ADAMA Ltd. reported a $62 million net profit for the first half of 2026, reversing a $11 million loss in the same period last year, as the agrochemical producer navigated sustained pricing headwinds. Revenue remained essentially flat at $7.27 billion, while gross profit rose 6% to $632 million, lifting gross margin to 32% from 30% in H1 2025.
Adjusted net income increased 28% year-over-year, though adjusted EBITDA declined 3% to $302 million. Operating cash flow fell to $100 million from $242 million, a decline executives attributed to timing-related collection delays and inventory accumulation tied to the Israeli entity merger. Free cash flow totaled $54 million, down from $90 million in the prior-year period.
Volume growth of 1% offset a 4% average price decline across markets, with management noting a 3% increase excluding the closure of the Anpon asset. The company launched 23 products and secured 54 registration certificates during the period, advancing its shift toward higher-margin, differentiated offerings.
Shares of ADAMA traded flat in after-hours at $5.50, later slipping to $5.46, a 1.62% decline from the prior close of $5.55. The stock has ranged between $5 and $7.63 over the past 52 weeks.
For the full year 2026, ADAMA maintained revenue guidance at $4.559 billion and projected earnings per share of $0.04. The company expects market volumes to remain stable but pricing pressure to persist through year-end, with higher raw material costs anticipated to weigh more heavily on results in the second half. A planned return to sales in Turkey is projected to have a modest impact in 2026 and a larger effect in 2027.
Executives emphasized the transition from a stabilization phase to a new growth strategy, dubbed "Growing Forward," focused on portfolio differentiation, commercial execution, cost competitiveness, and operational optimization. CEO Gaël Hili stated the company aims to strengthen its position as a top post-patent synthetic chemistry provider, while CFO Efrat Nagar noted the cash flow decline was not structural but tied to temporary factors.
