ADAMA's Turnaround: Profitability Projected Amidst Market Headwinds

TEL AVIV, Israel and BEIJING – January 29, 2026 – Global crop protection leader ADAMA Ltd. has signaled a significant financial turnaround, providing preliminary estimates for 2025 that project a return to adjusted net profitability after two years of substantial losses. The company credits its aggressive 'Fight Forward' transformation plan for bolstering its bottom line, even as it navigates persistent headwinds in a volatile agricultural market.

In a statement released today, ADAMA (SZSE: 000553) anticipates an adjusted net profit between USD $4 million and $54 million for the full year of 2025. This marks a dramatic reversal from the adjusted net loss of $206 million reported in 2024 and the $236 million loss in 2023. Furthermore, the company expects its reported net loss to narrow significantly, projecting a range of $(172) million to $(122) million, a stark improvement from the $(407) million reported loss in the prior year.

These improvements come despite an expected revenue decline of 1% to 4% in USD terms for 2025. The company attributes the sales dip to continued weak pricing for active ingredients, a strategic pivot away from certain basic chemical products, and a challenging first quarter in Turkey. However, the ability to drive profitability while top-line revenue shrinks underscores the initial success of its deep-seated operational overhaul.

The 'Fight Forward' Blueprint for Recovery

The positive financial trajectory is largely attributed to the 'Fight Forward' strategic plan, a comprehensive three-year initiative launched in early 2024 to enhance profitability and cash flow. The plan is built on three core pillars: optimizing financial management, streamlining the company's operating model, and increasing focus on high-value, innovative products.

Evidence of the plan's impact was already visible in 2024. Despite an 11% drop in sales to $4.14 billion that year, ADAMA managed to increase its adjusted EBITDA by 15% to $469 million and turn its free cash flow positive with a $217 million inflow, a remarkable recovery from a negative $147 million in 2023. The 2025 estimates suggest this momentum is not only continuing but accelerating.

By focusing on operational efficiency and cost discipline, ADAMA has successfully increased its gross profit and margin. The company noted that lower costs from improved operations and cheaper inventory sold more than compensated for the persistent pressure on prices. This strategic cost management, combined with a portfolio shift toward higher-margin products, has been central to improving underlying profitability. The 'Fight Forward' plan also involves centralizing global functions and focusing on key geographies to maximize return on investment, allowing commercial teams to concentrate more effectively on customer needs.

Navigating a Turbulent Agricultural Market

ADAMA's turnaround is particularly noteworthy given the challenging conditions plaguing the entire crop protection industry. The sector has been grappling with the aftermath of a boom in 2022, which led to high channel inventory levels and widespread destocking by distributors throughout 2023 and 2024. While inventory levels in most regions have reportedly normalized to pre-pandemic levels, the market remains under pressure.

Key headwinds include persistent overcapacity in active ingredient production, particularly from China, which has kept prices low. Concurrently, a high-interest-rate environment and softening crop commodity prices have squeezed the finances of both distributors and farmers, leading to more cautious, "just-in-time" purchasing patterns.

ADAMA's major competitors have also felt the strain. Industry giants like Syngenta, BASF, and Bayer all reported significant sales and earnings declines in 2023 and continued to face similar pressures through the first three quarters of 2024, citing destocking and price erosion as primary challenges. Against this backdrop, ADAMA’s ability to improve its adjusted EBITDA and swing to an adjusted net profit highlights the effectiveness of its internal strategic actions in offsetting external market forces.

Deconstructing the Bottom Line: Adjusted vs. Reported Figures

While the projection of an adjusted net profit is a major milestone, it is crucial to understand the distinction between this figure and the company's still-negative reported net loss. ADAMA, like many large corporations, uses adjusted (non-GAAP) metrics to provide investors with a clearer view of its core operational performance by excluding items it deems transitory, non-operational, or non-cash.

For ADAMA, these adjustments are substantial and account for the significant gap between the adjusted profit and the reported loss. Key items excluded from the adjusted figures include:

• Amortization Charges: Non-cash charges related to intangible assets from the 2017 ChemChina-Syngenta acquisition and other past acquisitions.
• Restructuring Costs: One-time expenses and advisory fees associated with the implementation of the 'Fight Forward' plan itself.
• Asset Impairments: Write-downs of fixed assets and inventory as part of the operational efficiency drive.
• Legacy Provisions: Costs related to cleanup and remediation at a plant in Israel and compensation for product liability.
• Non-cash Financial Expenses: Items such as the revaluation of put options related to minority stakes.

The improvement in the reported net loss, from $(407) million in 2024 to an estimated range of $(172)-$(122) million in 2025, indicates that while these non-operational charges remain significant, the underlying business is generating enough operating profit to begin absorbing them more effectively. This trend suggests a healthier core business that is on a path toward comprehensive, reported profitability.

Company officials have noted that these preliminary figures have not yet been audited but that preliminary communications with its external auditor have revealed no material disagreements. Investors are advised to exercise caution, as the final figures may change upon further analysis. The complete, audited financial statements for 2025 are scheduled for release after market hours on March 26, 2026.