ADAMA (000553) Q1 2026 earnings summary

Executive summary

• Sales grew 8.4% year-over-year to $950 million in Q1 2026, driven by higher volumes and positive FX, despite a 4% price decline and challenging market conditions.

• Gross profit increased by 8.3% to $287 million, with gross margin stable at 30.2%–30.6%.

• Adjusted net profit rose to $76.5 million from $9.1 million year-over-year; reported net profit surged to $82 million, aided by a $37 million gain from a logistics center sale.

• EBITDA declined 5–6% year-over-year to $120–$150 million due to higher OPEX and less favorable mix.

• Strategic exit from low-margin basic chemicals and focus on higher-margin products supported profitability.

Financial highlights

• Sales reached $950–$1,037 million, with 3% volume growth offset by a 4% price decline.

• Adjusted EBIT was $73 million, down 5% year-over-year; operating expenses increased to $214 million.

• Free cash outflow was $139–$140 million, partially offset by asset sale proceeds.

• Operating cash flow at $141 million, reflecting seasonal sales and collection timing.

Outlook and guidance

• Price increases implemented in April and May to offset rising input costs, with full impact expected in Q3/Q4.

• Gross margin improvement expected to continue, but at a slower pace than in 2025.

• Ongoing focus on OpEx discipline, profitable sales growth, and innovation.

• Return to Turkish market anticipated in H2 2026, with higher expectations for 2027.

• Management expects geopolitical and tariff impacts to remain immaterial.