ADAMA Ltd. Q1 2026 Results: Revenue at $1.04 Billion, Net Profit Surges Nearly 3x on Volume Growth and Portfolio Improvement
30 April 2026, Israel: ADAMA Ltd. (SZSE 000553) reported its financial results for the first quarter ended March 31, 2026, delivering sales growth, improved gross profit, and a significant increase in net income, driven primarily by higher volumes and continued portfolio optimization.
Q1 2026 Financial Highlights
- Sales increased 4% (0.5% in RMB) to $1,037 million, mainly reflecting a 3% increase in volumes
- Adjusted gross profit rose 5% to $318 million, with gross margin improving from 30.3% to 30.6%
- Reported net profit increased 2.9x to $82 million; adjusted net profit rose 35% to $59 million
- Adjusted EBITDA stood at $150 million (vs $160 million in Q1 2025)
- Operating cash outflow widened to -$141 million (vs -$29 million)
- Free cash outflow reached -$139 million (vs -$86 million)
Gaël Hili, President and CEO, stated that the company’s “Fight Forward” transformation has created a foundation for profitable growth, supported by improved volumes and portfolio quality, although profitability and cash flow were impacted by higher operating expenses and working capital investments.
Financial Performance Summary
| USD (m) | As Reported Q1 2026 | Q1 2025 | % Change | Adjustments Q1 2026 | Q1 2025 | Adjusted Q1 2026 | Q1 2025 | % Change |
|---|---|---|---|---|---|---|---|---|
| Revenues | 1,037 | 1,000 | 4% | 0 | 0 | 1,037 | 1,000 | 4% |
| Gross profit | 287 | 272 | 6% | 30 | 31 | 318 | 303 | 5% |
| % of sales | 27.7% | 27.2% | 30.6% | 30.3% | ||||
| Operating income (EBIT) | 110 | 70 | 57% | (22) | 26 | 88 | 96 | -8% |
| % of sales | 10.6% | 7.0% | 8.5% | 9.6% | ||||
| Income before taxes | 60 | 18 | 228% | (22) | 23 | 38 | 42 | -8% |
| % of sales | 5.8% | 1.8% | 3.7% | 4.2% | ||||
| Net profit | 82 | 21 | 289% | (23) | 23 | 59 | 44 | 35% |
| % of sales | 7.8% | 2.1% | 5.7% | 4.4% | ||||
| EPS (USD) | 0.0352 | 0.0090 | 0.0253 | 0.0188 | ||||
| EPS (RMB) | 0.2443 | 0.0649 | 0.1760 | 0.1350 | ||||
| EBITDA | 182 | 144 | 27% | (33) | 16 | 150 | 160 | -6% |
| % of sales | 17.6% | 14.4% | 14.5% | 16.0% |
Crop Protection Market Environment
The global crop protection market continues to face volatility driven by geopolitical developments and macroeconomic pressures. Elevated oil prices are creating potential inflationary impacts, while persistent oversupply of active ingredients is maintaining pricing pressure.
Although channel demand recovered in 2025 and inventory levels normalized, pricing remains weak in early 2026. Crop commodity prices are stabilizing at relatively low levels, limiting farmer income upside and reinforcing cautious, just-in-time purchasing behavior despite normalized volumes.
Strategy Execution and Growth Focus
In 2026, ADAMA entered the next phase of its strategy, building on the “Fight Forward” program. The company is focusing on:
- Driving profitable top-line growth
- Enhancing commercial capabilities
- Accelerating differentiated innovation
- Improving portfolio quality
- Optimizing global supply and manufacturing
This phase is supported by a stronger cost base and improved operational efficiency.
Sustainability Progress
The company published its 2025 ESG Report, highlighting:
- 21% reduction in Scope 1 and 2 greenhouse gas emissions
- Training of over 680,000 farmers and agricultural workers
These efforts reflect ongoing improvements in operational efficiency, stewardship, and ESG risk management.
Portfolio Development and Product Innovation
ADAMA continued to expand its differentiated portfolio through global product launches and registrations. Key launches included:
- FORABAZ® (India): Chlorantraniliprole + Novaluron formulation
- BREVIS™ SC (Canada): Plant growth regulator for fruit thinning
- MARATHON® (Australia): Herbicide for wheat and barley
- ATEKA™ (USA): Systemic insecticide with enhanced uptake
- COSAYR® (Europe): Chlorantraniliprole-based insecticide
Additional registrations included GALIL® nano (Brazil), TELAVEX® (Europe), and SPIROTETRAMAT active ingredient (India), among others.
Geopolitical Developments and Operational Impact
Despite escalating regional tensions in Israel since February 2026, ADAMA’s operations remained largely unaffected.
- Limited damage occurred at the Neot Hovav site due to falling debris
- No injuries were reported
- Core production facilities were not materially impacted
- Operations have largely returned to normal
The company expects no material impact on production or business continuity. Additionally, a dedicated task force has been established to monitor global tariff changes, which are currently expected to have minimal impact.
Revenue Performance and Regional Trends
Revenues increased 4% to $1,037 million, driven by higher volumes and favorable FX, partially offset by lower prices.
Table 2. Regional Sales Performance
| Region | Q1 2026 ($m) | Q1 2025 ($m) | Change USD | Change CER |
|---|---|---|---|---|
| Europe, Africa & Middle East | 406 | 356 | 14% | 5% |
| North America | 237 | 219 | 8% | 8% |
| Latin America | 144 | 147 | (2%) | (7%) |
| Asia Pacific | 249 | 278 | (10%) | (12%) |
| Of which China | 134 | 166 | (19%) | (21%) |
| Total | 1,037 | 1,000 | 4% | (1%) |
Key Regional Insights:
- EAME: Strong growth driven by volumes and improved positioning
- North America: Volume growth supported by product launches and seasonal demand
- Latin America: Pricing pressure offset by volume gains in Brazil
- Asia-Pacific: Growth in India; declines in China due to portfolio optimization
Profitability and Cost Dynamics
Gross profit increased due to improved volumes, favorable FX, and portfolio quality, despite pricing pressure and cost increases.
Operating expenses rose on an adjusted basis due to:
- Exchange rate impacts
- Higher employee compensation
- Increased investment in growth
Adjusted operating income declined 8% due to higher expenses, while reported operating income increased significantly due to non-operational gains.
Cash Flow and Working Capital
- Trade working capital rose to $2,297 million
- Operating cash outflow widened due to seasonal factors and timing of collections
- Investing activities generated $23 million inflow (including asset sale)
- Free cash outflow reached $139 million
The increase in working capital reflects inventory build-up and higher receivables aligned with growth expectations.
Revenues by Operating Segment
Sales by Segment
| Segment | Q1 2026 (USD m) | % | Q1 2025 (USD m) | % |
|---|---|---|---|---|
| Crop Protection | 972 | 94% | 906 | 91% |
| Intermediates and Ingredients | 65 | 6% | 94 | 9% |
| Total | 1,037 | 100% | 1,000 | 100% |
Sales by Product Category
| Category | Q1 2026 (USD m) | % | Q1 2025 (USD m) | % |
|---|---|---|---|---|
| Herbicides | 461 | 44% | 445 | 45% |
| Insecticides | 274 | 26% | 243 | 24% |
| Fungicides | 237 | 23% | 217 | 22% |
| Intermediates and Ingredients | 65 | 6% | 94 | 9% |
| Total | 1,037 | 100% | 1,000 | 100% |
ADAMA’s Q1 2026 performance reflects a transition phase where volume growth and portfolio improvements are translating into stronger revenues and net profit. However, ongoing pricing pressure, higher operating costs, and increased working capital continue to weigh on profitability and cash flow. The company remains focused on executing its next growth phase, emphasizing innovation, efficiency, and portfolio quality to navigate a volatile global crop protection market.
Also Read: Biotalys Reports Full-Year 2025 Financial Results and Business Highlights
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