ADAMA Reports Third Quarter & First Nine Months 2026 Results

Record heat and drought in Europe impacted sales in addition to price pressure across all regions in off-patent products 

BEIJING and TEL AVIV, Israel, Oct. 29, 2026 /PRNewswire/ — ADAMA Ltd. (the “Company”) (SZSE: 000553), today reported its financial results for the third quarter & first nine-months ended September 30, 2026. 

Third Quarter 2026 Highlights:

• Sales declined 4% (-9% in RMB) to $897 million
• Adjusted gross profit declined 11% to $228 million (margin of 25.4%) in Q3 2026 vs. $257 million (margin of 27.6%) in Q3 2025 
• Adjusted EBITDA declined 22% to $93 million (margin of 10.4%) vs. $120 million (margin of 12.9%) in Q3 2025
• Reported net loss reached $115 million vs. $48 million in Q3 2025; Adjusted net loss reached $74 million vs. $20 million in Q3 2025
• Operating cash inflow increased to $94 million in Q3 2026 vs. $89 million in Q3 2025
• Free cash inflow was $33 million in Q3 2026 vs. $22 million in Q3 2025

First Nine Months 2026 Highlights:

• Sales declined 1% (-5% in RMB) reaching $2,997 million
• Adjusted gross profit declined 2% to $860 million (margin of 28.7%) in 9M 2026 vs. $878 million (margin of 29.0%) in 9M 2025
• Adjusted EBITDA declined 8% to $395 million (margin of 13.2%) vs $430 million (margin of 14.2%) in 9M 2025
• Reported net loss reduced to $53 million from $59 million in 9M 2025; Adjusted net profit declined to a loss of $11 million from a profit of $29 million in 9M 2025
• Operating cash inflow was $194 million in 9M 2026 vs. $331 million in 9M 2025
• Free cash inflow was $87 million in 9M 2026 vs. $112 million in 9M 2025                                                

Gaël Hili, President and CEO of ADAMA, 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.”

The general crop protection (CP) market environment

During the first nine months of 2026, crop protection market volumes saw weaker than anticipated growth due to elevated farmer costs and just-in-time purchasing patterns, despite low channel inventories supporting healthy underlying crop protection demand. Additionally, crop protection pricing, particularly in the off-patent market, continued to remain under pressure, mainly due to lower farmer profitability, as well as persistently low active ingredient prices resulting from structural production overcapacity in China.

Overall market conditions varied across regions and crops, while farmer margins remained under pressure in many markets due to higher borrowing costs as well as higher fertilizer and fuel costs.

Geopolitical tensions and weather-related disruption continued to create uncertainty along the entire value chain from crop production, input costs and grower profitability.^[1]

Strategy execution 

The Company is focused on turning stabilization into profitable growth and sustained value creation. Its strategy prioritizes selective growth in markets, segments and offerings where ADAMA can create clear value for customers and generate attractive returns. Execution is focused on four sources of value: (i) driving portfolio differentiation that meets grower needs; (ii) enhancing commercial capabilities to support profitable growth; (iii) shifting to a more competitive, flexible and asset-light supply and manufacturing network; and (iv) improving organizational design, processes, and systems to support better decisions and create additional value across the business. Across these areas, ADAMA remains focused on improving margins, generating cash, maintaining cost control and directing investment toward the highest-return opportunities.

Portfolio development update

During Q3 2026 ADAMA continued to register and launch multiple new products in markets across the globe, adding on to its differentiated product portfolio. The Company continued to focus on advanced, value–driven formulations supporting optimization of its product portfolio. In the first nine months of 2026, ADAMA launched 31 new products and received 70 new product registrations.

Key launches of differentiated products during Q3 2026 included:

• REXARO® (India): A Suspension Concentrate (SC) fungicide combining Fluopicolide and Cymoxanil, providing preventive and early curative control of Oomycete diseases for long-lasting protection, reduced spray frequency and improved crop safety in F&V crops.
• ACTAGON™ (India): A ready-mix pre-emergence wheat herbicide combining Pyroxasulfone and Metribuzin for control of Phalaris minor and other key weeds. This easy mix liquid formulation helps growers reduce operational complexity by eliminating on-farm tank mixing and supporting fewer herbicide applications.
• RAVARI® (Mexico): Combines the complementary strengths of Novaluron and CTPR, offering two distinct modes of action in a water-based Suspension Concentrate (SC) formulation powered by ADAMA’s Ayalon™ Formulation Technology. This combination provides growers with a valuable resistance-management tool for integrated pest-management programs and delivers long-lasting control of lepidopteran larvae in avocado and vegetable crops.
• PORAFAM® Titan kit (Germany): Combines a novel Aminopyralid and Quinmerac SC formulation with Metazachlor, this premium solution delivers improved broad-spectrum control of broad-leaved weeds and grasses in Oilseed rape.

Notable differentiated product registrations included:

• SPARTA® (Brazil): 3-way mixture, combining a leading rust-control molecule with high-efficacy actives to broaden the disease control spectrum in a proprietary ADAMA formulation, providing value for growers and supporting more sustainable, high-performing soybean production.
• PARAMER® SC (Argentina): A unique high-load liquid Pyroxasulfone herbicide powered by ADAMA’s Sesgama™ formulation technology, delivering long-lasting residual weed control in soybean, corn, and cereals. With 40% more active ingredient than standard liquid formulations, it offers greater operational efficiency and application convenience.
• FERRABAIT® (Latvia): An innovative molluscicide based on the novel, low-risk active ingredient Feralla®, providing growers with a highly effective new solution for slug and snail control. This first EU registration marks the beginning of a broader rollout.

Geopolitical Situation 

ADAMA is a global company with manufacturing and formulation facilities in several locations around the world, principally in Israel, China and Brazil. It is headquartered and has three manufacturing sites in Israel. Despite regional tensions that have escalated on February 28, 2026, the Company’s Israeli production sites and supply chain, including ports, continued to operate without significant delays allowing the Company to support its markets, and ongoing activities.

During March and early April 2026, the Company’s Neot Hovav site suffered limited and localized damage caused by falling debris following missile interceptions in the southern region of Israel. No bodily injuries were reported, and an immediate safety-driven closure of the facilities was carried out, followed by a phased shutdown, also for safety reasons. The Company initiated comprehensive damage assessments. The direct damage to its core production facilities was not meaningful and was primarily limited to a finished goods warehouse, certain ancillary equipment and systems and an open storage area. Thereafter, the Company undertook certain restoration activities, and as of the date of this release Neot Hovav site has returned to normal operational status. The Company expects the overall impact of these occurrences to be non-material, also due to appropriate compensation from governmental authorities.

Additionally, in respect to changes in global tariff policies, 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 third quarter decreased by approximately 4% (-9% in RMB; -6% in CER) to $897 million compared to last year, reflecting a decline of 4% in volumes and 2% in prices, partially compensated by positive impact of foreign exchange rates. 

The lower volumes resulted from lower market demand in certain regions due to higher farmer costs and weather conditions, partially compensated by new product introductions. Lower prices reflected the overall lower market pricing and weaker farmer purchasing power.

These results brought the revenues in the first nine months of 2026 to $2,997 million, 1% lower than last year (-5% in RMB terms; -4% in CER terms), reflecting a decrease of 3% in prices and 1% in volumes, partially moderated positive impact of foreign exchange rates.

Excluding the Company’s decision in Q3 2025 to reduce the manufacture and sale of certain basic chemicals, sales would have increased in the first nine months period by 1% in comparison to the corresponding period in 2025. Third quarter sales are on a comparable basis.

In EAME, sales declined in the third quarter reflecting significantly weaker market consumption and lower crop-protection applications across several European markets due to weather impacts creating channel inventory build-up and due to elevated farmer input costs. Market-share gains partly mitigated the decline, while competitive and pricing pressure remained high, concentrated in specific off-patent active ingredients.

North America sales increased supported by growth across Professional Solutions, Consumer and Canada. US Ag was impacted by lower market prices mainly in commodity categories, while continuing to present growth in key products and customer segments. Pricing pressure and elevated inventories affected several US agricultural products. 

Latin America: In Brazil, sales declined despite intensified commercial execution ahead of the soybean season particularly across fungicides and insecticides. This was offset by continued pricing pressure, farmer liquidity constraints and intense competition, particularly in commodity products.

In the rest of LATAM, sales increased supported by higher volumes, particularly in Argentina, following disciplined implementation of its strategic growth priorities across the region, despite continued competitive and pricing pressure and El-Niño impact in certain countries. 

Asia-Pacific (APAC) excluding China: Sales increased supported by growth in Pacific and India more than offsetting a decline in other South-East Asia sales. Pacific benefited from fungicide demand in Southern and Western Australia supported by new product introductions. South-East Asia sales were impacted by El-Niño impact on demand.

In China, sales reflected the Company’s decision to reduce manufacturing and sale of certain basic chemicals since Q3 2025 and low-margin products, leading to a decline in sales in the nine-month period while in the third quarter sales were on a comparable basis and increased, reflecting higher sales of brand formulations driven by new product launches and higher non-ag sales following better utilization rates.   

Reported gross profit in the third quarter declined 14% to $204 million (gross margin of 22.7%) compared to $236 million (gross margin of 25.2%) last year. In the first nine months, reported gross profit declined 2% to $777 million (gross margin of 25.9%) compared to $792 million (gross margin of 26.2%) 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).

Adjusted gross profit in the third quarter declined 11% to $228 million (gross margin of 25.4%) compared to $257 million (gross margin of 27.6%) last year. In the first nine months, adjusted gross profit declined 2% to $860 million (gross margin of 28.7%) compared to $878 million (gross margin of 29.0%) last year.

The decline in gross profit in the third quarter and first nine-month period was due to the decline in sales, as described above and negative cost impact. These impacts were slightly moderated by the improvement in the Company’s sales mix of higher margin products and positive impact of exchange rates. 

Reported operating expenses^[3] in the third quarter were $214 million (23.8% of sales) compared to $205 million (22.0% of sales) last year. In the first nine months of 2026 reported operating expenses declined to $614 million (20.5% of sales) compared to $636 million (21.0% of sales) 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 an expense of $37 million in Q3 2026 and an income of $36 million in 9M 2026 in comparison to expenses of $26 million in Q3 2025 and $73 million in 9M 2025. These items in 2026 mainly 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; (iii) capital gain from sale of a subsidiary’s logistics center in Israel; (iv) fixed asset impairment related to improvement of operational efficiency; and (v) restructuring costs. For further details on these non-operational items, please see the appendix to this release. 

Adjusted operating expenses in the third quarter decreased to $197 million (21.9% of sales) compared to $201 million (21.5% of sales) last year. In the first nine months, adjusted operating expenses reached $653 million (21.8% of sales) compared to $641 million (21.2% of sales) last year.

In the third quarter operating expenses decreased despite the negative impact of exchange rates following tight expense discipline. In the nine-month period operating expenses were still higher reflecting the negative impact of exchange rates, an increase in employee compensation and an increase in H1 2026 in expenses supporting business growth, partially offset by capital gain from the disposal of fixed assets.

Reported operating income was a loss of $10 million (-1.2% of sales) in the third quarter compared to an income of $30 million (3.2% of sales) last year. In the first nine months, reported operating income increased 5% to $163 million (5.4% of sales) compared to $155 million (5.1% of sales) last year.

Adjusted operating income in the third quarter declined 45% to $31 million (operating margin of 3.4%) from $56 million (operating margin of 6.0%) last year. In the first nine months, adjusted operating income declined 12% to $207 million (operating margin of 6.9%) compared to $237 million (operating margin of 7.8%) last year.

The lower operating income in the third quarter reflected the lower gross profit, partially compensated by lower operating expenses. In the first nine months, the decline in operating income reflected lower gross profit and higher operating expenses.

Reported EBITDA in the third quarter declined by 16% to $87 million (EBITDA margin of 9.7%) from $104 million (EBITDA margin of 11.2%) last year. EBITDA reported in the first nine months increased 10% to $417 million (EBITDA margin of 13.9%) from $378 million (EBITDA margin of 12.5%) last year.

Adjusted EBITDA in the third quarter declined 22% to $93 million (EBITDA margin of 10.4%) from $120 million (EBITDA margin of 12.9%) last year. Adjusted EBITDA in the first nine months declined 8% to $395 million (EBITDA margin of 13.2%) from $430 million (EBITDA margin of 14.2%) last year.

Adjusted financial expenses decreased to $57 million in the third quarter compared to $68 million last year and in the first nine months decreased to $174 million compared to $204 million last year.

The lower financial expenses in the third quarter of 2026 reflected the positive impact of the CPI, improved overall loan terms, the benefit of the continued positive cash flow and lower hedging costs. In the first nine months of 2026 the lower financial expenses also reflected the better debt structure, following the buyback of bonds in Q2 2025.

Adjusted taxes on income amounted to an expense of $48 million in the third quarter compared to $8 million last year, and in the first nine months amounted to an expense of $44 million compared to $4 million last year. The Company recorded higher tax expense in the first nine months of 2026 comparing to 2025 mainly due to lower tax income compared to last year, recognized according to the accounting method of calculation of tax assets related to unrealized profits and due to lower tax income compared to last year from foreign exchange impact of the stronger BRL. In addition, during the third quarter of 2026 the company adjusted the tax asset in Brazil according to the projected statutory profit before tax.

Reported net loss reached $115 million in the third quarter compared to $48 million last year. Reported net loss in the first nine months reached $53 million compared to $59 million last year.

After reflecting the impact of the above-mentioned extraordinary and non-operational charges, adjusted net loss in the third quarter reached $74 million compared to $20 million last year. Adjusted net loss in the first nine months reached $11 million compared to an income of $29 million last year.

Trade working capital as of September 30, 2026, was $2,183 million compared to $2,093 million as of September 30, 2025. The increase in working capital was due to higher receivables which reflected lower sales with short collection terms, and a decrease in account payables and a slight decrease in inventory levels, both due to lower procurement compared to last year.

Cash Flow: Operating cash inflow of $94 million and $194 million was generated in the third quarter and first nine months period respectively, compared to an inflow of $89 million and $331 million in the respective periods in 2025. In the first nine months, lower operating cash inflow was mainly due to lower collections of basic chemicals and timing differences mainly in Q1 2025, partially offset by lower procurement in comparison to last year, in which the Company increased procurement and inventory in order to provide business continuity during the merging of entities in Israel.

Net cash used in investing activities was $35 million in the third quarter and $16 million in the first nine months, compared to $43 million and $131 million in the respective periods in 2025. The Company continued the execution of its strategy to prioritize the most critical investments in infrastructure, portfolio and innovation. Additionally, part of optimization of its existing asset base, the Company disposed fixed assets primarily in the first nine months, including a logistics center in Israel and old dismantled facilities in China. The higher cash used in investing activities in the first nine months last year also reflected the payment for earn out related to Agrinova, a controlled subsidiary of the Company.

Free cash inflow of $33 million was generated in the third quarter and $87 million in the first nine months compared to $22 million and $112 million in the respective periods in 2025, reflecting the aforementioned operating and investing cash flow dynamics.

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 ideas 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
Rivka Neufeld                                                                        
Investor Relations & Finance Governance Manager             
Email: ir@adama.com                                                           

Zhujun Wang
China Investor Relations
Email: irchina@adama.com 

Abridged Adjusted Consolidated Financial Statements

The following abridged consolidated financial statements and notes have been prepared as described in Note 1 in this appendix. While prepared based on the principles of Chinese Accounting Standards (ASBE), they do not contain all of the information which either ASBE or IFRS would require for a complete set of financial statements, and should be read in conjunction with the consolidated financial statements of both ADAMA Ltd. and Adama Agricultural Solutions Ltd. as filed with the Shenzhen and Tel Aviv Stock Exchanges, respectively.

Relevant income statement items contained in this release are also presented on an “Adjusted” basis, which exclude items that are of a one-time 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.

Notes to Abridged Consolidated Financial Statements

Note 1: Basis of preparation

Basis of presentation and accounting policies: The abridged consolidated financial statements for the quarters ended September 30, 2026 and 2025 incorporate the financial statements of ADAMA Ltd. and of all of its subsidiaries (the “Company”), including Adama Agricultural Solutions Ltd. (“Solutions”) and its subsidiaries.

The Company has adopted the Accounting Standards for Business Enterprises (ASBE) issued by the Ministry of Finance (the “MoF”) and the implementation guidance, interpretations and other relevant provisions issued or revised subsequently by the MoF (collectively referred to as “ASBE”).

The abridged consolidated financial statements contained in this release are presented in both Chinese Renminbi (RMB), as the Company’s shares are traded on the Shenzhen Stock Exchange, as well as in United States dollars ($) as this is the major currency in which the Company’s business is conducted. For the purposes of this release, a customary convenience translation has been used for the translation from RMB to US dollars, with Income Statement and Cash Flow items being translated using the quarterly average exchange rate, and Balance Sheet items being translated using the exchange rate at the end of the period.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated.

Note 2: Abridged Financial Statements

For ease of use, the financial statements shown in this release have been abridged as follows:

Abridged Consolidated Income Statement:

• “Gross profit” in this release is revenue less costs of goods sold, taxes and surcharges, inventory impairment and other idleness charges (in addition to those already included in costs of goods sold); part of the idleness charges is removed in the Adjusted financial statements
• “Other operating expenses” includes impairment losses (not including inventory impairment); gain (loss) from sale of assets and non-operating income and expenses
• “Operating expenses” in this release differ from those in the formally reported financial statements in that certain transportation costs have been reclassified from COGS to Operating Expenses.
• “Financial expenses” includes net financing expenses and gains/losses from changes in fair value.

Abridged Consolidated Balance Sheet:

• “Other current assets, receivables and prepaid expenses” includes financial assets held for trading; financial assets in respect of derivatives; prepayments; other receivables; and other current assets
• “Fixed assets, net” includes fixed assets and construction in progress
• “Intangible assets, net” includes intangible assets and goodwill
• “Other non-current assets” includes other equity investments; long-term equity investments; long-term receivables; investment property; and other non-current assets
• “Loans and credit from banks and other lenders” includes short-term loans and non-current liabilities due within one year
• “Other current liabilities” includes financial liabilities in respect of derivatives; payables for employee benefits, taxes, interest, dividends and others; advances from customers and other current liabilities
• “Other long-term liabilities” includes long-term payables, provisions, deferred income and other non-current liabilities

Forward looking statement:

This press release published by ADAMA Ltd. or ADAMA Agricultural Solutions Ltd. (together the “Company”) is for marketing and information purposes only, and contains forward-looking statements which are based on Company’s management’s beliefs and assumptions and on information currently available to the Company’s management. By this press release, the Company does not intend to give, and the press release does not constitute professional or business advice or an offer or recommendation to perform any transaction in the Company’s securities. The accuracy, completeness and/or adequacy of the content of this press release, as well as any estimation and/or assessment included in this press release, if at all, is not warranted or guaranteed and the Company disclaims any intention and/or obligation to comply with such content. The Company shall not be liable for any loss, claim, liability or damage of any kind resulting from your reliance on, or reference to, any detail, fact or opinion presented herein. The Company’s assessments are based on the information available to the Company as of the date hereof, and may not be realized or be realized in a different manner than the Company estimates, inter alia, due to factors out of the Company’s control, including the risk factors listed in the Company’s annual reports and changes in the industry or potential operations of the Company’s competitors. Any content contained herein shall not constitute or be construed as any regulatory, valuation, legal, tax, accounting and investment advice or any advice of any kind or any part of it, nor shall they constitute or be construed as any recommendation, solicitation, offer or commitment (or any part of it) to buy, sell, subscribe for or underwrite any securities, provide any credit or insurance or engage in any transactions. Before entering into any transactions, you shall ensure that you fully understand the potential risks and returns of such transactions. Before making such decisions, you shall consult the advisors you think necessary, including your accountant, investment advisor and legal and tax specialists. The Company and its affiliates, controlling persons, directors, officials, partners, employees, agents, representatives or their advisors shall not assume any responsibilities of any kind (including negligence or others) for the use of and reliance on such information by you or any person to whom such information are provided.

^[1] Sources: Agbioinvestor, The CP Industry report – Market review: 2025. June 2026, internal sources

^[2] Excluding the manufacture and sale of certain basic chemicals, sales in China decreased by 5% in 9M 2026

^[3] Reported operating expenses include Sales and Marketing, General and Administration and R&D and include credit and other asset impairments (not inventory), other operating income and expenses as well as income from disposal of assets.

^[4] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.

^[5] The number of shares used to calculate both basic and diluted earnings per share in both Q3 2026 and 2025 is 2,329.8 million shares.

^[6] For an analysis of the differences between the adjusted income statement items and the income statement items as reported in the financial statements, see below “Analysis of Gaps between Adjusted Income Statement and Income Statement in Financial Statements”.

^[7] The number of shares used to calculate both basic and diluted earnings per share in both 9M 2026 and 2025 is 2,329.8 million shares.

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SOURCE ADAMA Ltd.