ArborGen Holdings (ARB) H2 2026 earnings summary

Executive summary

• Achieved highest revenue in five years, with 8% year-over-year growth to $68.2m, driven by advanced genetics, higher value products, and strong growth in Brazil.

• Adjusted US GAAP EBITDA rose 31% year-over-year to $11.5m, reflecting improved sales mix, operational efficiencies, and excluding $1.0m in one-off items.

• Net loss after tax improved to $(7.5)m, reflecting operational improvements, cost discipline, and absence of prior year impairments.

• Strategic focus on Brazil's growth, higher-value sales mix in the US South, and operational efficiency.

• Continued investment in R&D, advanced genetics, and product development to maintain competitive advantage.

Financial highlights

• Revenue increased 8% year-over-year to $68.2m; gross profit up 9% to $19.8m.

• Brazil contributed 44% of total revenue, with sales up 14% in local currency and seedling volumes up 5% year-over-year.

• US sales revenue remained flat year-over-year; average sales price increased 6% despite a 4% decline in volumes.

• Net debt increased 21% to $25.2m due to ongoing strategic investments; cash and cash equivalents stood at $2.2m as of March 31, 2026.

• Capital expenditure reduced to $4.1m from $7.7m.

Outlook and guidance

• Targeting further improvement in Adjusted US GAAP EBITDA for FY27, driven by Brazil volume growth and higher-value US products.

• Expecting continued volume growth in Brazil and some revenue and volume growth in the US South, driven by higher-value products.

• Ongoing focus on operational efficiency, cost management, and integration between US and Brazil.

• Continued investment in advanced genetics and operational efficiency expected to support growth.