ADAMA (000553) Q2 2025 earnings summary

Executive summary

• Q2 and H1 2025 delivered strong EBITDA and margin growth, marking the fifth consecutive quarter of improved profitability and the first top-line growth since Q3 2022, driven by volume rebound and operational efficiency.

• Transformation strategy, Fight Forward, focused on cost reduction, operational efficiency, and portfolio quality, is delivering results.

• Adjusted net profit for H1 was $22 million, reversing losses from H1 2024; net loss attributable to shareholders narrowed 91% to RMB -80.35 million.

• Free cash flow for H1 increased by $24 million to $32 million, reflecting better collections and cash management.

Financial highlights

• Q2 2025 sales reached $968 million, up 3% year-over-year, with 6% volume growth offsetting 3% price decline; H1 2025 revenue: RMB 15.02 billion, up 0.76% year-over-year.

• Q2 EBITDA increased 19.3% year-over-year; H1 EBITDA up 19.9% to $244 million and RMB 1.96 billion, up 40.8%.

• Gross margin improved to 29.6% in H1 (from 26.8%); gross margin in China segment rose by 3.5 percentage points to 26.6%.

• Free cash flow for H1 increased to $32 million; operating cash flow: RMB 1.74 billion, up 0.43%.

• Adjusted net loss in Q2 improved to -$8m from -$54m; basic EPS: -0.03 yuan.

Outlook and guidance

• Market remains under price pressure due to Chinese overcapacity, weak farmer economics, and low commodity prices.

• Channel inventory normalization is supporting volume recovery, but price declines persist.

• Management expects further volume growth and operational improvements, with no interim dividend or bonus shares planned.

• Ongoing focus on commercial excellence, value pricing, and profit-focused account management to drive future growth.