lepidopteran pests.
- DOMAGO® (India): A formulation combining Penoxsulam, Pretilachlor and the safener Fenclorim offering an effective weed control while guaranteeing a high safety to rice.
- MASTERCOP® 25 SC (Thailand): A broad-spectrum fungicide and bactericide based on copper sulfate pentahydrate, providing effective control of a wide range of fungal and bacterial diseases in range of crops including: berries, cucurbits, grapes, fruiting vegetables, pome fruits, potatoes, and tree nuts.
- CUTLASS® (Australia): A powerful, selective herbicide for the control of difficult broadleaf weeds in cereals, maize, pasture and waste areas.
- HIGHCARD® (Spain): Rice Cropping Solution for control of troublesome weeds, providing rotation flexibility and superior crop safety.
In addition, patents granted during Q4 2025 included a SORATEL™ formulation patent in the United States and Israel, and U.S. patents for Saflufenacil SL and the Fipronil & Imidacloprid mixture.
Geopolitical Situation
ADAMA is headquartered and has three manufacturing sites in Israel. Regional tensions escalated on October 7, 2023, and more recently widened on February 28, 2026. The Company’s Israeli production sites and supply chain, including ports, continue to operate without significant delays. As of this publication date, the events have not had nor are expected to have material impact on the Company’s ability to support its markets, its ongoing activities, or its consolidated financial results.
ADAMA is a global company with manufacturing and formulation facilities in several locations around the world, principally in Israel, China and Brazil. The Company’s management appointed a dedicated task force to analyze implications of global tariff policies on ADAMA and its sector, and to closely monitor and manage the situation and the potential impact on ADAMA’s global network. Despite the uncertainty regarding changes to trade and tariff policies around the world, the Company currently expects that the impact on its operations and business results will continue to be immaterial.
Financial Highlights
Revenues in the fourth quarter declined by approximately 8% (-9% in RMB; -10% in CER) compared to the fourth quarter of 2024 to $1,026 million, reflecting decreases of 8% in volumes and 2% in prices, partially offset by positive foreign exchange impacts. In the fourth quarter, lower volumes were recorded, mainly reflecting the Company’s strategic decisions to pivot away from selling some basic chemical products as well as phasing and the channel’s just-in-time purchasing patterns. Prices remained weak in most regions mainly due to low prices of active ingredients in light of overcapacity, as well as low commodity prices, which put pressure on farmers.
Revenues for the full year were $4,051 million, a decline of approximately 2% (-2% in RMB; -2% in CER) compared to the full year of 2024, reflecting a decrease of 2% in prices attributable to the reasons stated above. Volumes in the full year were stable as demand recovery due to inventory improvement in several regions was offset by the impacts of extreme weather conditions in some key countries, the Company’s strategic decisions to optimize its portfolio and geographical presence and reduce selling some basic chemical products, and significant declines in Turkey in Q1.
Europe, Africa & Middle East (EAME): Volumes decreased in the fourth quarter compared to Q4’24 mainly due to the impacts of phasing and just-in-time purchasing by customers in Europe, though prices stabilized. For the year, significant Q1 declines in Turkey impacted results. Excluding Turkey, volumes increased. Intense competition and farmer pressures continued. Foreign exchange rates had positive impact.
North America: In the North America Ag market, volumes were up on the year with new product launch of CAZADOTM well received by the market. Prices were slightly higher both for Q4 and the full year, while Q4 volumes were stable as demand adjusted to just-in-time purchasing. Consumer & Professional Solutions experienced flat prices and increased volumes following improved market penetration for both the fourth quarter and full year.
Latin America: Brazil experienced lower volumes and prices in Q4 compared to Q4’24 due to phasing and climate effects. However, revenues were up for the full year on the back of higher volumes in light of demand improvement and supported by new product introductions such as APRESA®, though partially offset by lower prices. In the rest of LATAM lower volumes and prices were reported for the year, particularly in Argentina and Mexico. Market decline was mainly driven by channel partners focused on working capital and inventory discipline in light of high interest rates. However, fourth quarter volumes improved compared to Q4’24 as the channel adapted to just-in-time purchasing.
Asia-Pacific (APAC): India experienced significant declines throughout the year primarily due to lower volumes driven by extreme weather conditions. Similarly, the rest of APAC (excluding India and China) experienced lower sales and volumes on the year, mainly attributable to unfavorable weather conditions in parts of Australia.
In China, sales in Q4 and the full year declined, primarily as the Company decided to pivot away from manufacturing some basic chemicals (non-ag business). In Q4, the decline was also due to phasing of customized AI products. For the full year, the decline was partially compensated by higher AI sales mainly due to the expansion of new distribution channels, while branded formulations still faced market and product competition.
Reported gross profit in the fourth quarter remained stable despite a decline in sales and reached $275 million (gross margin of 26.8%) compared to $274 million (gross margin of 24.7%) in the same quarter last year and increased 13% to $1,067 million (gross margin of 26.3%) in the full year compared to $946 million (gross margin of 22.9%) last year.
Adjustments to reported results: The adjusted gross profit includes mainly reclassification of inventory impairment, taxes and surcharge and excludes certain transportation costs (classified under operating expenses), inventory impairments, and the remediation costs for certain plants.
Despite a decline in sales, adjusted gross profit in the fourth quarter increased 12% to $314 million (gross margin of 30.6%) compared to $280 million (gross margin of 25.2%) last year and increased 12% to $1,192 million (gross margin of 29.4%) in the full year compared to $1,061 million (gross margin of 25.6%) last year.
The Company improved the gross profit and its margin in both the fourth quarter and the full year, mainly reflecting the positive impacts of lower costs due to improved operational efficiency and lower costs of inventory sold, more than compensating for lower volumes and prices.
Reported operating expenses reported in the fourth quarter and full year were $249 million (24.3% of sales) and $885 million (21.8% of sales), compared to $320 million (28.7% of sales) and $991 million (23.9% of sales) in the corresponding periods last year.
Adjustments to reported results: Please refer to the explanation regarding adjustments to the gross profit in respect to certain transportation costs, taxes and surcharges and inventory impairment.
The Company recorded certain non-operational items within its reported operating expenses amounting to $40 million in Q4 2025 in comparison to $118 million in Q4 2024 and $113 million in FY 2025 in comparison to $230 million in FY 2024. These items in 2025 include mainly: 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; iii. restructuring and advisory costs incurred as part of the implementation of the Fight Forward transformation plan; iv. fixed asset impairments related to improvement of operational efficiency, as part of the Fight Forward plan; and v. compensation related to product liability. For further details on these non-operational items, please see the appendix to this release.
Adjusted operating expenses in the fourth quarter and full year were $222 million (21.6% of sales) and $863 million (21.3% of sales), compared to $205 million (18.4% of sales) and $850 million (20.5% of sales) in the corresponding periods last year.
The operating expenses were higher in the fourth quarter and the full year, reflecting an increase in company performance-based employee compensation, and the negative impact of exchange rates. In the full year, the increase is also attributed to credit losses provisions due to liquidity issues of some local distributors in LATAM, but compensated by positive impacts of the Fight Forward plan.
Reported operating income turned positive to $26 million (2.6% of sales) in the fourth quarter compared to a loss of $45 million (-4.1% of sales) last year and to $182 million (4.5% of sales) in the full year compared to a loss of $45 million (-1.1% of sales) last year.
Adjusted operating income in the fourth quarter increased 23% to $92 million (9.0% of sales) from $75 million (6.7% of sales) last year and increased 55% to $329 million (8.1% of sales) in the full year from $212 million (5.1% of sales) last year. The increase in operating income in the fourth quarter and the full year was attributed to higher gross profits which more than offset increase in operating expenses.
EBITDA reported in the fourth quarter increased 18% to $137 million (13.4% of sales) from $117 million (10.5% of sales) last year, and increased 40% to $515 million (12.7% of sales) in the full year compared to $369 million (8.9% of sales) last year.
Adjusted EBITDA in the fourth quarter increased 14% to $157 million (15.3% of sales) from $137 million (12.3% of sales) last year and increased 25% to $587 million (14.5% of sales) in the full year from $469 million (11.3% of sales) last year.
Adjusted financial expenses decreased to $58 million in the fourth quarter and $261 million in the full year, compared to $61 million and $285 million in the corresponding periods last year.
The lower financial expenses in both the fourth quarter and the full year were primarily positively impacted by a bond buyback by a fully-owned subsidiary that was executed in late Q2 and the lower hedging costs related to the Israeli Shekel and lower exposure to the Turkish Lira.
Adjusted taxes on income decreased to $35 million in the fourth quarter and to $39 million in the full year, compared to $71 million and $133 million in the corresponding periods last year.
The Company recorded tax expenses mainly due to losses incurred by subsidiaries for which no deferred tax asset was created. On the other hand, the subsidiaries that generated profit have a higher tax rate.
The tax expenses in the full year of 2025 were lower compared to the full year of 2024 due to (1) lower losses (improved profit allocation) in subsidiaries that did not create deferred tax assets; (2) tax income raised by the accounting method of calculation of tax assets related to unrealized profits; and (3) foreign exchange impact of the stronger BRL in 2025 compared with tax expenses due to the weakness of the BRL in the full year of 2024.
Reported net loss declined to $88 million in the fourth quarter and to $147 million in the full year, compared to $149 million and $407 million in the corresponding periods last year.
After reflecting the impact of the above-mentioned extraordinary and non-operational charges, adjusted net loss in the fourth quarter decreased to $1 million from $58 million last year, and adjusted net income in the full year turned positive to $28 million compared to a loss of $206 million last year.
Trade working capital as of December 31, 2025, was $2,003 million compared to $2,111 million as of December 31, 2024. The decrease in working capital was due to both lower receivables which reflected intensive collections, and higher payables as a result of improved payable terms and increase in procurement. Inventory levels increased to $1,652 million by end of 2025, compared to $1,553 million by end of 2024, as the Company procured more in preparation to capture momentum as the market recovers and to secure business continuity during merging of entities in Israel as part of the Fight Forward plan.
Cash Flow: Operating cash flow of $237 million was generated in the fourth quarter and $567 million generated in the full year, compared to $126 million and $528 million in the corresponding periods last year. The higher operating cash flow generated in both the fourth quarter and the full year was mainly due to improvement in collections, which offset higher outflow reflecting increased procurement payments.
Net cash used in investing activities was $38 million in the fourth quarter and $169 million in the full year, compared to $40 million and $162 million in the corresponding periods last year. In the full year, the Company strengthened execution of its strategic decision to prioritize the most critical investments in infrastructure, portfolio and innovation while optimizing existing assets to enable new growth projects. The decline in cash used in investing activities was more than offset by the payment for earn-out of AgriNova, a controlled subsidiary in Q2 2025 while in Q3 2024 the Company received proceeds from the sale of a real estate asset.
Free cash flow of $156 million was generated in the fourth quarter and $269 million in the full year, compared to $38 million and $217 million generated in the corresponding periods last year, reflecting the aforementioned operating and investing cash flow dynamics.
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